According to Zhu Hongren, chief engineer and spokesman of the Ministry of Industry and Information Technology (MIIT), qualified SMEs are encouraged to invest abroad in acquiring brands.
Zhu pointed out that in order to build a sound environment for SMEs to participate in international economic and trade cooperation, the central government has strengthened cooperation and exchanges with other countries and international organisations in the SME sector, established a regular inter-governmental SME policy consultation mechanism, and signed relevant cooperation agreements.
The government has also implemented certain detailed policies helping SMEs to explore the international market. First, an SME international market development fund has been set up to support SMEs to take part in exhibitions, undergo international certification, and launch marketing and promotion abroad. Second, a platform for promoting “cooperation, exchange, exhibition and trade” has been built for SMEs. Through this platform, seven ministries and one province including MIIT and the Guangdong provincial people’s government jointly organise the China International SME Fair every year during which an Asia-Europe SME Cooperation and Exchange Hall is set up, while countries promoting SME development are invited to be the co-host country.
According to Zhu, three steps will be taken. First, SMEs will be encouraged and guided to proactively expand the mainland market; the SME special fund and technology renovation fund will be increased; support will be given to expedite the development of SMEs with steady sales channels and large market shares. Qualified SMEs will be encouraged to take part in “home appliances, agricultural machinery, cars and motorcycles to the countryside” plan as well as home appliance and car replacement campaigns. Financial subsidies and support will be given to SMEs participating in various kinds of exhibitions and promotions. Efforts will be made to build Sino-foreign joint-venture and regional SME product and technology display centres in a bid to help enterprises market and display their products.
Second, action will be taken to stabilise the market shares of SMEs. On the government level, efforts will continue to be made to promote market expansion, technological cooperation and trade ties among SMEs in various countries; strengthen foreign cooperation, exchanges and intra-regional cooperation among SMEs; and encourage qualified SMEs to adopt various formats to invest, undertake M&A, acquire brands, and establish trading entities and technological R&D institutions abroad.
Third, efforts will be made to guide SMEs to enhance their market expansion ability. SME’s market expansion ability plays a crucial role in China’s “going out, bringing in” strategy. SMEs are encouraged to enhance their ability in seeking market expansion, strengthening market analysis and forecast, and capturing market opportunities. MIIT will also continue to build and improve public service platforms for SMEs aimed at promoting exchanges and market expansion, providing services and support on human resources training and information sharing for SMEs in their quest for expanding the domestic and foreign markets, and helping SMEs upgrade their quality.
