2020年CRI SMEs innovate cooperation to highlight China-EU economic ties（在线收听）

This year marks the 15th anniversary of the establishment of the China-EU comprehensive strategic cooperation partnership. It's also the 20th anniversary since the start of formal dialogue between the leadership of the two sides.

Cooperation between small and medium enterprises, SMEs, has become a pillar of the economic relationship between China and the European Union.

In 2006 an agreement was signed that established a mechanism for dialogue between SMEs in China and Europe, with the aim of improving cooperation, and creating a favorable policy environment.

Wang Jiangping, from China's information industry ministry, says that SMEs are the most dynamic business group, and have served as the backbone for economic growth in China and Europe.

"China has a total of 30 million small and medium enterprises, which account for more than 99 percent of the total number of enterprises. They contribute more than 50 percent of tax revenue, nearly 60 percent of Gross Domestic Product, file over 70 percent of invention patents, and provide over 80 percent of the job opportunities. They serve as a vital engine for China's economic growth, and are the main channel for start-ups, and an important source of innovation," Wang says.

In recent years, cooperation between China and Europe has steadily broadened, and its strategic importance has been increasing.

Jens Hildebrandt, a representative from the Delegation of German Industry and Commerce in Guangzhou, says that 99 percent of enterprises in Germany are SMEs, and that these businesses have become an important factor in spurring economic growth in Germany.

"Nowadays, more than 5,000 Germany companies are active in China. According to a recent report from the Germany daily newspaper "Handelsblatt", China has been Germany's most important economic partner for two consecutive years, and captured 10 percent of the sales in Germany. Export-oriented companies in Germany are in need of China's dynamic market. Cooperation between government and enterprises offers a driving force for bilateral cooperation," Hildebrandt adds.

In 2004, China and Germany signed a memorandum of understanding on cooperation between small and medium enterprises in China and Germany, a memorandum that established a regular mechanism for policy dialogues.

Under the guiding of China's information industry ministry, Zhong De Metal Group has set up a center in Germany for China's SMEs. The center provides services including finance, investment, law, human resources, and intellectual property.

Improved information sharing in these fields helps to reduce the risks and costs of overseas investment, and strengthens international competitiveness.

Yang Lixin is the director of the center.

"Chinese corporations overseas always have a need for coordination. The demand of small and medium enterprises for for localization can be met by China's enterprise zones. We have achieved a balance between demands and needs, to attract investment and talent for the enterprise zones."

Last year China and Germany renewed their management training cooperation agreement that is targeted at SMEs. The renewed agreement further expands the scope of training and advances pragmatic cooperation among these enterprises.