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More transparent information channels should be set up between the government and small and medium-sized enterprises (SMEs) within the World Trade Organization (WTO) framework, deputy director of the Trade Development Bureau of the Ministry of Commerce Jia Guoyong said yesterday in a speech at the WTO and China Beijing International Forum 2006 in Beijing.

Statistics show that 99 percent of China's export business is from SMEs, which provide 75 percent of job opportunities, 20 percent of foreign trade, and 50 percent of annual revenue.

However, Jia said there are some problems hindering the development of SMEs within the WTO framework.

Jia said more than 29 percent of SMEs find it hard to get capital funding, and 36 percent lack knowledge of the WTO. Besides the lack of transparency in the information channels, the significant expense of applying for export certification is also a headache for many SMEs.

Chen Zexing, deputy director of the Beijing Municipal Bureau of Commerce, warned that SMEs should enhance their own management abilities, and create more brands under their own intellectual property rights. Chen also said the government should perfect the exterior management environment.

Currently, there are only 41 kinds of privately-owned enterprises allowed to run foreign trade business, and there are some rules that contradict each other, which confuses the SMEs and increases business costs.

Although Beijng has many service platforms for SMEs, the effect is not good. Chen said Beijing has 13,000 SMEs that are allowed to engage in international trade, but only 400 of them are in contact with the government.

When asked how to solve the above-mentioned problems, Jia said corresponding laws, increased guidance and service systems are needed, and the government should provide import and export loans, insurance and funds to help SMEs solve capital problems.

(For more biz stories, please visit Industry Updates)