It aims to further strengthen cooperation and exchanges between Chinese and overseas small- and medium-sized enterprises (SMEs).

Changzhou's geographical location in the affluent Yangtze River Delta and its traditional industrial base have given it favorable conditions for economic development.

And in the past two decades, the mushrooming numbers of SMEs in the city has greatly facilitated the rapid and steady growth of the local economy.

"SMEs have contributed tremendously to the overall economic and social development of the city and have become an indispensable part of the local economy," said Li Quanlin, Party chief of Changzhou.

SMEs have also played a vital role in generating job opportunities and narrowing the gap between rural and urban areas.

Most SMEs began life in rural areas, with the oldest dating back to the early 1980s. They have since taken a large proportion of surplus rural workforce, helped improve farmers' living standards and become the driving force behind the local economy.

But SMEs are facing intense competition following China's entry to the World Trade Organization.

"What they need to do most urgently is to adopt new management concepts and shift to manufacturing high-tech products," said Li.

The local government is helping SMEs to restructure and improve entrepreneurial and managerial techniques in the belief they will be more competitive in economic globalization.

Activities such as a commodity exhibition, technology transfer and business talks will take place during the five-day fair.

Electro-machinery, building materials, motor vehicles, light industrial products and various large types of equipment will be displayed.

Delegations from most provinces and autonomous regions, and from the Hong Kong Special Administrative Region, as well as about 30 multinational companies from the United States, Japan, Germany and Italy, will participate.

At the same time, the World Convention of SMEs 2002 will be held in the city from September 19-21. It is the second World Convention on SMEs to be held in China, following the success of the first convention in Beijing in 1993.

At the convention, business sessions will be held on various topics, such as the role of government, UN agencies, SME associations and other intermediaries in promoting and supporting SMEs.

Seminars will also look at the function of e-business in fuelling SME efficiency in the new decade, innovations by such firms, and utilization of intellectual property rights by enterprises.

Present at the convention will be UN officials, foreign embassy and consulate officials and entrepreneurs from a number of countries.

(China Daily August 20, 2002)