Background

Following the rapid Chinese economic expansion, especially since the country's accession to the World Trade Organisation, trade between the European Union (EU) and China is growing faster than any other bilateral trade relationship in the world. While business opportunities for EU companies abound, the challenges faced by European businesses entering the Chinese market should not be underestimated. This particularly applies to Small and Medium-sized Enterprises (SMEs), which often pair dynamic entrepreneurship with relative unpreparedness when entering foreign markets.

According to the Small Business Act for Europe, which was adopted in June 2008, in the EU, SMEs account for 99.7% of all businesses and are acknowledged as a key source of growth, entrepreneurship, innovation, competitiveness and employment. At the same time, SMEs are typically less resourced than larger firms to address the complexities and risks of entering global markets.

For China, the European Union has decided to allocate EUR5million to setting up the EU SME Centre. A “Feasibility study on a European Centre in China for European SMEs and other activities” was conducted and confirmed that “EU SMEs would benefit from practical, hands-on business support solutions that will enable them to develop their international business in the Chinese market.” While the primary target group of the EU SME Centre are European companies, the concept is also in line with the overall EU-China SME dialogue. The establishment of the EU SME Centre promotes EU-China trade and investment relations.

The EU SME Centre functions as a Support Service Provider for European SMEs.  Specifically, the Centre assists SMEs to establish, develop and maintain commercial activities in the Chinese market – through export and/or investment – by providing support through the provision of information, confidential advice, networking events and training, particularly at the crucial early stages of their market penetration strategy.  The Centre also acts as a platform facilitating coordination amongst Member State and European public and private sector service providers to SMEs.