The Second China’s SMEs Global Development Forum, supported by Ningbo Municipal Government, and co-organized by Global Alliance of SMEs (GASME), Ningbo Entrepreneurs Association, and Zhejiang SME Association, was held at the Pacific Hotels and Resorts in Ningbo on December 9th, 2014. Around 1500 participants attended this forum, including former state leaders, senior officials of international organizations, international business leaders, experts and executives of SMEs.

The theme of this forum is: New Normal, New Opportunity, Innovation & Creation for Global Success.

The foreign VIPs include:
The Honorable Lee Myung Bak, Former President of South Korea,
The Honorable Jean Pierre-Raffarin, former French Prime Minister and Chairman of Senate Committee of Military, Defense and Foreign Affairs，
Mr. Carlos Magariños, Global Chairman of GASME and Former UNIDO Director-General,
Dr. Sebastian Paust, Board Member of German Society for International Cooperation (GIZ) GmbH and European member in the Advisory Council of the Asian Development Bank Institute(ADBI),
Dr. George Wang, Executive Chairman of GASME, tenured Professor of Finance at City University of New York and the Executive Director of the SME Research Center of Peking University HSBC Business School,
Mr. William Spitler, Chairman of Board of Trustees of GASME and Former Director of New York Office, U.S. Department of Commerce.

The Chinese VIPs include:
Mr. Bao Yujun, Former vice Chairman of the All-China Federation of Industry and Commerce,
Ms. Yu Hongyi, Deputy Party Secretary of Ningbo ,
Mr. Chen Zhongchao, Vice Mayor of Ningbo,
Mr. He Weiwen, Vice Chairman of GASME and Former Economic and Commercial Counselor at Chinese Consulate General in New York,
Mr. Qian Xinhao, Chairman of Zhejiang SME Association,
Mr. Cai Zhangsheng, Standing Vice Chairman of Zhejiang SME Association,
Mr. Yao Guanghui, Executive Vice Chairman of Ningbo Entrepreneurs Association,
Mr. Chen Guangbiao, President of Jiangsu Huangpu Recycling Resources Co., Ltd,
Mr. Feng Jun, President of Aigo Digital Technology Co., Ltd,
Mr. Yi Fajiu, President of Influence Education Training Group,
Mr. Guo Shuliang, Vice President of Shanghai Golden Monkey Group,
Mr. Chen Dihao, President of Hangzhou Very Effective Culture Creativity Co., Ltd.

Currently, China’s economy has entered a “new normal” state, as it changes from high-speed growth to medium-high growth and also changes from factor/investment driven to innovation-driven. And the double-digit rapid growth in the past has gone. This forum aims to create a high-profile international exchange platform to study and discuss the missions, growth points and challenges and solutions, so as to promote SMEs to make greater contributions to supporting strong, sustainable and balanced growth in both Chinese and world economy.

Chen Zhongchao, Deputy Mayor of Ningbo expressed warm welcome to the convening of the Second China’s SMEs Global Development Forum in Ningbo on behalf of the Ningbo Municipal People’s Government. He believed that, the profound knowledge and penetrating insight of the public and business leaders as well as experts and scholars would provide most innovative and foresight guidance to all the enterprisers attending the Forum.

Former South Korean President Lee Myung-bak said that, SMEs are playing an extremely important role in Korean economy. He himself used to be a worker at Hyundai, which in turn, started from a small business, only to develop to a world conglomerate today. Just as that in South Korea, small-and medium-size enterprises (SMEs) in China have been gaining importance. They have provided 77% of all jobs and made brilliant achievements. Alibaba, Xiaomi, Lenovo and other companies, which were originally founded as SMEs, have walked out of China and grown to world-class enterprises. Many more SMEs take them as models and numerous young people follow their steps with great enthusiasm. This is the strength of China. He said that, the industrial pattern dominated by heavy industry in the past was very favorable to large-scale enterprises, which possessed vast capital and played leading roles in world economy; while SMEs lagged behind. Nowadays, however, hardware-centered industrial pattern has converted into a software-centered one, knowledge is becoming increasingly important and highly shared information brought by Internet provides equal opportunities for enterprises to compete. The key for a successful business is not the size, but the insights and fast decision-making.

How should the government support the SMEs growth and their global competition? In his speech, former French Prime Minister Pierre Raffarin explained the three "treasuries" for the development strategy of SMEs, including internationalization, innovation and large projects. According to Raffarin, the Chinese strategy of "Maritime Silk Road in 21 Century" greatly influences the world and provides abundant opportunities for the SMEs. The "Maritime Silk Road" extends from Chinese east coast to Europe, where Lyons is a pivot city with a long history. It is believed that the SMEs can seek the business opportunities from the cooperation in large projects including economy, technology, finance and tourism. In addition, with the constantly emerging of KaiHui funds and other investment funds, SMEs of the two countries will also get increasing financial support for internationalization of. During the dialogue with entrepreneurs after his speech, Raffarin explained the significance of big projects to small business. He showed the case of Small and Medium Business - the Alliance，SMBTA in the US. " They help SMEs enter into the public markets more easily, such as supplies for national defense. It is impossible for SMEs to obtain such public market opportunities only by competition. They need government support. "

Mr. Carlos Magariños, Global Chairman of GASME and Former UNIDO Director-General, delivered a speech on issues as financing difficulties of SMES. 89% of SMEs across the globe are facing serious challenges in the current economic situation, with profits shrinking and inflationary pressure mounting. Carlos is very concerned about the issues of small and medium-sized enterprises credit crunch. He pointed out that the macroeconomic situation caused SMEs to obtain financing only through a credit transaction or intended payment usually. This situation is dealing a hard blow to SMEs' business confidence and they can only seek survival through niche markets and market segmentation. Governments and international organizations should join hands to help SMEs to activize innovation spirit, get access to financial resources, enhance credit guarantee mechanism, recover stable business environment, simplify complicated formalities and excessive supervision. They should promote cooperation between SMEs and large - scale enterprises , thus facilitate their participation in the global supply chain. This is the only way for SMEs to get out of the global economic crisis.

Dr. Sebastian Paust, Board Member of German Society for International Cooperation (GIZ) GmbH and European member in the Advisory Council of the Asian Development Bank Institute (ADBI), revealed German SMEs development experience. SMEs in Germany account for 20% in industrial production compared to only 14% in the US. One of the successful experiences in Germany is that the seemingly not-so-important SMEs are actually leaders in some global niche markets and market segments. Besides, Germany has a most sophisticated system of industry associations and chambers of commerce, as well as chambers of commerce for public services. Those organizations are actively promoting SMEs trade and investment activities at home and abroad. They not only defend the interests of SMEs firmly, but also ensure government, when deciding policies, to consider continued investment, friendly macro-economic environment, open and stable fiscal and monetary policies.

Mr. Bao Yujun, former vice Chairman of the All-China Federation of Industry and Commerce, said: "Since 18th CPC National Congress, a new era has come for Chinese private investment to play a leading role, which is the primary direction in the future. Before 2010, investment mainly depended on government, especially the package plan in 2008, we must react quickly, firmly and heavily. Then, according to the 'new 36 articles' published in 2010, private investment is encouraged. In the long run, China's economic development, stability, employment, innovation and innovation-driven all mainly depend on private enterprises." Mr.Bao said that, innovation is the only way private enterprises access to investment opportunities and achieve sustainably healthy development. Furthermore, private enterprises must actively join in the reform process to get a truly equal treatment.

Mr. He Weiwen, Vice Chairman of GASME and former Economic and Commercial Counselor at Chinese Consulate General in New York, emphasized: "American transnational corporations' prime concern on Chinese economy is neither real estate bubble nor economic downturn. But as investment efficiency keeps reducing, they worry that in 3-5 years, China's economy will repeat the same standstill situation as Japan did in the past. I don't think there is such a threat, but we should be aware of efficiency shrinking trend. Under such situation, first, we must reform and break banking monopoly; second, open our door to the world. Optimizing resource allocation should not be done in China only. Instead, we should go global, seeking best capital, technology, raw materials, human talents and the most favorable market, achieving highest productivity with least number of employees and highest profit"

Mr. Cai Zhangsheng, Standing Vice Chairman of Zhejiang SME Association, pointed out that, SMEs is the backbones of the Zhejiang economy and society, which 3.5 million SMEs and 35 million entrepreneurs are the main body and support of Zhejiang, like blue sky and green grassland nourishing local people's survival and development. Mr. Cai emphasized specifically that international cooperation and exchanges is very important for SMEs development. He said: Zhejiang SMEs Association cooperate with Global Alliance of SMEs(GASME) on SME Global EZpath Program which makes it a great strategy for SMEs going abroad. According to him: "So far, GASME is the best, brightest and most resourceful platform in SMEs international cooperation! "

Mr. He Weiwen announced Ningbo Proposal at the end of the forum. The proposal appealed that Chinese SME entrepreneurs shall support central government's Comprehensively Deepening Reforms, promote market access, break monopoly, thus providing equal conditions for state-owned enterprise, private enterprise and foreign enterprise to compete fairly and operate by law. Ningbo Proposal also encourages Chinese SMEs to communicate and cooperate with GASME and chambers of commerce of other countries and develop all types of practical platforms, including financing, training, innovation, technology importation, brand building, promoting, human talent exchanging and so on.

Dr. George Wang, Executive Chairman of GASME and tenured Professor of Finance at City University of New York, moderated the dialogues of Mr. Lee Myung-bak and Mr. Raffarin with Chinese entrepreneurs respectively. They communicated with the two national leaders face to face on the economic outlook of the world, the exit of QE by US Federal Reserve, regional and bilateral trade agreements, international status of RMB, trade and investment relations between China and the Republic of Korea, Sino-French SMEs cooperation, SMEs innovation and internationalization development, etc.

During the conference, Ms. Yu Hongyi, Deputy Secretary of the CPC Ningbo Committee, met separately with Mr. Lee Myung-bak, Mr.Raffarin, and Mr. Carlos, Global Chairman of GASME.

On the afternoon of December 9th, former French Prime Minister Raffarin and GASME Global Chairman Carlos, took a field visit in Ningbo Best Education Internet Technology Co., Ltd, Ningbo Cartevilla International Trade Co., Ltd and Hooweet Restaurant Co., Ltd. During the visit, GASME signed strategic cooperation agreements with Ningbo Best Education Internet Technology and Ningbo Cartevilla Wine.

This Forum is organized by Hangzhou Very Effective Culture Creativity Co., Ltd, Xiamen Perfect Victory Cultural Diffusion Co., Ltd and Ningbo Ever Fortune cuture development Co., Ltd. The Co-organizers are Ningbo Best Education Internet Technology Co., Ltd, Ningbo HengJia paper products Co., Ltd, Ningbo Hooweet Restaurant Co., Ltd. Ningbo Cartevilla International Trade Co., Ltd, Shenzhen Morgan Shengtong Investment Consultant Co., Ltd, Zhejiang Xichuan Commodities Culture Development Co., Ltd.

Keynote Speakers

Mr. Lee Myung Bak Former President of South Korea	Mr. Jean-Pierre Raffarin Former Prime Minister of France	Mr. Carlos Magariños Former UNIDO Director-General and Global Chairman of GASME	Mr. Bao Yujun Former Vice Chairman of All-China Federation of Industry & Commerce
Mr. Chen Zhongchao Deputy Mayor of Ningbo City	Dr. Sebastian Paust Board Member of German Society for International Cooperation (GIZ) GmbH	Mr. He Weiwen Expert on Current Issues, Ministry of Commerce and Former Economic and Commercial Counselor at Chinese Consulate General in New York	Mr. William Spitler Former Director of New York Center of U.S. Department of Commerce and Director of the GASME Board of Trustees
Mr. Cai Zhangsheng Standing Vice Chairman of Zhejiang SME Association	Mr. Yao Guanghui Standing Vice Chairman of Ningbo Entrepreneurs Association	Mr. Chen Guangbiao President of Jiangsu Huangpu Recyling Resources Co., Ltd	Mr. Feng Jun President of Aigo Digital Technology Co. Ltd
Mr. Guo Shuliang Vice President of Shanghai Golden Monkey Group	Mr. Yi Fajiu President of Influence Education Training Group	Mr. Ye Jianwei President of Best Education Internet Technology Co., Ltd	Mr. Chen Dihao President of Hangzhou Very Effective Culture Creativity Co., Ltd

The Conference Site

Meeting with President Lee Myung Bak

Meeting with Mr. Jean-Pierre Raffarin

Company Visits