China's small and medium-sized privately-run enterprises (SME) are set to expand co-operation with their Italian counterparts.

"We should learn the advanced experience and draw on the successful development patterns of Italian SMEs through co-operative expansion," said Hong Shaoji, an official from the organizing committees of CISMEF.

And the Italian Government has introduced advanced and highly efficient systems to help its SMEs expand, said Hong.

Many Italian banks and other financial groups have detailed and preferential polices to support and help SMEs overcome their difficulties in raising funds.

Meanwhile, Italy also has many guarantor companies that act as guarantors for SMEs to apply for government and bank loans and directly raise funds from Italy's stock markets and the second board markets, Hong said.

"All these would provide valuable experiences and lessons for Chinese governments at all levels to learn from," Hong said.

Addressing a press conference in Guangzhou, capital of Guangdong Province, on Tuesday morning, Hong, who is also the vice-director of the Technical Renovation Department under the Administrative Bureau of SMEs of Guangdong Provincial Economic Commission, said co-operation between SMEs from China and Italy has great potential.

For this purpose, the Sino-Italian Fair for Small and Medium Enterprises (SIFSME) will take place in conjunction with the 3rd China (Guangzhou) International Small and Medium Enterprises Fair (CISMEF) in Guangzhou between September 15 and 18.

It is the first time SIFSME has been held during the annual CISMEF, and it aims to help Chinese SMEs expand co-operation with their overseas counterparts, according to Hong.

He hoped Chinese SMEs would seize the opportunities to expand their co-operation with Italian SMEs during the SIFSME and further upgrade their own capabilities.

"Italian companies have rich experiences and advanced technologies and equipment in the leather, shoe making and garment industries, while Chinese SMEs have their own advantages in the production of household appliances, textiles, silk, metal and daily use articles," said Hong.

He urged Chinese SMEs to draw on Italian SME's advanced experiences to overcome their own weaknesses and try to catch up with their Italian counterparts in the following years.

Hong also urged local SMEs to invest more in technological innovation and import more advanced technologies and equipment in the years ahead to further improve their product quality.

"High-quality products will help Chinese SMEs increase their presence in the world market in the future," Hong said.

He added that Italian products were competitive in the world market because they are of a high quality.

SMEs are playing an important role in Italian economic development. More than 98 per cent of the companies in Italy are SMEs that have contributed to Europe's many famous brand names. And "Made in Italy" has a very good reputation around the world.

And the Italian SMEs are also annually contributing more than 50 per cent of the country's total export volume.

But in Guangdong Province, which has registered a large number of SMEs, the export volume from SMES accounts for no more than 10 per cent, Hong said.

Hong hopes "Made in China," or "Made in Guangdong" will be able to compete with "Made in Italy" in the future.

Editor: Yan