315. China thanks the co-sponsors for summarizing the item of public-private collaborations in innovation in 2019 and thanks Canada for presenting a new proposal of making MSMEs competitive through trademarks.
316. As for the new proposal, China would like to highlight the importance of MSMEs to our economy. By the end of 2018, the number of MSMEs in China had exceeded 30 million, and the number of individually-owned business entities exceeded 70 million, contributing to more than 50% of our country's tax revenue, more than 60% of GDP, more than 70% of technological innovation, and more than 80% of the employment. MSMEs have played a crucial role in promoting China's economic growth, innovation, creating employment opportunities and improving people's livelihood. So in the new era, China will continue to take measures to make MSMEs competitive, especially to enhance their innovation abilities. Some of our major measures are as follows.
317. First, China has built a legal system to improve the general business environment in which MSMEs operate. In 2002, China adopted the "Small and Medium Enterprises Promotion Law", which requires government at all levels to create a favourable environment for the development of MSMEs, especially in terms of capital, technology, and human resources. In 2017, China revised the "Small and Medium Enterprises Promotion Law". The revision aims to support MSMEs to expand sources of financing and protect their legal rights in a sounder way. For example, Article 9 of the SME Promotion Law encourages financial institutions to provide loans to MSMEs using IP as their collaterals or guaranties. In 2019, the State Council issued the Guiding Opinion on Promoting the Healthy Development of SMEs. The Guiding Opinion clearly requires the government to improve the innovation and establishment environment for MSMEs, better protect the intellectual property rights of MSMEs and guide specialized development of MSMEs. Again, the Guiding Opinion emphasizes the role that IP can play in increasing SME's credibility of borrowing money from financial institutions. Beijing and other provinces also enacted local implementation plans.
318. Second, China promotes the IP awareness of MSMEs through establishment of intellectual property training centres for MSMEs in eastern and southern part of the country, where a large number of SMEs are located. The training centres provide intellectual property courses, workshops and other IP-related capacity building activities to MSMEs, and support MSMEs to enhance their IP creation, utilization, protection and management abilities. The Nanhai training centre in Guangdong Province in southern part of China produced a publication entitled "Patent Management Practices for MSMEs" to provide further guidance. Some other provinces designed trademark courses for MSMEs based on practical needs of local MSMEs.
319. Thirdly, China enhances IP enforcement for MSMEs and facilitates alternative dispute resolution mechanisms for MSMEs. China launches initiatives targeting MSMEs and encourages MSMEs to report IP infringement to authorities and claim their legitimate rights. In addition, we established some IP infringement mediation centres to resolve IP disputes encountered by MSMEs in a faster and less costly way. For example, we set up specialized mediation centres for furniture, electric lights, pens and other small commodities that MSMEs in China tend to manufacture.
320. Thank you all for listening to my sharing of national experience. China hopes to hear more about Members' measures.
