An essential part of the national economy, small and medium enterprises from both China and the United States are seeking more space for cooperation in an attempt to reduce frequent trade frictions between the two nations.

The small and medium-sized enterprises from China and the United States should further intensify an all-around cooperation in future for there still remains vast space for the collaboration, said Craig Allen, counsellor of the US embassy to China in Wuhan Friday.

The official made the remarks at the founding ceremony of the Wuhan Office of the Sino-US international partner network program, which is launched as a bridge between the small and medium enterprises from the two countries for exchanges and communication.

According to the latest survey by the US-China Business Council (USCBC), companies from the United States, especially those of small and medium sizes, have benefited from China's entry into the WTO.

Today US companies enjoy much more chances of market access than five years ago, said Allen.

Generally speaking, China has lowered its taxes on the imported goods by nearly 40 percent and lifted the import permission system and quotas in many fields. US companies are currently allowed to put their capital in many China's industries, which were forbidden in the past.

China became the third largest exporting market for the United States during the first six months of this year.

In 2004, the Sino-US trade exceeded 230 billion US dollars, increasing by nearly 50 times as against 1949.

The bilateral trade keeps growing at a rapid speed since China was accepted as a WTO member in 2001.

The official said China's overspeed export growth brings about huge unfavorable trade balance to the United States, which amounted to 80.3 billion US dollars in 2004.

"This triggered a series of trade friction, especially in the field of textile," said Allen, adding that it has already drawn great attentions from the governments of both sides.

"The problem is many China's enterprises do not know what they should sell to the United States and the same is true with their US counterparts."

In both China and the United States, the small and medium enterprises contribute much to their national economy, said Gao Yan, vice chairwoman of the China Council for the Promotion of International Trade.

Though the trade between the two countries rapidly has been developing during the past few years, cooperation between their small and medium enterprises is insufficient, said Gao.

Along with the economic globalization, strengthening the connection and cooperation between the small and medium-sized enterprises in China and the United States will not only be conducive to alleviating the trade friction but also promoting the prosperity of the world economy, said Allen.

The China Council for the Promotion of International Trade signed a letter of intent with the US Department of Commerce and US Small Business Administration last year to boost the communication between the small and medium enterprises in both countries and to ease the trade friction.

This July, China and the United States signed a cooperative project memo, aimed to launch the Sino-US international partner network program in China's 14 cities.

Allen said US companies will acquire information from the offices in the cities so as to find their business partners in China.

"Hopefully the small and medium enterprises from both sides will further their cooperation through this program, so that the Sino-US trade will see an upgrade in various fields," Gao said.

(Xinhua News Agency October 15, 2005)