"Buyers from the Middle East and European countries showed great interest in it as soon as the advertisement was out," said Wang. "We are now trying our best to research and develop the latest products to make it easier to carry."

With a doctorate in material science and engineering, Wang prefers to R&D new products that can better meet the market requirements.

In fact, "innovation" seems the hottest word at the Fair.

Wang's views are echoed by Feng Jun, President of Beijing Huaqi Information Digital Technology Co. Ltd. Aigo, the hi-tech product brand of Feng's company, is popular now in Chinese digital product market. "Our company won't be the leading digital technology company in China without innovation," said Feng.

As Aigo's latest hi-tech product, the Ai-pen made a stunning debut at the forum, when Feng touched the page of a book with the "pen" and it could "read" in either Chinese or English immediately. According to Li Weiwei, Program Manager of Ai-pen, it was the four-year effort and wisdom of the innovation team. It has been highly praised by Jacque Rogge, President of the International Olympic Committee, and reserved by the Olympic Museum in Lausanne, Switzerland.

"Our next goal is to make the Ai-pen as a convenient e-book that is also available on the mobile phone," Li told Beijing Review.

Rosy outlook ahead

The growing significance of SMEs in China's economy is hard to ignore. Nowadays, the output value of China's SMEs accounts for over 60 percent of the country's GDP, and they provide more than 75 percent of employment opportunities in rural areas.

"The SMEs in China have achieved rapid, healthy and sustainable development in the past two decades," said Ou Xinqian, Vice Minister of the National Development and Reform Commission. "Currently, their number accounts for over 99 percent of all enterprises. The development of SMEs has contributed more and more to China's economic growth."

Several rules and regulations, that favor the development of SMEs, have also been issued nationwide. Moreover, since the end of 2004, the Chinese government has signed numerous SME-based memorandums of understanding with major economic powers, including Germany, South Korea, France, Italy and the United States. According to Ou, all of these agreements are now in the execution stage.

The ASEM Trade & Investment Fair on SMEs was proposed by Chinese Premier Wen Jiabao in 2004, and endorsed by all the ASEM members at the 6th Asia-Europe Meeting held in Helsinki, September 2006. This year's Fair, according to Yao Shenhong, spokesperson of the Ministry of Commerce, aims to address real problems faced by SMEs on the one hand, and on the other hand provide a platform for communication and cooperation among ASEM members, business people as well as government officials; suggestions for the development of SMEs will be solicited, and a report submitted to the ASEM SME Ministerial Meeting to be held in Beijing on October 30.

During the ASEM SME Ministerial Meeting, Vice Premier Wu Yi emphasized that stimulating the development of SMEs was a winning strategy that could realize great accomplishments. The Beijing Declaration, a declaration concerning SME-related cooperation, was issued after the meeting. The declaration suggested strengthening exchanges on financing policies for SMEs, promoting innovation for financial products and services, and improving investment mechanisms for starting businesses. It also encouraged Asian and European SMEs to engage in development and cooperation in the fields of technology, investment, economic and trade exchanges, personnel training and IT application. It said SMEs should also "pay attention to environmental protection in their production and business activities, fulfill their social responsibilities, improve working conditions and protect employees' rights."