China will take active measures to encourage the development of small and medium enterprises (SMEs) and venture capital (VC), Vice-Premier Zeng Peiyan said Wednesday in Beijing.

Addressing the first China-US Forum on VC & SMEs, Zeng said China and the United States enjoy great potential and bright prospects in further strengthening their cooperation in the spheres of SMEs and VC.

Since adopting the reform and opening-up policy, Zeng said, China has witnessed the rapid development of SMEs, which now account for 99 percent of its total enterprises, employ 75 percent of China's workers, generate more than 60 percent of its export volume and over 45 percent of its tax revenue, and create 70 percent of China's newly-added industrial output and over 55 percent of its GDP.

"The SMEs have become an essential basis of China's economic growth, market prosperity and employment increase," acknowledged the vice-premier.

The Chinese government has for a long time taken a range of incentive policies to support the development of SMEs and VC, he said, listing the employment of taxation policies and establishment of special fund for SMEs as examples.

Zeng said that while encouraging SMEs to list in overseas markets, China in May set up an SME board in the Shenzhen Stock Exchanges. its government will further support the development of SMEs, expand the financing channels, and gradually promote VC and the construction of growth enterprise market.

Pertaining to China's economic situation, Zeng said the Chinese economy is faring well generally, and macro control is making good progress. China will continue to rationally control the investment scale, strive to ease pressures of supply of coal, electric power,oil and transport.

Meanwhile, he noted, China will support the normal growth of well-performing enterprises, support projects in conformity with the national industrial policy and market access requirements, support the development of weak links like agriculture, infrastructure, ecology, social undertakings and high-tech industries, and continue to promote the development of China's vast western regions and rejuvenation of its northeastern rust-belt industrial bases.

"The measures will all provide a good environment for the development of SMEs," he said.

Meanwhile, Zeng acknowledged that China has entered the new phase of building a fairly well-off society in the new century, during which it will implement the scientific development concept to realize the all-round, coordinated and sustainable development.

"That will not only help raise the living standard of the Chinese people, but contribute to the world prosperity and stability, and provide room for the development of domestic and foreign SMEs and VC."

Highly complementary in economy, China and the Untied States have recorded rising trade volume, Zeng said, who also expressed the belief that as long as they keep to the guidelines of mutual respect and mutual benefit, and constantly explore cooperation spheres and enrich their cooperation contents, they would surely see their trade and economic cooperation further growing.

Prior to the opening ceremony of the two-day forum, co-hosted by China's State Development and Reform Commission and the US Department of Commerce, Zeng met with US Secretary of Commerce Don Evans and other US delegation members.