A leading SME lobby group says the EU-China Managers Exchange and Training Programme (METP), which brings over 100 European businessmen to China for a year-long language and cultural exchange, is an inefficient way of spending public money.
Luc Hendrickx, head of external relations at lobby group UEAPME, said the funding could be put to better use by instructing trainers in business groups, who could then share this expertise with their members across the EU.
Speaking at the launch of the fifth call for applications to the METP, he noted that public money is limited and needs to be targeted better. "This programme is for the happy few. I'm glad for those who can benefit but it cannot be claimed that this is for SMEs," he said.
The scheme, which began in 2007 and has been extended until at least 2011, pays for intensive seven-month language courses at a Chinese business university, regular trips to major industry hubs in China, and gives participants €1,000 per month to cover living expenses.
The METP has so far helped around 320 European and 200 Chinese business managers and entrepreneurs to take part in the exchange programme. Chinese participants spend time in Manchester, Paris and Brussels and are paid €1,650 per month.
The programme is a formal intergovernmental scheme and the EU contributes €17 million while China contributes €6 million.
Europeans who have taken part in the METP say it has been hugely beneficial and helped them to understand Chinese customs and make crucial business contacts.
The scheme is specifically designed to cater for SMEs who do not have access to the kind of support available to large multinational corporations.
Scheme not fit for purpose
However, Hendrickx said that while the objective was admirable, most small businesses cannot benefit from the funding.
"To be honest, if you ask me whether this is interesting for SMEs, I would have to say 'no, not at all'. The average SME cannot send an employee to China for a year," he said, adding that a three-week visit would be sufficient for most businesses, with supplementary part-time language training.
He said the average small firm has just six employees and many find that they can work with Chinese partners in English or by using interpreters.
Most SMEs are not going to establish a subsidiary in China, according to Hendrickx, but many require practical information on legal issues such as protecting their intellectual property.
Franz Jessen, who heads up the EU executive's China office, defended the programme, saying the European Commission put together the METP based on experience in the field.
"It's not something we dreamed up out of the blue, it's built on years of experience," he said, pointing to the Commission's work in China since the 1980s.
He said it was impossible to meet all the needs of SMEs given the limited resources available, but added that "participants feel they have benefited".
"I realise for SMEs this can be a costly affair which is why we offer a stipend to help cover their costs," said Jessen.
Stefan Hell, who runs the project in Beijing, said the training scheme covers legal issues, including protecting intellectual property, and he added that the EU has an IPR Help Desk to help guide European firms through the Chinese patent regulation system.
Chinese and European leaders agreed earlier this year that a European SME Centre will open in Beijing, although the contract to run the new office has yet to be awarded. It will act as a focal point for European firms working in China or with Chinese partners.
Age and academic qualifications required
The METP is open to managers at European SMEs and entrepreneurs aged between 26 and 40 years, with at least two years of management experience. They must also have a strong academic background and a compelling business idea.
The age and academic limitations were criticised by some stakeholders, particularly because many entrepreneurs are self-starters who did not necessarily graduate with higher degrees.
Hell said the business plans, which are assessed by a panel of experts, are the key element of the selection criteria, and that the programme is open to all industries.
The application deadline for the fifth intake of the METP is 5 January 2010.
