China upgrades support measures to boost SME potential

BEIJING, Jan. 17 (Xinhua) -- China's Ministry of Industry and Information Technology (MIIT) has revised its management measures for the cultivation of "quality" small and medium-sized enterprises (SMEs), officially integrating tech-based firms into its development pipeline.

The updated cultivation management measures, effective from April 1, 2026, introduce a proactive discovery mechanism to identify high-potential SMEs by analyzing data across sectors such as supply chains, intellectual property, and talent development.

In addition, the standards for "quality" SME recognition have been refined, with a focus on international market share, R&D investment, and intellectual property rights.

Local governments are encouraged to leverage financial, tax, and industrial policies to provide tailored support to SMEs based on their specific needs and development stages, according to the measures.

The move reflects China's ongoing efforts to boost SMEs, which are seen as key drivers of job creation, economic growth, and innovation.

The country has already cultivated 17,600 "little giant" enterprises, and supported over 600,000 tech and innovative SMEs since the start of its 14th Five-Year Plan.

An MIIT official stated that the ministry will continue to collaborate with other agencies and local governments to further optimize SME development, ensuring that specialized and innovative businesses continue to grow.