On October 14, 2023, the State Council Information Office of China held a press conference to discuss the increased support for small and medium-sized enterprises (SMEs). According to the Ministry of Industry and Information Technology (MIIT), the sector is set to benefit from a new wave of policy incentives targeted at specialized and innovative SMEs.

During the conference, MIIT Vice Minister Wang Jiangping highlighted that there are currently 141,000 specialized and innovative SMEs in China, including 14,600 specialized “little giant” companies. Looking ahead, the MIIT, in collaboration with relevant departments, aims to promote the high-quality development of these enterprises.

In terms of technological innovation, the MIIT has teamed up with the Ministry of Finance to launch a new round of support policies. This year, over 1,000 key “little giant” enterprises will receive central fiscal support to cultivate new momentum, tackle new technologies, develop new products, and enhance their industrial chain capabilities. Additionally, through specialized relending projects, more than 1,100 “little giant” companies will be supported in their technological upgrades and equipment renewals. A plan to promote the industrialization of patents will also be implemented, offering rapid pre-examination and rights confirmation services for qualifying specialized SMEs.

Regarding digital transformation, the MIIT has recently selected a second batch of pilot cities for SME digital transitions, with a central financial allocation of 2.7 billion yuan (approximately $380 million) and local fiscal investments exceeding 12 billion yuan. Next year, additional pilot cities will be chosen, with expectations to support over 40,000 SMEs across the country in enhancing their digital capabilities.

On the financial support front, the MIIT, along with the China Securities Regulatory Commission, plans to launch the third batch of special boards for regional equity markets, specifically for specialized and innovative SMEs. A strategic cooperation agreement has been signed with the Beijing Stock Exchange to further facilitate financing channels for these enterprises. Moreover, the MIIT will initiate “One Chain a Month” financing promotion campaigns, targeted at key industrial chains, to help financial institutions make precise connections with SMEs in the sector.

In terms of service guarantees, there’s support for pilot projects that allow specialized and innovative SMEs to conduct independent reviews for senior professional titles. Local governments are also encouraged to provide special support around talent settlement, housing, and children’s education for these businesses. Furthermore, a comprehensive service network for SMEs has been established, spanning national, provincial, municipal, and county levels, to bridge the “last mile” in policy, technology, management, and service resource implementation.