21/09/26
By AfterPost
By AfterPost China Desk
China is fundamentally changing how it supports its small and medium-sized enterprises — from a passive, application-based system to a proactive hunt for future champions, the Ministry of Industry and Information Technology (MIIT) announced Sunday.
In a roundtable with eight cutting-edge SMEs on Sunday in Beijing, MIIT said it will "accelerate efforts to identify and nurture promising SMEs, shifting from waiting for companies to apply for support to proactively seeking out firms with strong growth potential." aeb2
The Big Shift: From "Apply" to "We Found You"
This is not just wording. Since January 2026, MIIT has revised its management measures for "quality" SMEs, introducing a proactive discovery mechanism that uses big data across supply chains, intellectual property filings, talent development, and financing to spot hidden gems.
Previously, an SME had to apply to be recognized as a "specialized, sophisticated, novel and unique" (专精特新) enterprise. Now, the government will find YOU.
The roundtable included firms from artificial intelligence, commercial spaceflight, and quantum technology — a clear signal of where Beijing is looking. MIIT said it will improve mechanisms to foster SMEs that use specialized and sophisticated technologies to produce novel and unique products, and strengthen the identification of promising start-ups, particularly companies focused on technological innovation and product development.
The 2026-2030 Master Plan
This Sunday announcement implements a bigger plan issued earlier this month. China issued a plan to promote high-quality development of SMEs during 2026-2030, jointly by 10 government departments including MIIT.
*By 2030 targets:*
- *Scale + Quality:* Per-capita operating revenue of major SMEs to grow cumulatively around 15% over five years
- *Innovation Explosion:* Average annual growth in internal R&D expenditure by major industrial SMEs targeted at OVER 8%
- *Little Giants Army:* Number of "little giant" firms — the elite niche manufacturers with cutting-edge tech — to reach 22,000 (from 17,600 currently) and national-level SME industrial clusters to reach 600
- *Funding:* Launch second phase of national SME development fund, greater support for venture capital, and prepare more SMEs for listing
The plan also outlines seven key tasks: stabilizing businesses and employment, strengthening enterprise cultivation, accelerating digital, intelligent and green development, promoting coordinated development, improving supply of production factors, strengthening the SME service system, and enhancing legal safeguards.
Crucially, it promises to largely put in place a sound long-term mechanism for resolving payment arrears owed to SMEs — a chronic complaint — and broadening access to diversified financing.
What MIIT Wants SMEs To Do
MIIT didn't just promise help. It gave orders:
"Companies are also encouraged to pursue specialized and innovative development, increase research and development investment, and seek breakthroughs in key and core technologies."
The ministry urged SMEs to focus on core businesses, improve products and processes, and address bottlenecks and weak links in industrial and supply chains to enhance resilience and security.
This aligns with China's broader push for supply-chain self-reliance. China has already cultivated over 140,000 specialized and innovative SMEs and established more than 1,780 public service institutions.
Why This Matters Now
SMEs are 90% of Chinese enterprises, 80% of urban jobs. But many are struggling with payment delays from big firms, financing gaps, and US tech restrictions. By proactively hunting for innovators in AI, quantum, and space, Beijing is building its own Silicon Valley bench — not in one city, but in industrial clusters nationwide.
The message is clear: If you are building hard tech in China, the state will now come knocking before you even apply.
#ChinaModernization #SMEs #MIIT #ChinaEconomy #LittleGiants
Source: Xinhua, China Daily, Global Times, MIIT — Sep 21, 2026