China unveils five-year roadmap to nurture 'little giants' and SME innovation
China's 10-agency plan backs SMEs and 'little giants' with funding, R&D access, and a 2030 growth target.
China has published a comprehensive five-year strategy to bolster small and medium-sized enterprises (SMEs), with a particular focus on its 'little giants' — smaller, highly specialised firms seen as vital to technological self-reliance. The plan, jointly released by ten central government agencies, aims to strengthen job creation and innovation as part of Beijing's broader push for economic growth and reduced dependence on foreign technology.
The document urges local authorities to help SMEs in emerging sectors join major national science and technology programmes. It also calls for government funds to be used to steer more private capital toward early-stage ventures, reinforcing China's wider drive to accelerate digitalisation and artificial intelligence adoption.
"SMEs are an important force for driving innovation, promoting employment and improving livelihoods, and an important source of economic vitality and resilience," the plan states.
The initiative comes amid intensifying competition with the United States, which has sharpened China's focus on supply-chain security and homegrown innovation. According to OECD data cited in the plan, SMEs contribute roughly 60% of China's economic output, 70% of its technological innovation, 80% of urban employment, and half of its tax revenue.
By 2030, the plan sets targets to raise revenue per employee at SMEs by about 15%, increase the number of 'little giants' to 22,000, and expand national SME industrial clusters to 600. Annual research and development spending by industrial SMEs is expected to grow by more than 8%.
Priority sectors for startup support include new energy, new materials, robotics, quantum technology, brain-computer interfaces, and embodied AI. The plan also promises to expand government-backed venture funding and encourage 'patient capital' — long-term investment that tolerates slower returns.
To improve financing access, China will increase bank lending to SMEs and ease their entry into bond and equity markets. A second phase of the national SME development fund has also been announced to channel more capital into smaller firms.