SMEs fuel China's innovation edge, GDP

China has now cultivated over 600,000 high-tech and innovative small and medium-sized enterprises, positioning them as central engines for high-quality growth and global industrial resilience, officials and experts said.

Minister of Industry and Information Technology Li Lecheng said China remains steadfast in empowering SMEs as indispensable pillars of innovation, employment, and open international cooperation.

By the end of 2024, China's total SME population exceeded 60 million, with revenue from industrial SMEs reaching 81 trillion yuan ($11.2 trillion), Li said at the 20th China International Small and Medium Enterprises Fair which concluded in Guangzhou, Guangdong province on Monday.

Beyond the landmark figure of 600,000 tech-innovative SMEs, Li highlighted the significant rise of 14,600 "little giant" enterprises — elite SMEs that typically specialize in niche sectors, command high market shares and boast strong innovative capacity.

Li advocates vigorously for a global level playing field by dismantling institutional barriers, strengthening intellectual property protection, and opposing unilateralism and protectionism. This ensures SMEs worldwide can compete fairly, access resources equally, and integrate seamlessly into global value chains.

Moreover, policies are needed to accelerate SME specialization and upgrading toward "high-end, digital, green, and international" development. This includes focused support for building specialized industrial clusters and systematically enhancing core innovation capabilities, the senior official said.

Furthermore, Li emphasized the critical need to deepen global SME collaboration. "We must expand the breadth and depth of international SME partnerships," he urged, highlighting their essential role in boosting the efficiency, resilience, and vitality of global supply chains. He called for concerted efforts to build multilevel, results-oriented cooperative ecosystems.

Zou Ciyong, a deputy to the director general of the United Nations Industrial Development Organization, or UNIDO, underscored China's exemplary SME-driven economic model.

"SMEs are China's core engine — driving 60 percent of GDP, 50 percent of tax revenue, 60 percent of exports, 80 percent of urban employment and 70 percent of technological innovation," Zou said.

"UNIDO regards China as a critical partner in advancing the global SME agenda. Leveraging its vast network of SMEs and robust industrial foundation, China has demonstrated how policies and strategies, innovation, and digital transformation can turn SMEs into drivers of inclusive and sustainable growth," Zou added.

Zou highlighted the decades-long strategic partnership between UNIDO and China, significantly anchored by platforms like the China International Small and Medium Enterprises Fair. He described the expo as a vital conduit for "global dialogue, business matchmaking, policy exchange, and South-South cooperation", enabling the sharing of best practices and connecting developing countries' SMEs to international markets and innovation networks.

Huang Fuwei, deputy head of Guangzhou Municipal Industry and Information Technology Bureau, said: "Guided by the needs of SMEs, we will help enterprises reduce costs, boost efficiency, increase revenues and profits, and achieve innovative development."

Huang said Guangzhou will continue advancing pilot programs to create exemplary cases of SME digital transformation. The city will explore promoting digital upgrades through a "group purchasing model" so as to accelerate the application of AI products in SMEs' digital transformation processes.

Lin Xiuqi, client manager at China Mobile Guangdong, said: "We remain committed to driving digital transformation for SMEs. Through continuous innovation and practice, we provide comprehensive, efficient, and intelligent digital solutions for enterprises."