China’s Economic Resilience Bolstered by Over 60 Million Small and Medium-Sized Enterprises

China’s small and medium-sized enterprises (SMEs) are proving to be a crucial pillar of the nation’s economic strength. The 20th China International Small and Medium Enterprises Expo (“china Expo”) concluded on June 30th, 2025, with over 10,000 buyers securing deals worth over 100 billion yuan, highlighting the sector’s dynamism.

The Ministry of Industry and Facts Technology reported that China had 61.226 million registered enterprises by the end of 2024, with SMEs exceeding 60 million, marking a 3.6-fold increase since 2012. These enterprises are not only showcasing “Made in China” products globally but are also injecting vitality into the domestic economy.

The Vital Role of SMEs in China’s Economic Landscape

SMEs are the bedrock of China’s economic resilience due to their sheer number and widespread presence across various sectors. In the first five months of 2025, SMEs above designated size saw an 8.0% year-on-year increase in added value, with 28 out of 31 major manufacturing categories experiencing growth.These enterprises are deeply embedded in traditional industries like food, clothing, housing, and transportation, while also actively participating in emerging and future industries [1].

Did You Know? SMEs contribute over 60% of China’s GDP and 80% of employment,making them essential for economic stability [2].

Their flexible operating mechanisms and keen market insights allow them to meet diverse market demands, fostering a rich and diverse economic ecosystem. From local shops to high-tech startups, SMEs are driving economic vitality.

SMEs as Pioneers of Technological Innovation

China’s smes are reshaping the global industrial landscape thru specialization and innovation.The country has fostered 140,000 specialized and innovative “little giants” that are deeply integrated into key global industrial chain links. At the China Expo, advancements like high-speed cooperative robots and precision surgical robots demonstrated the shift from scale advantages to technology empowerment.

Li Lecheng,Minister of the ministry of Industry and Information Technology,noted that over 60% of these “little giant” enterprises are involved in basic industrial fields,nearly 80% are in key industrial chain links,and 90% support at least three well-known domestic and foreign enterprises. They actively participate in core technology research and major projects like “Shenzhou,” “Chang’e,” and “Jiaolong.”

Pro Tip: Specialization and innovation are key for SMEs to thrive in competitive markets, enabling them to break technology monopolies and fill domestic gaps.

With the rapid growth of technology, more SMEs are focusing on specialization, precision, and innovation, becoming “little giant” enterprises with unique skills. In emerging industries like artificial intelligence and the low-altitude economy, companies such as Hangzhou’s “Six Little Dragons” are making significant strides.These technological breakthroughs provide solid guarantees for the security and stability of China’s industrial and supply chains, driving industrial upgrading and high-quality economic development.

Connecting “Made in China” to the Global Market

smes, with their flexible innovation and rapid response capabilities, are becoming vital links in the global industrial chain. Chenyang clever industrial manufacturing companies have established joint venture factories in Saudi Arabia, localizing production and introducing Chinese intelligent manufacturing standards to the Middle East market. Dongguan industrial robot companies have also secured orders from European customers at the China Expo,showcasing the shift from low-cost competition to core technological competitiveness.

This connection not only conveys goods but also represents a comprehensive upgrade of “Made in China,” emphasizing value, technology, and standards.Specialization and innovation are becoming key themes in international exhibitions, with smes playing a central role in reshaping the industrial chain.

the Future of SMEs in China’s Economy

The future competition in the global economy will not only be about “big and strong” but also about “small and resilient.” Continued support for SMEs is essential to improve their innovation capabilities and core competitiveness, laying a solid foundation for China’s economic resilience and injecting stronger impetus into high-quality economic development.

What innovative strategies can SMEs adopt to further enhance their competitiveness in the global market? How can government policies better support the growth and development of these vital enterprises?

disclaimer: This article provides general information and does not constitute financial or investment advice.