China to support 'little giants' and other emerging companies in plan to boost jobs and innovation
MCHI•China unveils five-year SME support plan
BEIJING, Sept. 3 (Reuters) - China made public a five-year plan for "little giants" and other emerging companies on Thursday, promising support for job creation and innovation as it seeks to drive economic growth and technological independence.
Jointly issued by 10 central government agencies, the plan urges local authorities to support small and medium-sized companies in emerging sectors. It will enable them to participate in major national science and technology programmes and use government funds to guide more capital into early-stage companies.
It reinforces Beijing's broader push to accelerate digitalisation and AI adoption.
SMEs seen as key to innovation and employment
"SMEs are an important force for driving innovation, promoting employment and improving livelihoods, and an important source of economic vitality and resilience," the plan said.
Amid rivalry with the United States, China has sharpened its focus on technological self-sufficiency and supply-chain resilience and provided particular support for smaller specialised companies it calls little giants.
Small and medium-sized enterprises account for about 60% of China's economic output, 70% of technological innovation, 80% of urban employment and half of tax revenue, according to the OECD.
2030 targets include more little giants and higher R&D spending
According to the plan made public on Thursday, China aims by 2030 to raise revenue per employee at SMEs by about 15%, increase the number of little giants to 22,000, expand national SME industrial clusters to 600 and lift annual R&D spending by industrial SMEs by more than 8%.
The plan pledged greater support for startups in strategic sectors including new energy, new materials, robotics, quantum technology, brain-computer interfaces and embodied AI, while expanding government-backed venture funding and "patient capital", or long-term investment.
