Shanghai Unveils New Action Plan to Boost SMEs

Shanghai has unveiled a new action plan featuring 21 measures to promote the high-quality development of small and medium-sized enterprises (SMEs), focusing on financing, cost reductions, innovation and market access.

The plan was introduced at a municipal government press conference on Thursday as part of the city's efforts to improve its business environment and support small businesses.

Shanghai has cultivated 22,000 innovative SMEs, 14,000 specialized and sophisticated SMEs, and more than 1,000 specialized and sophisticated "little giant" enterprises.

The action plan sets out nine major initiatives covering 21 tasks to address longstanding challenges facing SMEs, including financing difficulties, overdue payments and operating costs.

To improve access to financing, Shanghai will encourage banks to increase lending to sci-tech-oriented and traditional SMEs, expand first-time loans and credit-based financing, and improve government-backed financing guarantees.

The city will also strengthen efforts to tackle overdue payments. Large enterprises will be urged to disclose outstanding payments to SMEs in their annual reports, while the management of commercial bills and electronic vouchers will be further regulated.

To reduce operating costs, Shanghai will continue implementing national tax and fee support policies and a phased one-percentage-point reduction in employers' contribution rates for employee medical insurance. In addition, SMEs will be encouraged to use industrial land through flexible arrangements, including leasing and lease-to-own models.

Innovation is another major focus. Shanghai plans to expand SMEs' access to major scientific research facilities, support the commercialization of technological achievements and develop more pilot testing platforms for prototype trials, process validation and small-batch production.

The city will also accelerate transformation and upgrading through two tasks: a digital-intelligent leap and quality innovation in consumer services. It will help SMEs digitalize and adopt artificial intelligence and pilot retail innovation, while guiding smaller retailers toward differentiated development.

To create a fairer business environment, the plan calls for equal access to government procurement and public project bidding, alongside measures to prevent discriminatory practices.

Shanghai will also encourage cooperation between large companies and SMEs, promote overseas expansion, and provide greater access to trade and investment channels, legal services and cross-border financing.

Additional measures will focus on lowering commercial electricity costs, supporting talent development, improving intellectual property protection and strengthening legal services.

By 2028, Shanghai aims to further improve the quality, innovation capabilities and operational performance of its SME sector, creating a more supportive environment for business growth.