In a bold move to position itself at the forefront of global industrial innovation, Shanghai has rolled out 20 new measures aimed at accelerating the growth of small and medium-sized enterprises (SMEs) that dominate niche sectors and lead in innovation. Announced on Friday, this ambitious policy package underscores the city’s commitment to building a modern industrial system and nurturing the “new quality productive forces” vital for China’s next wave of industrialization.
The city’s vision is clear: double the number of high-potential SMEs to 20,000 by 2030 , aligning with the goals of the 15th Five-Year Plan (2026–2030) .
To fuel this exponential growth, Shanghai will deploy robust incentives :
– SMEs in fields like industrial tech, internet, software, and IT services will receive a one-time reward of 500,000 yuan ($68,472) when their annual revenue exceeds 20 million yuan for the first time.
– “Little Giant” enterprises — SMEs recognized for strong growth and innovation — will earn up to 500,000 yuan if they sustain 20% annual revenue growth over two consecutive years.
To ensure access to long-term capital, Shanghai will mobilize over 100 billion yuan in investment funds by leveraging public initiatives such as industrial upgrading funds and future-oriented capital , while attracting private and social capital to form a comprehensive funding cluster dedicated to supporting cutting-edge SMEs.
The government will also establish a dedicated incubation base to prepare 1,000 SMEs for public listing , offering guidance, policy support, and infrastructure to facilitate IPO readiness.
Shanghai is backing these enterprises not just with funding, but with holistic ecosystem support :
– Lower costs for digital transformation services , utilities , and financing .
– Assistance in setting up innovation hubs , research centers , and engineering labs to drive high-value industrial breakthroughs.
– Enhanced oversight and mentorship , ensuring sustainable and compliant scaling of operations.
Already, over 12,000 industry-leading SMEs call Shanghai home — including 857 recognized “Little Giants” . Together, they have achieved an impressive average annual sales growth of 7.6% , with 5,000 SMEs exceeding 20% net profit growth over the past two years.
Collectively, these businesses hold more than 520,000 intellectual property rights , contributing significantly to national strategic priorities such as commercial jetliners, cruise ships, artificial intelligence large language models, and GPUs .
Shanghai’s industrial ecosystem is rapidly evolving alongside next-gen technologies like embodied AI, 6G, and quantum computing , positioning the city as a launchpad for future-facing enterprises with high growth potential and global ambition.
International expansion is another focal point. Over 2,000 Shanghai SMEs have entered international markets , especially in sectors like intelligent service robotics, NEV components, advanced materials , and basic software . To support this trend, the government has created special outbound investment policies and introduced a roster of 100 professional service providers to guide SMEs through cross-border ventures, particularly in the face of global economic volatility.
“Shanghai is not only scaling its SME ecosystem but also reshaping it to serve the city’s and nation’s most pressing strategic goals,” said Pu Yapeng , Deputy Director of the Shanghai Municipal Commission of Economy and Informatization. The newly announced measures, he noted, are designed to create a pipeline of high-valuation, future-ready enterprises , and cement Shanghai’s status as a global hub for industrial innovation and advanced manufacturing