SMEs in China: 2023 Policy Environment Report

In recent years, the policy environment for small and medium-sized enterprises (SMEs) in the People’s Republic of China has undergone a significant transformation. Every year, the EU SME Centre’s Advocacy Platform together with European Union Chamber of Commerce in China set out to provide via the Policy Environment Report an overview of the most significant developments affecting SMEs operating in the country.

SMEs constitute an overwhelming majority of the enterprises in China and are key to its economic development. Around 50 per cent of the nation’s tax revenue and 60 per cent of China’s gross domestic product (GDP) come from SMEs. In 2022, the total number of micro, small and medium-sized enterprises in China exceeded 52 million.

In the EU, like in China, SMEs are the backbone of the economy. In the non-financial business sector, they account for 99.8 per cent of all enterprises, more than 65 per cent of total employment, and 53 per cent of overall value added. The European Commission estimates that around 600 000 European SMEs engage in international trade beyond the Single Market.

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(Complete report: create an account)