New measures to boost specialized, innovative SMEs

Shanghai has introduced a series of measures to support the growth of "specialized and innovative" small and medium-sized enterprises (SMEs), with a focus on reducing costs, including tariff-related benefits.

Eligible SMEs will enjoy streamlined processes to become AEOs (authorized economic operators) certified by the Customs, granting them tariff-related support and faster clearance times.

The city government's policy package features 20 specific initiatives across six key areas.

They target high-growth development, innovation, cost reduction, and precision services.

A standout feature is "exemption from application" mechanism, allowing SMEs to automatically enjoy incentives without cumbersome paperwork.

For instance, companies purchasing digital services can receive up to 30 percent of contract value subsidies, while those achieving rapid growth may qualify for rewards of up to 500,000 yuan (US$68,261).

Liu Chongming, of Shanghai HeiHu Technology, noted: "For example, our 800,000-yuan R&D budget was reduced by about 10 percent through government rewards. The new policies have revitalized the market, encouraging SMEs to pursue technological upgrades. This creates significant opportunities for companies like ours, which help SMEs digitize their operations, while also simplifying administrative processes."

Better services

The policy also includes a 400-billion-yuan "specialized and innovative loan" program, with over 200 billion yuan allocated for credit loans and interest subsidies.

Additionally, SMEs investing in green technology or industrial upgrades can access grants covering up to 10 percent of project costs, capped at 100 million yuan for major initiatives.

To foster innovation, Shanghai will support SMEs in developing cutting-edge products like AI robots and integrated circuits, with opportunities to feature on municipal recommendation lists. The city will also organize matchmaking events to connect SMEs with larger corporations for supply chain collaboration.

With these measures, Shanghai aims to double its pool of "specialized and innovative" SMEs to 20,000 by the end of the 15th Five-Year Plan, reinforcing its role as a hub for high-tech industrialization and global trade.

In addition, supermarket chains in Shanghai are currently negotiating with over 100 suppliers across categories that include food and household goods, creating new opportunities for SMEs transitioning from exports to domestic sales.

Major retailers like Bailian Group's Lianhua Supermarket and Yonghui are actively assisting export vendors in finding domestic distribution channels, offering subsidies and targeted promotional campaigns.

E-commerce giant JD.com has pledged 200 billion yuan to source locally produced goods originally intended for export, helping manufacturers redirect their sales to domestic consumers.