Shanghai has introduced 10 initiatives aimed at supporting small and medium-sized enterprises (SMEs) specialising in core technologies and innovation.

Announced during a recent national SME conference held in the city, the measures focus on strategic sectors like artificial intelligence and low-altitude technology.

The participating companies are working on advanced projects such as laser radars for autonomous vehicles, AI models that create music and images from text, and research into superconducting materials, Shine News reports.

The three-day event, hosted in Zhangjiang, Pudong New Area, brought together national and municipal leaders alongside these innovative firms.

The measures involve creating industrial zones, setting up service centres, and offering financial support, including streamlined access to capital markets and dedicated bank loans with a total quota of up to 400 billion Yuan ($55.5 billion).

China’s Minister of Industry and Information Technology, Jin Zhuanglong noted that more SMEs are collaborating with industries, universities, and research institutions to drive innovation and advance industrial upgrading.

Furthermore, the growth of SMEs is expected to enhance the supply chain for Shanghai's key strategic industries, including artificial intelligence, biomedicine, and semiconductors, according to industry officials.

Specifically, Shanghai plans to establish 55 industrial zones and 34 SME industry clusters. Within these zones, the city aims to assist SMEs in reducing costs by up to 15 billion Yuan, covering expenses related to land, electricity, water, and internet services.

The newly designated “little giant” firms will receive awards of either 100,000 Yuan or 300,000 Yuan.  

These “little giant” companies represent the elite tier of SMEs, specialising in niche markets and equipped with cutting-edge technologies, particularly in manufacturing. 

Moreover, commercial banks will provide loans totalling 400 billion Yuan, specifically targeted at firms achieving core technological breakthroughs. The loan guarantee for each firm has been increased from 20 million Yuan to 30 million Yuan.

In addition, Shanghai has allocated various funds amounting to 10 billion Yuan to support SME development, according to local officials. 

Across China, there are currently 141,000 SMEs engaged in core technology innovation, including over 11,000 based in Shanghai. The city is also home to 900 national-level “little giant” firms.