China’s Digital Transformation of SMEs
The Ministry of Industry and Information Technology ("MIIT") and the Ministry of Finance ("MOF") have recently released the Circular on Providing Financial Support for the Pilot Program for Digital Transformation of Small and Medium-sized Enterprises (the "Circular").
The Circular stipulates that, from 2022 to 2025, the central finance will, in three batches, support the local pilot program for the digital transformation of small and medium-sized enterprises in order to develop a number of small, rapid, light-weight, and precise digitization system solutions and products. The Circular specifies that, during the pilot program, attention will be given to the small and medium-sized enterprises in the key areas of manufacturing industry and the key links in the industry chain, and greater support will be offered to the small and medium-sized enterprises that have urgent need for digital transformation, huge development potential and remarkable economic and social significance. Priority will be given to the small and medium-sized enterprises engaged in pharmaceutical and chemical manufacturing, general and special equipment manufacturing, auto parts and accessories manufacturing, transportation equipment manufacturing, electrical machinery and equipment manufacturing, computer, telecommunication, electronics, and other industries.