A new policy blueprint has been unveiled to invigorate the entrepreneurial spirit and innovative drive within China's artificial intelligence sector, specifically targeting smaller enterprises.

On September 4th, the General Office of the Ministry of Industry and Information Technology released the《AI SME Entrepreneurship Support Plan (2026-2028)》. The initiative is designed to cultivate a dynamic "tropical rainforest" ecosystem that fosters innovation and encourages the continuous emergence of high-quality small and medium-sized enterprises (SMEs).

The plan sets ambitious targets to be achieved over the next three years across key domains such as industry applications, data services, and intelligent computing power. The goal is to nurture a large cohort of AI startups characterized by strong innovative capacity and significant growth potential. Specifically, the plan aims to newly cultivate over 10,000 technology and innovation-focused SMEs. Furthermore, it seeks to increase the number of specialized and sophisticated "little giant" enterprises that utilize new technologies to over 2,000, while also fostering the emergence of "gazelle" companies and "unicorn" enterprises.

Where the focus lies

To support these objectives, the plan outlines the high-standard construction of 10 technology business incubators and 10 national SME public service demonstration platforms or bases within the AI field. Additionally, it aims to establish 10 new national-level SME industry clusters with distinctive characteristics. This comprehensive approach is expected to continuously stimulate the vitality of AI SME entrepreneurship and innovation, laying the groundwork for a landscape where AI empowers the high-quality development of SMEs.

Strengthening core resource supply

Among its various work priorities, the plan emphasizes fortifying the supply of entrepreneurial elements, particularly universal and affordable computing power. It proposes leveraging the national computing platform to integrate and flexibly allocate computing resources, thereby providing startups with efficient, cost-effective, and concentrated computational support. The plan calls for the in-depth implementation of initiatives to empower SME development with accessible computing power, including the on-demand construction of edge computing facilities. This is intended to enhance the integration of computing and network capabilities and increase the supply of affordable intelligent computing power. To facilitate this, functions on the SME service network and the computing platform will be optimized to create dedicated zones for better matching computing resources with the needs of startups.

Enhancing financial and investment channels

Recognizing the critical role of capital, the plan also details measures to strengthen financing service guarantees. This involves fully leveraging the guiding role of national funds, such as the National SME Development Fund, the National AI Industry Investment Fund, and the National Integrated Circuit Industry Investment Fund. The aim is to encourage private capital to establish a series of early-stage venture capital funds and venture capital funds focused on the AI sector. This will help build a patient capital support system that covers the entire lifecycle of a startup, from its seed and early stages through to its growth phase.

Furthermore, the plan proposes adding a dedicated AI investment and financing section to the financing zone of the quality SME gradient cultivation platform. An "online roadshow" function will be launched to facilitate efficient connections between investment institutions and entrepreneurial companies. Support will also be directed towards encouraging various investment funds to increase their backing for high-quality open-source projects, thereby creating a virtuous and healthy open-source ecosystem.

Local governments are encouraged to collaborate with venture capital firms and incubation entities to coordinate resources such as investment, computing power, data supply, and pilot testing services. The plan also champions exploration of novel support mechanisms, including converting computing power or data into equity stakes and integrating investment with incubation services.

Fostering new types of entrepreneurial entities

Given the rapid growth of "one-person companies" this year, the plan includes measures to cultivate new business models and expand the entrepreneurial base. It encourages local authorities to provide supportive and inclusive policies for micro-entities, such as "one-person companies" and "super individuals" who leverage intelligent tools for agile entrepreneurship.