Author(s)

Xueting Cao ¹, Lei Tian ¹

Affiliation(s)

¹ Data Research Center, China Academy of Information and Communications Technology, Beijing, China

Corresponding Author

Lei Tian

ABSTRACT

Within China's Dual-Circulation Strategy, small and medium-sized enterprises (SMEs) are recognized as vital to innovation, employment, and economic resilience. However, the prevailing policy model, which relies on large enterprises to lead SME development through technology and supply chain spillovers, faces mounting challenges. Economic pressures have led large firms to prioritize cost-cutting over collaboration, resulting in payment delays and constrained support for SMEs. This study draws on an analysis of over 600 SME support policies reviewed by the OECD, alongside recent Chinese policy initiatives and empirical data from national industrial and judicial reports. A mixed-methods approach combines qualitative policy analysis with quantitative evaluation of implementation outcomes. The research identifies a significant policy–practice gap. While top-down approaches emphasize large-firm leadership, empirical evidence shows SMEs continue to encounter financing bottlenecks and unequal bargaining power. Conversely, network-based models-such as innovation clusters, cross-border production networks, and digital platforms-prove more effective in enhancing SME resilience and global competitiveness. China's recent gradient cultivation system, which has supported over 14,000 specialized "little giant" firms, offers a promising alternative framework. The study contributes to industrial policy and SME literature by proposing a shift from lead-firm-dependent models to sustainable, network-oriented development paradigms. It offers practical insights for policymakers in enhancing digital transformation, fostering university–industry partnerships, and building internationally competitive SME clusters, thereby facilitating more effective integration into global value chains under the Dual-Circulation Strategy.

KEYWORDS

SME Networks, Internationalization Policy, Industrial Clusters, Dual-Circulation Strategy

CITE THIS PAPER

Xueting Cao, Lei Tian, Promoting SMEs within the Dual-Circulation Strategy: A Policy Perspective. Accounting and Corporate Management (2025) Vol. 7: 8-13. DOI: http://dx.doi.org/10.23977/acccm.2025.070502.

REFERENCES

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