China issues AI SME entrepreneurship support plan for 2026-2028

This signals a deliberate policy push to industrialize AI at the grassroots level in China, targeting early-stage firms rather than just large incumbents. By lowering trial costs and entry barriers, the plan could accelerate the pipeline of AI applications and specialized suppliers, potentially reshaping competitive dynamics in domestic tech supply chains. The stated emphasis on market-led growth with government guidance suggests a balancing act between state support and commercial viability. Whether this translates into measurable SME formation and innovation output over the three-year window is the key development to monitor.