China's Ministry of Industry and Information Technology (MIIT), along with three other departments, recently released an action plan to promote the digital transformation of small and medium-sized enterprises (SMEs).

The plan says that by 2027, one of the most important targets is for over 40 percent of SMEs nationwide to adopt cloud-based solutions.

Seven key tasks are emphasized by the plan, including deeply implementing digital transformation in 100 piloting cities, digital transformation in different categories, promoting the integrated transformation of supply chain, industrial chain and industrial clusters, driving the innovative empowerment of artificial intelligence, greatly activating the value of SMEs' data elements, enhancing the supply quality and effect of digital transformation, and boosting the public service capability of digital transformation.

Central government funding will play a guiding role in supporting the digital transformation of over 40,000 SMEs in 100 piloting cities nationwide, according to the plan.

"Little giant" firms, which refer to the novel elites of SMEs that are engaged in manufacturing, specialize in a niche market and boast cutting-edge technologies, will carry out systematic integration transformation under the guidance of the plan.

The plan also urged promotion of the cloud-based service for micro-and small enterprises, supporting local governments to explore preferential policies and measures, providing assistance for SMEs to adopt cloud-based solutions.

Computing centers will be encouraged to provide "on-demand, pay-as-you-go" cloud computing services to reduce computing costs for SMEs.

China has continued to accelerate the digital transformation of SMEs through various measures. Among them, the MIIT and the Ministry of Finance have implemented digital transformation city pilot work, and have selected a total of 66 cities in two batches to support the digital transformation of more than 30,000 enterprises.