Comparative Analysis of SME Support in China and the European Union

This study is devoted to a comparative analysis of economic approaches to supporting small and medium-sized businesses (SMEs) in China and Germany. The relevance of the study is due to the significant contribution of SMEs to the economic growth and development of both China and Germany, as well as significant differences in their economic models. The Chinese economy is a mixed system with strong state participation and elements of a socialist planned economy. Germany, on the other hand, adheres to a socio-market model that assumes a balance between market mechanisms and social responsibility. Despite the differences in basic economic principles, the role of SMEs in both countries is recognized as key. In this regard, the governments of both countries are developing and implementing comprehensive programs to support SMEs. The purpose of this study is a comprehensive analysis and comparison of the approaches used by China and Germany to stimulate the development of SMEs. The study examines legislative acts, government programs, financial instruments and institutional mechanisms aimed at supporting SMEs in both countries. The results of the study demonstrate that, despite the difference in economic systems, measures to support SMEs in China and Germany have a number of significant similarities. Both countries focus on financial assistance and tax benefits. In addition, the system of implementation of these measures is similar. In China, SME support is provided at the provincial and city levels, which allows for a more flexible response to local peculiarities and business needs. In Germany, the implementation of support measures is carried out both through federal programs and at the level of individual lands.