Chinese SMEs in industry 4.0: Analysis and future trends

Small and medium enterprises (SMEs) play a vital role in the economic development of the People's Republic of China. SMEs contribute to the total of 60% gross domestic product (GDP) and 80% employment. Chinese SMEs contribute to the more than 50% of the country tax. In 2015, China released the Made-in-China 2025 plan to response to the German Industry 4.0, which focuses on knowledge-, innovation-, and quality-intensive manufacturing for cutting-edge technology, new materials, key parts of major products. The chapter aims to explore the challenges and opportunities faced by SMEs in China in the context of Industry 4.0 and Made-in-China 2025. This chapter has used SWOT analysis to explore the challenges and opportunities of Chinese SMEs. Presently, SMEs are facing limited credit facilities, low innovative human capital, sustainable performance as a challenge, and ineffective performance appraisal. This chapter has presented as internationalization, coastal outsourcing, rising middle-class (high consumption), 'one belt, one road' opportunities for SMEs in Industry 4.0 context.