More than 140 million SMEs make up a significant part of China's economy and technological innovation.

However, they are also responsible for significant environmental issues, with most environmental regulation violations in China being incurred by SMEs. This paper investigates how SMEs can help China transition to a circular economy by harnessing their potential for technology innovation and flexibility in adopting circular practices. By looking into the development characteristics of Chinese SMEs, it highlights the implications for SME-related policies and management and emphasises the need for collaboration between businesses, NGOs and individuals.

By tapping into their strengths, SMEs can play a vital role in delivering the successful transition to a circular economy in China.