The private sector is becoming an increasingly important part of the Chinese economy. This has been recognized in the SME Promotion Law of 2003, which provides a policy rationale for public support for small and medium enterprises operating in the private sector. One aspect of government support for private enterprise development highlighted in that Law is the creation of enabling institutions and support systems for small and medium enterprises at municipal level. This article examines a series of enterprise development centres that have been established in China since 2000, and explores the implications for government support for and future development of private smaller enterprises in China.