China's small and medium-sized enterprises (SME) should pursue sustainable development, Chinese Vice Premier Zeng Peiyan said here Thursday.

While visiting the exhibition on innovation and development of China's SMEs, Zeng said the SMEs should strive to better use resources, protect environment and contain pollution.

They should also improve their working conditions and better protect their employees, he said.

Zeng urged more efforts to shut up unqualified SMEs and intensify monitoring on market admittance and financing of SMEs.

The exhibition, held by the National Development and Reform Commission and other ministries and departments, demonstrated more than 16,000 products from more than 1,100 SMEs.

China has 42 million SMEs, more than 95 percent of which are privately owned, making up more than 99 percent of all enterprises in the country.