At present, low-carbon economy has become the great trend in the development of global economy under the serious climate environment gradually. China’s small and medium enterprises (SME) have taken the large proportions in national economy, which face large amount of opportunities and challenges in the wave of reform. This article analyses the current situation and the problems on development strategy, technology innovation and the path of reform of China’s SME, which takes examples by the SME in some regions to improve the operating environments. It expects to change the extensive production mode, strengthen the management capability and technology innovation in China’s SME. Under the basis of this research, the article concludes the relevant strategy transformation modes, which provides the references and evidences for China’s SME.