Abstract: Government procurement has important policy functions.The development of small and medium-sized enterprises (SMEs) promoted by government procurement can reflect the government policy functions, and this strategy has been accepted to facilitate SMEs in many countries.However, the function is not been manifested ideally in our government procurement practice.The government procurement did not purchase goods or services from SMEs preferentially, the purchasing documents did not give the priority to SMEs, instead of setting conditions to limit the SMEs to participate the procurement.Therefore, it needs to legislate to ensure fair competition right to SMEs and take positive measures to improve the development of SMEs.