China's SME Cluster of Core Competence and the Improvement of Abstract Under the trend of economic globalization, the competition between countries is most important is economic strength, economic strength of a country is one important embodiment of the core competitiveness of SMEs. The growth of the core competitiveness of SMEs are driving the soaring national competitiveness. In this global arena, in order to meet increasing global economic competition challenges, countries have to improve and strengthen at the enterprise core competitiveness construction, by enhancing the core competitiveness of enterprises to create a sustainable competitive business advantage, core competence Construction is referred to an unprecedented importance. With China's accession to WTO, Qi Ye internal and external environment, great changes have taken place in Le, in an increasingly heated competition, domestic enterprises are to compete You Shi Huo Qu, Bu Jin to be concerned about changes in the external environment brought to enterprise opportunities and challenges, Geng accumulation of enterprises to find their own unique resources, and form different from other companies, specific to the enterprise core competitiveness. These efforts are all enterprises to obtain long-term competitive advantage, to seize the high ground in international competition in the 21st century of great significance. This article is divided into four parts, the first explained the concept of core competence and character; second part of the core competitiveness of SME clusters connotation and denotation; third part of the in-depth analysis of the Competitiveness of SMEs in the cluster core; In the fourth part of the proposed upgrading of SMEs Competitiveness of the cluster core. Keywords: SME; core competitiveness; cluster