NANCHANG: China’s “little giant” enterprises—specialised small and medium-sized firms focused on innovation—are expanding their global footprint, with rising exports and strong growth across advanced manufacturing sectors.

These companies, officially recognised by the Ministry of Industry and Information Technology, are playing an increasingly important role in China’s industrial economy. By the end of 2025, around 17,600 such firms had been identified nationwide, many operating in areas such as new materials, high-end equipment, new energy and biopharmaceuticals.

Although they account for a small share of industrial SMEs, these firms contribute disproportionately to revenue and profits, reflecting their growing importance in China’s export and innovation landscape.

Innovation-led growth

Companies like Jiujiang Lida Technology Co., Ltd., based in Jiangxi province, illustrate this trend. The firm produces high-performance automotive film materials and has expanded exports significantly in recent years, driven by product innovation and international market development.

Similarly, Jiangxi Lanjing Optical Technology Co., Ltd. has developed specialised optical components used in advanced vehicle display systems. The company focuses on enhancing product functionality through features such as durability and resistance to environmental conditions.

Industry data shows that “little giants” maintain high levels of research and development investment, averaging around 7% of revenue, and collectively hold hundreds of thousands of patents.

Strategic focus and resilience

Companies in this category often prioritise long-term innovation over short-term scale. Nanya New Material Technology Co., Ltd., for example, has focused on advanced copper-clad laminate products used in electronics and electric vehicles.

Despite market fluctuations in earlier years, demand for such components has increased alongside global growth in computing and AI technologies, contributing to strong revenue gains for the company.

Policy support and global expansion

China’s government has introduced a range of measures to support these enterprises, including tax incentives, subsidies and improved access to financing. These policies are part of a broader strategy to strengthen high-quality industrial development under the country’s long-term economic plans.

Experts say “little giants” are becoming a key part of China’s global manufacturing presence, particularly in specialised and high-value sectors.

With continued investment in innovation and supportive policies, these firms are expected to play a larger role in global supply chains and advanced industries in the coming years.