China targets 22,000 'little giant' firms by 2030 in SME push

China aims to increase the number of nationally recognized "little giant" firms — small and medium-sized enterprises specializing in niche markets and advanced technologies — to 22,000 by 2030, under a new five-year plan unveiled on Thursday.

The plan, jointly issued by the Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Science and Technology and seven other government departments, sets out China's priorities for strengthening SMEs during the 2026-2030 period.

Under the plan, China expects revenue per employee at above-designated-size SMEs to rise by about 15 percent cumulatively by 2030, while annual in-house research and development spending by above-designated-size industrial SMEs is targeted to grow by more than 8 percent on average.

The number of nationally recognized specialized industrial clusters for SMEs is expected to reach 600, while China plans to expand cooperation zones for Chinese and foreign SMEs to 50.

The targets underscore Beijing's push to turn smaller companies into a stronger engine of technological innovation and industrial upgrading, as China seeks new sources of productivity growth amid intensifying global competition in areas ranging from artificial intelligence and robotics to semiconductors and advanced manufacturing.

The government has in recent years cultivated a tiered system of innovative SMEs, with the elite "little giants" sitting near the top. The designation is awarded to companies that typically focus on specialized markets, possess strong innovation capabilities and play important roles in industrial and supply chains.

Digital transformation is another major focus of the new plan. By 2030, 95 percent of specialized and innovative SMEs are expected to reach at least the second level of the country's digital-intelligence development assessment, while 80 percent are targeted to reach the third level.

The government also pledged to improve the business environment for smaller firms, including establishing a long-term mechanism to prevent and resolve overdue payments owed to SMEs and broadening their access to diversified financing channels.

China's SMEs strengthened their overall performance during the 14th Five-Year Plan period (2021 to 2025). Revenue and total assets of above-designated-size SMEs grew at average annual rates of 5.7 percent and 6.6 percent, respectively, according to the government.

Innovation also accelerated. China's nationally recognized "little giant" firms invested an average of 7 percent of their revenue in research and development during the period, with average R&D spending exceeding 30 million yuan ($4.2 million) per company.