A man works at Hunan Warrant Chiral Pharmaceutical Co., Ltd, in Liuyang City, central China's Hunan Province, April 9, 2024. [Photo/Xinhua]

China has seen a surge in its "little giant" enterprises over the past years, underscoring the country's accelerating push to foster innovation-driven companies.

According to the Ministry of Industry and Information Technology, the number of such enterprises -- a designation of top-tier small and medium-sized enterprises (SMEs) with high growth potential, advanced technology and strong market competitive edge -- rose from over 5,000 to more than 17,600 during the 14th Five-Year Plan period (2021-2025).

"Little giant" enterprises stand out for their deep focus on innovation. In 2024, these firms on average invested more than 30 million yuan (over 4.24 million U.S. dollars) in research and development.

Often described as champions of single-product niches and specialized suppliers, the firms play an important role in improving the resilience and competitiveness of industrial and supply chains.

More than 60 percent of these firms are rooted in industrial fundamentals, and nearly 80 percent operate at critical points along supply chains. Around 90 percent directly supply at least three major domestic or international enterprises, and nearly 6,000 are expanding into frontier fields such as quantum technologies.

Experts believe that the rise of these specialized and sophisticated SMEs reflects how innovation has become their core competitive foundation and a crucial engine for China's broader economic growth.

Despite accounting for only 3.5 percent of China's industrial SMEs above designated size, they contribute 9.6 percent of total operating revenue and 13.7 percent of profits.

Looking ahead, "promoting the growth of SMEs that use specialized and sophisticated technologies to produce novel and unique products" is written into the Communist Party of China Central Committee's recommendations for formulating the 15th Five-Year Plan (2026-2030) unveiled in October.

Li Lecheng, minister of industry and information technology, said the government will further strengthen the role of enterprises as primary innovators, enhance the contribution of high-quality firms to supply-chain resilience, and improve the business environment.

Policy priorities include better aligning innovation and industrial ecosystems, leveraging fiscal policies, and expanding targeted financial support, according to Li.