Editor's Note

General Secretary Xi Jinping has called for “making concerted efforts to promote innovation among enterprises, strengthening intellectual property protection, and fostering the emergence of more specialized, refined, distinctive, and innovative small and medium-sized enterprises.”

The report to the 20th National Congress of the Communist Party of China explicitly states, “We will support the development of specialized, refined, distinctive, and innovative enterprises.” To date, China has cultivated approximately 9,000 such “little giant” firms. This year, the Ministry of Industry and Information Technology released the fourth batch of the list of enterprises being nurtured as specialized, refined, distinctive, and innovative “little giants,” with 135 from Hebei Province making the cut, bringing the province’s total to 335. In addition, Hebei was selected as one of the 28 “little giants” receiving key central government financial support in the third batch. These “little giants” have become the most dynamic component of Hebei’s contribution to Chinese-style modernization.

What “secret weapons” do Hebei’s specialized, refined, distinctive, and innovative “little giant” enterprises possess, and in which fields have they emerged as “single-event champions” or “hidden champions”? What kind of support are these enterprises receiving from Party committees and governments at all levels? Recently, People’s Daily Online conducted field visits and surveys across Hebei Province and launched the “Portrait of ‘Little Giant’ Cities” series, highlighting effective measures taken by local authorities to foster a favorable environment for the development of small and medium-sized enterprises.

In the Xingda Automotive Mould Production Workshop in Botou City, workers are lifting and transporting moulds. Photo provided by the interviewee.

Recently, Xingda Automotive Mould Company in Botou City, Cangzhou, Hebei Province, has been bustling with activity. The company ranks among the top three automotive mould manufacturers in China.

“Our primary products are molds for car side panels, inner and outer engine-hood panels, roof panels, and other components. To ensure on-time, high-quality delivery of customer orders, we are ramping up production, with our workshops operating around the clock,” said Kuang Ya, Assistant to the Chairman of Xingda Automotive Mould Co., Ltd. He added that automotive stamping dies are the company’s core product line, and that the firm is currently experiencing robust order growth.

“We expect 2022 revenue to grow by 16% year on year, with full-year exports reaching US$16 million,” said Kuang Ya. He added that the rise of the new-energy vehicle industry has ushered in a new round of growth opportunities for automotive molds, and that since being recognized in 2022 as a key “Little Giant” enterprise under the MIIT’s Specialized, Refined, Distinctive, and Innovative program, the company has been experiencing rapid expansion.

According to the briefing, with the support of national awards and subsidies as well as relevant policies, Xingda Automotive Mould Co., Ltd. is leveraging its four provincial-level R&D platforms, including the Provincial Industrial Technology Research Institute, to increase investment in new products, new processes, and new technologies, with the aim of continuously launching internationally competitive offerings.

It’s not just Xingda Automotive Mould that is running at full capacity to rush orders. In recent days, at the Lingang Economic and Technological Development Zone in Cangzhou, Hebei Province, the production lines of Hebei Guangxiang Pharmaceutical Co., Ltd. have also been operating around the clock to meet demand.

“Orders are now booked through March of next year, and we expect the company’s export value to exceed US$100 million this year,” said Cui Yongbin, Chairman of Hebei Guangxiang Pharmaceutical Co., Ltd. In 2021, after being recognized as a provincial-level specialized, refined, distinctive, and innovative SME in Hebei Province, Hebei Guangxiang Pharmaceutical leveraged relevant national policy support to swiftly establish a research and innovation platform.

He stated that Hebei Guangxiang Pharmaceutical Co., Ltd. has now embarked on a journey to strive for the national-level “Little Giant” designation for specialized, refined, distinctive, and innovative enterprises. The company has identified untapped market opportunities and is poised to deepen its expertise in the niche area of specialty active pharmaceutical ingredients. Leveraging a suite of national, provincial, and municipal policies and initiatives supporting the development of the biopharmaceutical industry, the company will continue to increase its R&D investment, steadily elevate its operations to new heights, and achieve breakthroughs.

In fact, Xingda Automotive Mould and Hebei Guangxiang Pharmaceutical are emblematic of a broader trend. In Cangzhou, the vigorous efforts of specialized, refined, distinctive, and innovative enterprises are underpinned by a profound development rationale. “In recent years, the Cangzhou Municipal Bureau of Industry and Information Technology has consistently focused on fostering such SMEs, emphasizing policy guidance, strengthening service support, and continuously stimulating corporate innovation,” said Shi Jinqing, Party Secretary and Director of the bureau.

Shi Jinqing stated that Cangzhou has successively formulated the “Work Plan for Accelerating the Listing and Public Offering of ‘Specialized, Refined, Distinctive, and Innovative’ SMEs in Cangzhou,” the “Several Measures to Support the High-Quality Development of ‘Specialized, Refined, Distinctive, and Innovative’ SMEs,” and the “Work Plan for Cultivating Specialized, Refined, Distinctive, and Innovative Enterprises and ‘Little Giant’ Enterprises in Cangzhou.” These initiatives are designed to guide local SMEs toward specialized, refined, distinctive, and innovative development, with the goal of fostering a cohort of such “little giant” enterprises to establish a leading echelon of firms that drive high-quality local economic growth.

“We are focusing on the city’s leading industries and the distinctive industries of each county, with particular emphasis on industry-leading enterprises, high-tech firms, and technology-based SMEs. Eligible companies are included in the ‘Little Giant’ enterprise reserve pool,” said Tang Guowei, Deputy Director of the Cangzhou Municipal Bureau of Industry and Information Technology. He added that each year the local authorities select a group of fast-growing, highly specialized, innovation-driven enterprises with core technologies and distinctive product and service offerings from the ‘Little Giant’ reserve pool for targeted support and development.

“We are driving the growth and strengthening of specialized, sophisticated, and novel enterprises through a range of measures, including closely aligning with corporate needs to accelerate innovation, increasing financial support, and guiding companies toward IPOs,” said Tang Guowei. He added that the local authorities are taking the cultivation of such enterprises—and “little giant” firms—as a key entry point to guide high-quality businesses across the city in scaling up and enhancing their competitiveness.

Data show that, since the beginning of this year, more than 500 enterprises in the region have received training on applications for “specialized, refined, distinctive, and innovative” enterprise designation—both online and offline. In addition, the Cangzhou municipal and county levels have jointly organized 173 bank-enterprise matchmaking events, successfully addressing financing needs totaling RMB 10.404 billion.

Xingda Automotive Mould Production Workshop in Botou City. Photo provided by the interviewee.

The concerted efforts of relevant government departments have continuously unleashed the innovative vitality of local specialized, refined, distinctive, and novel enterprises. In 2021, R&D expenditure accounted for 3.19% of total revenue among such SMEs in Cangzhou, giving rise to a number of industry-leading firms and “single-champion” enterprises in specific sub-sectors.

To date, Cangzhou City has 313 provincial-level specialized, refined, distinctive, and innovative SMEs, ranking third in the province; 96 provincial-level demonstration enterprises for specialization, refinement, distinctiveness, and innovation, also ranking third in the province; 40 national-level “Little Giant” enterprises for specialization, refinement, distinctiveness, and innovation, again ranking third in the province; and 6 national-level key “Little Giant” enterprises for specialization, refinement, distinctiveness, and innovation, ranking fourth in the province.

“Going forward, we will intensify our efforts to accelerate the development of specialized, sophisticated, and novel ‘little giant’ enterprises across the city,” said Shi Jinqing. By 2025, Cangzhou aims to have approximately 80 such “little giant” firms, which will play an increasingly prominent role in supporting key local industries such as high-end manufacturing, new materials, complete vehicle and component manufacturing, and biopharmaceuticals.

(Editor: Fang Tong, Fu Zhaosa)