How foreign investors should view China’s ‘little giants’ scheme

China's "little giant" scheme, initiated in 2018, focuses on cultivating specialized and innovative small and medium-sized enterprises. These "little giants" are crucial suppliers for emerging industries like humanoid robotics, providing essential components such as reduction gears, torque sensors, and precision bearings. By late last year, China had designated over 17,600 national-level "little giant" enterprises. Although they represent only 3.5% of industrial SMEs, these companies contribute significantly to the sector's revenue and profits. Foreign investors and strategists are increasingly recognizing the importance of these less-known companies within China's industrial supply chain.