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China strives to nurture more hidden champion enterprises to quicken SMEs development

China has sought to nurture more hidden champion enterprises in a bid to push forward the development of small and medium-sized enterprises (SMEs), according to the Hidden Champions Development Summit held on Thursday during the second China International Import Expo (CIIE) in east China’s Shanghai.

As China is at the critical period of transforming the development model, optimizing the economic structure, and shifting the growth drivers, it has significant realistic meanings for the country to foster more hidden champion enterprises, said Gan Lin, deputy chief of the State Administration for Market Regulation (SAMR) at the summit.

“Hidden Champions”, a concept coined by Hermann Simon, a German SME management specialist, refers to those in a certain subdivision or industry that achieve the world’s leading position.

Hermann noted that although China’s hidden champion enterprises are still in their infancy, their development momentum is rapid, especially in the field of R&D, thanks to abundant capital supports.

Liu Zhengrong, vice president of Xinhua News Agency, pointed out that hidden champion enterprises play a very important role in cultivating new growth drivers and achieving high-quality economic development.

China’s economic growth has shifted from high-speed growth to high-quality development, which helps inject fresh impetus into the growth of global hidden champions, said Huang Guoliang, head of Quality Development Bureau of the SAMR, adding that China’s huge domestic demand provides a broad market for the development of global hidden champions, and premium industrial resources also create a rare opportunity for hidden champions.

At the forum, a program of looking for hidden champion enterprises in China was launched jointly by the China Economic Information Service (CEIS) of Xinhua News Agency and the Development Research Center of the SAMR, with the aim to support development and growth of the hidden champion enterprises through systematic research, search for enterprises, exploration of traits, in-depth exploration, standard setting, etc.

The summit was held jointly by the CEIS and the Development Research Center of the SAMR.