China Plans Patent Screening for "Little Giant" SME Recognition

By Haedar

Photo: 力 Lee / Pexels

China is moving to check the patents behind one of its most sought-after business labels. A joint notice from four government bodies, including the China National Intellectual Property Administration (CNIPA), says authorities should study setting up a "front-end" patent screening mechanism for companies applying to be recognised as specialised and innovative SMEs, including the national "Little Giant" tier.

The notice

The document, numbered Gong Xin Ting Lian Qiye [2026] No. 40, is dated 13 October 2026 and was published by the Ministry of Industry and Information Technology (MIIT) on 23 October. It is issued jointly by the general offices of MIIT, the Cyberspace Administration, the State Taxation Administration and CNIPA. Its stated aim is to stop unscrupulous intermediaries from distorting the recognition process for high-quality SMEs.

What it says about patents

Under the heading on data verification, the notice asks SME authorities to work with IP and tax authorities to cross-check key data. It says they should research and establish a patent screening mechanism, relying on local IP offices, to check for abnormal patent activity and to evaluate patent quality during recognition. It also calls for:

• using AI and big data to strengthen expert review;
• on-site checks to prevent packaged or falsified data; and
• closer checks where indicators are abnormal, data are contradictory, or figures rise or fall suddenly.

Companies found to have falsified data lose their recognition and cannot reapply for three years, and typical cases involving bad intermediaries are to be publicised.

The wider context

Invention patents are among the "Class I" IP rights that count toward the national "Little Giant" criteria, and MIIT's 2026 recognition notice says patent figures will be taken from CNIPA data. Commentators, including ip fray in a 30 October analysis, have linked the step to China's broader shift from patent volume to quality and commercial use, and to CNIPA's long-running campaign against abnormal filings. The notice itself does not set out detailed screening criteria. It frames the mechanism as something to be researched and built.

Why it matters

For SMEs in China, and foreign investors who rely on Chinese partners' credentials, a "Little Giant" title may increasingly depend on patents that withstand quality review, not just on the number of filings. Agencies that package patent portfolios for recognition applications are a direct target. Firms should expect patent data in their applications to be checked against IP office records.

Sources

• MIIT: Notice on further preventing bad intermediaries from affecting high-quality SME recognition, Gong Xin Ting Lian Qiye [2026] No. 40 (published 23 Oct 2026, in Chinese)
• China Finance Information (Xinhua Finance): Four departments issue notice on SME recognition (23 Oct 2026, in Chinese)
• MIIT: Notice on the 2026 Little Giant recognition and review (in Chinese)
• ip fray: China's proposed patent screening for SME support reflects broader shift from volume to quality (30 Oct 2026)