China Moves to Screen Patents Used in SRDI and “Little Giant” Enterprise Certification

On October 23, 2026, four Chinese government bodies – the Ministry of Industry and Information Technology (MIIT), the Cyberspace Administration of China (CAC), the State Taxation Administration, and the China National Intellectual Property Administration (CNIPA) – jointly issued a notice titled “Notice on Further Preventing the Influence of Unscrupulous Intermediary Agencies on the Cultivation and Certification of High-Quality SMEs” (工信厅联企业〔2026〕40号, dated October 13, 2026). The notice addresses the involvement of third-party intermediary agencies in assisting companies with preparation of application materials, including patent filings, for China’s Specialized, Refined, Distinctive, and Novel (SRDI, 专精特新) and “Little Giant” (小巨人) enterprise designations.

Patents are part of the evaluation criteria for both designations; the number of invention patents and PCT filings is incorporated into the SRDI development quality evaluation index. The notice states that this has contributed to cases in which patents are obtained or filed for the purpose of meeting numerical thresholds rather than for other purposes.

The notice directs provincial-level SME authorities to coordinate with intellectual property and taxation departments to strengthen verification of application data. It calls for the establishment of a “front-end patent screening mechanism” (专利前端排查机制), under which local intellectual property authorities will screen for abnormal patent situations during the SRDI SME and “Little Giant” certification process and evaluate patent quality as part of the review. The notice also directs authorities to explore use of artificial intelligence and big-data analysis tools to support reviewer work, and to maintain on-site verification procedures. Indicators identified for targeted review include anomalous metrics, inconsistent data, and sudden increases or decreases in reported figures, including patent counts.

The notice requires that certification review panels be assembled using a random selection process for both reviewers and task assignment, and bars intermediary agencies that provide application-preparation services from participating in review of the same applications. Companies found to have submitted falsified data or materials will have their designation revoked and will be barred from reapplying for three years. Intermediary agencies found to have engaged in conduct such as fabricating application materials, making false or misleading representations about certification outcomes, or using improper means to solicit clients are subject to joint enforcement by SME authorities, cyberspace regulators, and intellectual property authorities, with identified cases to be published on the national SME cultivation platform. MIIT stated it will continue to apply review measures through SME development quality evaluations, joint SME and high-and-new-technology enterprise (HNTE) inspections, and unannounced inspections of SRDI enterprises.

Companies designated as SRDI SMEs (专精特新中小企业) have been reported to gain eligibility for provincial and municipal subsidy programs, access to government procurement opportunities, preferential consideration for bank credit (including government-backed loan guarantee or interest-subsidy programs in some jurisdictions), inclusion in technology and standards pilot programs, and access to government-provided counseling and application support.

Companies designated as “Little Giant” enterprises (专精特新”小巨人”) have been reported to additionally receive one-time central government fiscal awards, with amounts subject to annual budget allocation, as well as local matching subsidies that in some jurisdictions have exceeded the central-level award. “Little Giant” status has also been cited by the Sci-Tech Innovation Board (科创板) and the Beijing Stock Exchange as a factor considered during listing review, and designated companies have been reported to gain access to specialized equity investment and development funds, including national-level SME development funds, as well as consideration for participation in national technology and industrial-chain project programs, including open-bidding R&D programs (“揭榜挂帅”).

The original text of the notice is available here (Chinese only).