China will improve support for small and medium-sized enterprises (SMEs) and help them play better roles in reinforcing the industrial chains, said the Ministry of Industry and Information Technology (MIIT) on Monday.

In 2022, the country will incubate 3,000 "little giant" firms, which refers to SMEs that dominate major markets in niche sectors, said the ministry.

There are currently 4,762 "little giant" companies focusing on high-end technologies, over half of which have invested more than 10 million yuan in research and development, according to the MIIT.

To make the list of "little giants," an SME must command a high market share, have significant innovation capacity and hold core technology.

SMEs that feature specialization, refinement, uniqueness and innovation or have leading advantages will also be better cultivated as part of efforts to build emerging industrial chains, said the MIIT.

Policies will encourage large enterprises to open the market, technologies and talents to SMEs, the ministry said, adding SMEs will enjoy more financial support.

SMEs are a significant force to maintain the security and stability of the industrial and supply chains, said Xu Xiaolan, vice minister of the MIIT.

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(With input from Xinhua)