As reported in China in Focus, US small businesses are now the target of the CCP. China has a “Little Giants” program that gives enormous backing to Chinese small businesses. Where China once only subsidized large “National Champions” such as Huawei, they are now going after part of the global supply chain that US small businesses typically compete in. Many of the targets are small start-up tech firms. It’s China’s “secret weapon” to dominate emerging technologies. These “Little Giants” get subsidies such as state capital, preferential loans, and a fast-track path to going public on Chinese stock exchanges. It’s an industrial offensive designed to create “asymmetric dependencies” making sure the world can’t function without Chinese small businesses, while they function perfectly without ours
Lawfare is one of the most effective weapons that China uses against US small businesses. Chinese courts have issued rulings that prevent US companies from suing for patent infringement, leaving US small businesses with little to no recourse when China cheats. On top of that, they use our own courts against us–suing for incredulous amounts of money and bogging down our entrepreneurs in court. Congress is finally looking into it. Should we have our own “Little Giants” program?