Zhejiang tops country in number of champion manufacturers

The Ministry of Industry and Information Technology and the China Federation of Industrial Economics recently published the list for China's fifth group of "single-item champion manufacturers" and "champion products", bringing the total number of holders of such titles to 596, among which 114 are based in East China’s Zhejiang province.

Zhejiang is currently home to 67 "single-item champion manufacturers" and 47 "champion products", accounting for 19.1 percent of the national aggregate, the highest proportion of any provincial-level region.

The Zhejiang city of Ningbo is home to 45 "single-item champion manufacturers" or "champion products", the highest number among all Chinese cities.

"Single-item champion manufacturers" refer to those committed to a single segment of the manufacturing sector, while also boasting world-advanced technologies and one of the largest market share in their segment.

To be qualified to apply to the Ministry of Industry and Information Technology for the title of "single-item manufacturer", a company has to focus on one or two market segments for at least 10 years, with sales from relevant products making up over 70 percent of its total revenue. In addition, their product has to excel in technology and quality, as well as rank among the world's top three for its global market share. The company also has to run at above-average profit margins and earn more than 400 million yuan ($61.8 million) in annual revenue.

An average "single-item champion manufacturer" in Zhejiang has more than 22 years in history and earns more than 80 percent of its revenue from the sales of a main product that has secured a global market share of 20 percent.

More than half of the Zhejiang-based "single-item champion manufacturers" are ranked first place worldwide for their occupancy of a specific market. Their R&D expenses as a percentage of sales revenues are above 5 percent on average, while their profit margins are above 10 percent on average. Most of them are in the five industries of basic components, high-end equipment, automobiles, new materials, and electronic information.

In November 2020, Zhejiang authorities set the target to have 100 "single-item champion manufacturers" by 2022.

Numerous policy incentives in financing, taxation, and human resources have been rolled out across the province to create such manufacturers. For example, the Ningbo municipal government awards three million yuan to a company immediately after it receives the title of "single-item champion manufacturer" or "champion product", while Hangzhou rewards a "single-item champion manufacturer" with a two million yuan award.