The weird thing is China is absolutely jam packed with small companies. Go to a trade show and you'll find dozens of companies selling basically the same products with minor variations. It's absolutely cutthroat.

In the US we tend to see small companies get gobbled up by huge incumbents regularly, but in China the situation is much more in flux and it's not always obvious who the winners are going to be. It's the opposite of what you would expect from a command economy, at least in the tech and consumer product sectors.