Published by ChinaMNC · Qingyuan

China's New Policy to Integrate Tech and Industry: What Foreign Founders Need to Know

A practical overview of China's latest directive on integrating technological and industrial innovation, highlighting opportunities and considerations for foreign founders setting up or operating a company in China.

China's Push to Integrate Tech and Industry: Key Points for Foreign Founders

China's central authorities have issued a new directive aimed at deepening the integration of technological innovation with industrial development. For foreign founders registering or operating a company in China, this policy signals areas of focus that could shape the business environment, funding opportunities, and regulatory trends. Below is a summary of the key measures based on the official document.

Strengthened Coordination and Planning

The policy emphasizes a coordinated approach to science and technology planning and industrial development. It calls for aligning major policies, projects, and programs in key frontier fields, and for better coordination among science, industry, finance, education, and talent policies. Monitoring and evaluation will be conducted for regions and industries to assess the depth of integration, with a focus on how tech innovation leads industrial development.

Reform of Project Organization

National science and technology programs will be more oriented toward industrial application. Companies' needs will be regularly collected, and experts from enterprises and venture capital institutions will have a greater role in guideline drafting, project review, and acceptance. The policy supports enterprise-led projects, mechanisms such as "open competition" and "owner responsibility" systems, milestone management, and phased funding. Project acceptance will assess both technology and market application.

Improved Technology Transfer

For national science and technology projects with clear industrial application goals, enterprises will generally lead implementation and commercialization. Universities and research institutes are encouraged to set up technology transfer offices, strengthen services in intellectual property, incubation, and tech finance, and accelerate application through transfer, licensing, or equity investment. Reforms will grant researchers more rights over job-related科技成果 and allow deferred payment for licensing to small and medium-sized enterprises. A unified national technology market will be developed.

Scenario-Driven Innovation

The policy promotes demonstration projects for new technologies, products, and scenarios. Local governments are encouraged to open application scenarios in government services, smart cities, and rural construction, and to facilitate the sharing of supply and demand information.

Key Technology Breakthroughs for Industrial Chain Resilience

Efforts will target decisive breakthroughs in core technologies in integrated circuits, industrial machine tools, high-end instruments, advanced materials, and biomanufacturing. Industrial foundation再造 and major equipment projects will focus on weak links, basic components, key software, and materials.

Cultivating Emerging and Future Industries

The policy supports original and disruptive innovation to nurture strategic emerging industries such as new energy, new materials, and aerospace, and to develop future industries like quantum technology, biomanufacturing, hydrogen and nuclear fusion, brain-computer interfaces, embodied intelligence, and 6G. It also encourages the healthy development of the low-altitude economy.

Upgrading Traditional Industries

Traditional sectors will be transformed with advanced technologies, including major manufacturing upgrades, large-scale equipment renewal, industrial internet development, and the "AI+" initiative to empower all industries.

Enhancing Enterprise Innovation Capacity

Enterprises will have more opportunities to participate in national science and technology strategy and policy making. The National Natural Science Foundation will pilot opening to private enterprises, and joint funds will be expanded. State-owned enterprises are encouraged to establish R&D reserve funds with separate accounting and fault tolerance. Tax incentives such as super-deduction for R&D expenses will be increased for tech SMEs. Enterprises are supported to build innovation platforms, and national facilities will be more open to them. Talent programs will give more support to enterprises.

Supporting Tech Enterprises

The policy aims to optimize the cultivation of leading tech enterprises, support high-tech enterprises, and improve mechanisms for tech SMEs, "little giant" firms, and manufacturing champions. Startups will receive support in incubation and financing. Large enterprises are encouraged to open R&D platforms, scenarios, and supply chains to SMEs and to pilot their innovative products.

Collaboration Among Innovation Actors

Leading tech enterprises are encouraged to lead innovation consortia. National laboratories, research institutes, and universities will strengthen cooperation with enterprises, focusing on scientific questions from industrial needs. Enterprises can participate in academic research and talent training and jointly build R&D institutions.

Virtuous Cycle of Tech, Industry, and Finance

A tech finance system will be built to meet financing needs across enterprise lifecycles. The national venture capital guidance fund will play a role. Government-guided and state-owned venture capital funds will focus on early-stage, small, long-term, and hard-tech investments, with long-term assessment and differentiated regulation. The "innovation points system" will be promoted, and a "tech board" in the bond market will be developed. A tech insurance policy system will be established.

Talent Cultivation and Mobility

Education will be aligned with tech and industrial needs, with enterprises participating in curriculum adjustment. Joint university-enterprise programs and dual mentorship will be promoted. Policies will support researchers taking temporary posts, part-time work, or leaving to start businesses. Enterprises can hire innovation talent as industry professors. Young scientists and tech entrepreneurs will receive support.

Innovation Platforms

National centers for emerging industry innovation, industrial technology engineering, technology innovation, and manufacturing innovation will be coordinated. Proof-of-concept and pilot testing platforms will be built. Local new R&D institutions will be supported.

Market Environment and Regulation

Unreasonable barriers to innovative products will be removed, and market access pilot programs will be conducted in new business forms, including commitment-based entry. Sandbox regulation will be explored. Laws and regulations for AI, biotechnology, and other frontier fields will be improved, along with ethics rules.

Intellectual Property and Standards

IP protection will be strengthened, including trade secrets and new business forms. Benefit-sharing and risk-sharing mechanisms will be improved in industry-academia-research cooperation. The patent open licensing system will be fully implemented. Standard layouts for major national projects will be strengthened, and research on national and international standards in frontier fields will be enhanced.

Incentives and Evaluation

Tax incentives for innovation will be implemented. Fault-tolerance and exemption mechanisms for technology transfer and venture capital will be improved, with negative lists explored. State-owned enterprise evaluation will be refined, and joint R&D expenses with universities will be treated more favorably. University and researcher evaluations will consider industry-academia collaboration and commercialization results.

Local Pilot Programs

Local governments will receive macro guidance to leverage their strengths. Central-local coordination will be strengthened, and regional innovation systems improved. National high-tech zones and innovation demonstration zones will pilot policies. International and regional science and technology innovation centers and qualified localities will carry out reform pilots for deep integration.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.