A bɔra · Mali

China’s New Quality Productive Forces: What Foreign Founders Need to Know

A practical guide for foreign entrepreneurs on how China’s policy for developing new quality productive forces affects company registration, R&D, and operations in China.

China’s Push for New Quality Productive Forces

The Chinese government has issued a comprehensive opinion on developing “new quality productive forces” – a policy framework that emphasizes innovation-driven growth, industrial upgrading, and deeper integration of technology with the economy. For foreign founders registering or operating a company in China, this policy signals priorities and opportunities across R&D, advanced manufacturing, digitalization, and green development. Below is a practical summary of the key measures, based only on the official source.

Strengthening Scientific and Technological Innovation

China plans to reinforce original and disruptive innovation by organizing major science projects around strategic products, supporting both goal-oriented and free exploratory basic research, and building major science infrastructure that is openly shared. The policy also calls for breakthroughs in key core technologies using a new national system, with full-chain support for manufacturing supply chains and first-of-their-kind applications.

National strategic science and technology forces – national laboratories, research institutes, research universities, and leading tech enterprises – will have their roles optimized. Universities and research institutes will see salary systems that reward knowledge value and innovation, and research-type public institutions may adopt more flexible management. Leading tech enterprises are expected to integrate innovation, industrial, funding, and talent chains.

Enhancing the Role of Enterprises in Innovation

Enterprises are to become key drivers of technological innovation. The policy proposes a corporate R&D reserve fund system, a higher super-deduction ratio for R&D expenses, and the possibility for enterprise R&D projects that align with national strategic needs to be elevated to national projects. Qualified private enterprises may lead major national technical breakthroughs. State-owned enterprises will have institutional arrangements for original innovation, and specialized, refined, distinctive, and innovative SMEs are supported.

To accelerate commercialization, China will leverage its large market to match technology with demand, run large-scale application demonstrations for new technologies and products, and build proof-of-concept and pilot-testing platforms. Universities and research institutes are encouraged to license科技成果 to SMEs on a “use-first, pay-later” basis. Large enterprises are encouraged to open their supply chains to SMEs, and AI is to be used to transform research paradigms.

Transforming Traditional Industries and Cultivating Emerging Ones

Traditional industries – mining, metallurgy, chemicals, light industry, textiles, machinery, shipbuilding, and construction – are to be upgraded using digital, intelligent, and green technologies. The policy includes industrial base re-engineering, major technical equipment breakthroughs, large-scale equipment renewal, and support for smart, green, and service-oriented manufacturing. Agriculture will see actions for grain capacity, seed industry revitalization, smart agriculture, and modern facility agriculture, including agricultural factories. Producer services will move up the value chain, while consumer services become more diverse and convenient.

Emerging industries to be cultivated include next-generation information technology, new energy, new materials, intelligent connected new energy vehicles, robotics, biomedicine, high-end equipment, and aerospace. The policy encourages distinctive industrial clusters, cross-regional collaboration, and healthy development of the low-altitude economy and commercial space. Future industries – quantum technology, biomanufacturing, hydrogen and fusion energy, brain-computer interfaces, embodied intelligence, and 6G – are to be explored with diverse technology routes and risk-sharing mechanisms.

Deepening Digital and Green Transitions

China aims to integrate the real economy with the digital economy by clarifying data property rights, data trading, and benefit distribution; implementing pilot projects for data factors; and improving national data infrastructure. The “East Data, West Computing” project, smart manufacturing, industrial internet, and a national computing network will be advanced. A national “AI+” initiative will promote AI application in traditional industries, intelligent terminals, and humanoid robots, while ensuring AI is safe, reliable, and controllable.

For green development, the policy promotes green manufacturing, green services, and green energy. It includes green consumption incentives, zero-carbon factories and parks, circular economy measures, and a policy toolkit covering fiscal, financial, investment, price, and environmental policies. Carbon emission总量 and intensity dual control, carbon markets, green certificates, and green finance products are to be improved. An energy revolution will focus on carbon peaking and neutrality, with orderly nuclear fission development and a high-share renewable power system.

Reforms to Support Innovation and Global Integration

Reforms will link science and economy more closely: science tasks in major projects, demand-oriented topic selection, application-oriented evaluation, and reforms to give researchers more rights over job-related科技成果. Market supervision will be improved with better market access, anti-monopoly enforcement, governance for AI and biology, and smarter regulation using data. Financial innovation is encouraged: angel investment, venture capital, private equity, government guidance funds, patient capital, bank loans tailored to new quality productive forces, science-tech bonds, listings for quality tech firms, and insurance products covering the innovation chain.

To attract global factors, China will expand high-level opening, encourage free trade zones to cluster advanced production factors, promote joint science parks, “Belt and Road” joint laboratories, and international technology application centers, and welcome foreign venture capital institutions and international standards organizations. A safe and efficient cross-border data flow mechanism will be established. Talent development will be integrated with education and science reforms, including new research universities, vocational education, and customized training by enterprises and universities.

What This Means for Foreign Founders

Foreign founders should note that these policy directions may create incentives and support mechanisms in R&D, high-tech manufacturing, digital services, and green industries. When registering a company in China, consider aligning your business scope with encouraged sectors such as emerging industries or future industries. The emphasis on enterprise-led innovation, R&D tax incentives, and commercialization platforms may benefit foreign-invested enterprises that invest in local R&D. The opening measures for foreign venture capital and cross-border data flows are also relevant for structuring your operations. However, specific implementation varies by region and sector, so local guidance is essential.

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

For assistance with company registration and operations in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.