Published by ChinaMNC · Guixi
China’s New Productive Forces Policy: A Practical Guide for Foreign Founders
A concise briefing for foreign founders on how China’s new productive forces policy signals priorities and incentives for company registration, R&D, and operations—based on the official CPC Central Committee and State Council opinion.
What the Policy Says
The CPC Central Committee and State Council have issued an opinion on developing “new productive forces.” For foreign founders, the document outlines a policy direction that prioritizes innovation-led growth, higher efficiency, and high-quality development. It calls for coordinating government and market roles, reform and development, and self-reliance and openness. The core marker is a substantial rise in total factor productivity, driven by technological breakthroughs, innovative allocation of production factors, and deep industrial upgrading.
The policy emphasizes creating production relations better suited to new productive forces and a development ecosystem that supports deep integration of technological and industrial innovation. It is not a set of guarantees or specific incentives, but it indicates where government support and regulatory attention are likely to focus.
Key Priorities Relevant to Foreign Founders
1. Strengthen Original and Disruptive Innovation
The document calls for major science and technology projects focused on strategic, landmark, and leading products. It supports both goal-oriented and free exploration, organized basic research, and application-oriented basic research to address weaknesses in technical and engineering sciences. It also calls for coordinated construction of science and technology platforms and major infrastructure, with open sharing and avoidance of duplication. A plan for breakthroughs in basic and interdisciplinary disciplines is mentioned. For foreign founders, this suggests opportunities in research collaboration and platform access, though specific access rules are not detailed here.
2. Break Through Key Core Technologies
Using the “new system of nationwide mobilization,” the policy calls for action plans for high-quality development of key manufacturing supply chains and industrial innovation projects, with full-chain, all-factor, and whole-ecosystem support. It mentions implementing policies for first-of-their-kind and first-batch applications to promote technology iteration. Foreign founders in manufacturing or deep tech should note the emphasis on supply chain upgrading, but should not assume automatic eligibility for such programs.
3. Enhance the Principal Role of Enterprises in Technological Innovation
This section is particularly relevant. The policy calls for inclusive incentive policies, a corporate R&D reserve system, and strengthening enterprises’ leading role in S&T investment. It encourages small and medium-sized tech enterprises to increase R&D and mentions raising the super deduction ratio for enterprise R&D expenses. Enterprise R&D projects that meet national strategic needs may be elevated to national projects through procedures. Enterprises, including capable private firms, are encouraged to lead national major technological breakthroughs. It also calls for user-based evaluation of outcomes and strengthening enterprises’ role in commercialization, plus support for “specialized, refined, distinctive, and innovative” SMEs.
For foreign founders, this signals a policy environment that rewards enterprise-led R&D and commercialization. However, eligibility for specific tax or funding programs depends on separate rules and nationality requirements, which are not addressed in this opinion.
4. Accelerate Commercialization of Scientific and Technological Achievements
The policy promotes large-scale application of new technologies, products, and scenarios, and calls for concept validation and pilot testing platforms. It suggests whole-process evaluation of science projects, with R&D and commercialization tasks deployed together at project launch and application performance assessed at acceptance. It encourages universities and research institutes to license results to SMEs on a “use first, pay later” basis, and supports large enterprises opening supply chains to SMEs. AI is highlighted as a driver of research paradigm change.
5. Upgrade Traditional Industries and Grow Emerging and Future Industries
The policy calls for using national standards to guide traditional industry upgrading, supporting digital, intelligent, and green technology transformation. It lists mining, metallurgy, chemicals, light industry, textiles, machinery, shipbuilding, and construction as sectors to maintain global competitiveness. It also calls for industrial base re-engineering, major technical equipment, and large-scale equipment renewal, with financial support and tax incentives for technical transformation. Emerging industries include next-generation information technology, new energy, new materials, intelligent connected new energy vehicles, robotics, biopharmaceuticals, high-end equipment, and aerospace. Future industries include quantum technology, biomanufacturing, hydrogen and nuclear fusion energy, brain-computer interfaces, embodied intelligence, and 6G. Low-altitude economy and commercial space are to develop in an orderly manner under safety conditions.
6. Deepen Integration of Real and Digital Economies
The policy calls for data property rights, market trading, benefit distribution, and protection systems, plus pilot projects for data factors. It mentions optimizing national data infrastructure, manufacturing digital transformation, “East Data West Computing,” smart manufacturing, industrial internet, a national integrated computing network, and a national blockchain network. It also calls for a policy system for digital industrialization and industrial digitalization, and internationally competitive digital industry clusters.
7. Implement the “AI+” Initiative
The policy calls for AI transformation of traditional industries and accelerated application of intelligent connected new energy vehicles, AI phones and computers, humanoid robots, and other intelligent terminals. It emphasizes breakthroughs in basic theory and core technologies, and efficient supply of computing power, algorithms, and data. It calls for national AI industry application pilot bases and high-value scenarios, and for technical monitoring, risk early warning, and emergency response systems to ensure AI is safe, reliable, and controllable.
8. Green and Low-Carbon Development
The policy calls for a green, low-carbon, circular economic system, including green manufacturing, green services, and green energy. It mentions zero-carbon factories and parks, green consumption incentives, carbon emission total and intensity dual control, carbon emission statistics and accounting, product carbon labeling and footprint management, expanding the national carbon market, and a unified green certificate market. It also calls for green finance products and green procurement.
9. Energy Revolution
Focused on carbon peak and neutrality goals, the policy calls for orderly development of advanced nuclear fission energy, a high-share renewable electricity system, improved new energy consumption and regulation, and major application demonstrations. It also mentions international cooperation.
10. Reform for Closer Science-Economy Linkage
The policy calls for deploying science tasks in major national projects as needed, demand-oriented topic selection, responsibility-consistent management, and application-oriented evaluation. It mentions reforming job-related science and technology achievement rights and separate asset management, allowing eligible state-owned enterprises to use various incentives, and building an open, shared, and secure national integrated data market and a technology market.
11. Market Regulation
The policy calls for improving market access, strengthening anti-monopoly and anti-unfair competition, and governance in AI and biology. It mentions cross-departmental joint supervision, innovative supervision methods, fewer on-site inspections, and “data-based decision-making and management.” It also calls for an efficient intellectual property management system and punitive damages, and research on tax systems suited to new business forms.
12. Financial Innovation
The policy encourages and regulates angel investment, venture capital, and private equity, and better leverages government investment funds. It calls for policies supporting long-term capital to invest early, small, long-term, and in hard tech, and to grow patient capital. It encourages banks to develop loan products suited to new productive forces, enrich science and technology innovation bond products, support qualified tech firms to list and finance, and optimize M&A and equity incentive systems. It also calls for insurance products covering the entire innovation chain and exploration of tech leasing.
13. Global Allocation of Advanced Production Factors
The policy calls for high-level opening up and use of global markets. It encourages free trade zones to cluster advanced production factors based on location, resources, and industry advantages. It mentions multilateral and bilateral cooperation mechanisms, joint science parks, “Belt and Road” joint laboratories, and international advanced technology application centers. It also calls for leading and participating in international big science programs, encouraging foreign venture capital institutions and international standard organizations to develop in China, and establishing efficient, convenient, and secure cross-border data flow mechanisms.
14. Talent
The policy calls for integrated reform of education, science, and talent systems, improving higher education, developing new research universities, optimizing discipline settings, and high-quality vocational education. It encourages enterprises and universities to jointly customize talent training and supports master craftsmen and highly skilled personnel to serve as vocational school instructors.
Practical Implications for Foreign Founders
- R&D and innovation: Policy attention is on enterprise-led R&D, commercialization, and first-of-their-kind applications. Foreign founders should review whether their China entity can access R&D incentives, but must check separate eligibility rules.
- Sector focus: Emerging and future industry lists indicate where government support and regulatory development are likely. Founders in AI, green energy, advanced manufacturing, biotech, and digital sectors should monitor implementing rules.
- Data and cross-border flows: The policy mentions a cross-border data flow mechanism, but details are not provided here. Foreign founders should follow subsequent regulations.
- Finance: The policy encourages venture capital, patient capital, and tech bonds. Foreign founders may find a more supportive financing environment, but specific programs and foreign investment rules are outside this document.
- Market regulation: Stronger anti-monopoly and IP enforcement are highlighted. Foreign founders should ensure compliance and protect IP through proper registration.
- Green compliance: Carbon labeling, footprint management, and carbon market expansion may affect supply chains. Foreign founders in manufacturing should prepare for gradually tighter green standards.
This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.