Bright future for emerging industries in China
The State Council recently announced guidelines, as part of the 13th Five-Year Plan period (2016-2020) on China’s strategic emerging industries. For the Chinese government it is clear: strategic emerging industries will lead the direction to a new round of technology revolution and industrial revolution. Therefore, the Chinese government puts much emphasis on developing these strategic emerging industries.
These are industries like new information technology, high-end manufacturing and new materials, bio-tech, green industries (including new energy vehicles, new energy and energy-saving and environmental protection technology) and of course the industries active in the digital world. According to the Guidelines, the added value from these strategic industries has to contribute to 15% (which was 8% in 2015) of China’s GDP in the year 2020. The target is that each of these industries should deliver about RMB10 trillion in added value to the Chinese economy. Over 1 million jobs should be created each year by better using the cross-industry convergence. Innovation is another focus of the Guidelines, the ownership of patents is expected to have an annual increase of 15%. The Chinese government will further strengthen the legal environment in the Intellectual Property field to attract innovative products and services.
The Guidelines also clearly set out tasks during the 13th Five-year Plan period. These tasks are:
- The high-end equipment manufacturing and new material industries should set the pace for China’s manufacturing sector based on the concept “ Made in China 2025”;
- A new consumption mode in China should be created by a boom in the digital and creative industries;
- The bio-industry should embrace game-changing innovations to drive the growth of a bio-economy;
- The information technology industry needs to be a driven force behind China’s cyber-economy, a 12-trillion gross output shall be reached by 2020;
- The new energy vehicles, new energy, and energy-saving & environmental protection industries should grow rapidly to set a role model for a sustainable development pattern.
This no doubt creates a lot of opportunities for foreign investment in these industries. As a matter of fact the attraction of foreign capital to grow these strategic emerging industries is also a task. This shows once more that now is the time to invest in China. (if you want to read the Guidelines in Chinese in full, click here). If you need more information please contact Joost Vrancken Peeters.