Çap edildi · Turkmenistan

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

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

China’s New Quality Productive Forces: A Founder’s Guide

The Chinese government has issued a major policy document on developing “new quality productive forces” (新质生产力). For foreign founders building or registering a company in China, this signals where policy support, regulatory attention, and market opportunities are heading. Below is a practical summary of the key measures, based only on the official text.

What Are ‘New Quality Productive Forces’?

The policy defines them as a development model driven by technological innovation, with a substantial rise in total factor productivity as the core marker. It calls for breakthroughs in technology, new combinations of production factors, and deep industrial upgrading. The guiding principles include innovation-led development, reform as the key, adapting to local conditions, and balancing government and market, development and security, and self-reliance and openness.

1. Strengthen Original and Disruptive Innovation

The government plans to organize major science and technology projects focused on strategic, landmark, and leading products. It will support both goal-oriented and free-exploration basic research, build major science infrastructure, and promote open sharing to avoid duplication. There is also a plan for breakthroughs in basic and interdisciplinary disciplines. For foreign founders with R&D operations, this suggests more opportunities to participate in publicly supported research platforms and infrastructure.

2. Break Through Key Core Technologies

Using the “new nationwide system,” China will organize high-quality development actions for key manufacturing supply chains and industrial innovation projects. It will implement policies for first-of-its-kind and first-batch applications to encourage technology iteration. Foreign companies in advanced manufacturing may find more openings to participate in these supply chain and innovation programs.

3. Build National Strategic Science and Technology Strength

National laboratories will play a bigger role in organizing major projects and building innovation platforms. The policy calls for optimizing the positioning of national research institutes, high-level research universities, and leading technology enterprises. It also allows more flexible management for research-type public institutions and emphasizes the key role of leading tech enterprises in integrating innovation, industrial, capital, and talent chains.

4. Make Enterprises the Main Body of Innovation

The policy introduces a corporate R&D reserve system and encourages enterprises to increase R&D investment, especially small and medium-sized tech firms. The R&D expense super-deduction ratio will be raised. Enterprise R&D projects that meet national strategic needs can be elevated to national projects, and capable private enterprises are encouraged to lead major national technology tasks. State-owned enterprises will also have new arrangements to promote original innovation. Specialized and new SMEs are explicitly supported. Foreign founders should note that these incentives are mostly available to Chinese-registered enterprises, so structuring your China entity correctly matters.

5. Accelerate Commercialization of Research Results

China will use its large market to match technology with market demand and scale up new quality productive forces. It will launch demonstration actions for large-scale application of new technologies, products, and scenarios. Concept validation and pilot testing platforms will be built, and application scenarios will be opened up. The policy encourages universities and research institutes to license results to SMEs on a “use first, pay later” basis. Large enterprises are encouraged to open their supply chains to SMEs, and AI is expected to transform research paradigms. Foreign founders with technology can explore licensing and pilot testing opportunities.

6. Upgrade Traditional Industries

While pursuing new industries, the policy stresses the foundation of the real economy. It supports enterprises using digital, intelligent, and green technologies to upgrade traditional sectors such as mining, metallurgy, chemicals, light industry, textiles, machinery, shipbuilding, and construction. It includes programs for industrial base reconstruction, major technical equipment, and large-scale equipment renewal. Tax incentives for technological transformation investments are mentioned. Agriculture and services also get upgrading actions. Foreign investors in these sectors may find modernization opportunities.

7. Cultivate Emerging Industries

The policy aims to build new pillar industries in next-generation information technology, new energy, new materials, intelligent connected new energy vehicles, robotics, biomedicine, high-end equipment, and aerospace. It encourages distinctive industrial clusters and cross-regional cooperation, while avoiding “involution-style” competition. Low-altitude economy and commercial space are to develop in a healthy and orderly manner under safety conditions. Foreign founders in these fields should watch for cluster development and cross-regional collaboration mechanisms.

8. Plan for Future Industries

China will explore multiple technology routes, application scenarios, business models, and market regulation rules for future industries such as quantum technology, bio-manufacturing, hydrogen and nuclear fusion energy, brain-computer interfaces, embodied intelligence, and 6G. A funding growth and risk-sharing mechanism will be established, using existing fiscal policies and guiding social capital.

9. Integrate the Real Economy and Digital Economy

The policy calls for improving data property rights, market trading, benefit distribution, and interest protection systems. Pilot projects for data factors will be implemented. National data infrastructure will be optimized, including the “East Data, West Computing” project, smart manufacturing, industrial internet, a national integrated computing network, and a national blockchain network. Policies for digital industrialization and industrial digitalization will be improved, and internationally competitive digital industry clusters will be built.

10. Implement the ‘AI+’ Initiative

China will promote AI transformation of traditional industries and accelerate applications in intelligent connected vehicles, AI phones and computers, humanoid robots, and other new smart terminals. It will support AI technology innovation, including basic theory and core technologies, and strengthen supply of computing power, algorithms, and data. National AI industry application pilot bases and high-value application scenarios will be laid out by industry and locality. A system for technology monitoring, risk warning, and emergency response will be built to ensure AI is safe, reliable, and controllable.

11. Build a Green, Low-Carbon, Circular Economy

The policy aims to strengthen green manufacturing, green services, and green energy industries. It calls for green upgrades in key industries, green technology innovation and application, incentives for green consumption, and certification and labeling systems. Zero-carbon factories and parks will be built. Resource management and waste recycling systems will be improved.

12. Optimize Green Development Policy Tools

Fiscal, financial, investment, pricing, technology, and environmental policies will support green development. The policy includes a mechanism for realizing ecological product value, a carbon emission total and intensity dual-control system, carbon accounting and standards, carbon labeling and footprint management. The national carbon market will be expanded, and the voluntary emission reduction market and green certificate market will be improved. Financial institutions are encouraged to offer diverse green financial products, and government green procurement and tax systems will be optimized.

13. Advance the Energy Revolution

With carbon peak and neutrality goals, China will develop advanced nuclear fission energy in an orderly way, build a high-share renewable electricity system, improve policies for renewable energy consumption and regulation, and demonstrate major application scenarios. It aims to accelerate green energy use across society and deepen international cooperation.

14. Reform to Better Link Science, Technology, and the Economy

Science and technology tasks will be deployed in major national projects as needed. The policy calls for demand-oriented topic selection, management systems with aligned responsibilities and rights, and application-oriented evaluation. Reforms will give researchers more rights to commercialize results and manage assets separately. Qualified state-owned enterprises can use various incentives. A national integrated data market that is open, shared, and secure will be built, along with an efficient technology market.

15. Improve Market Regulation

Market access rules will be improved, and anti-monopoly and anti-unfair competition enforcement strengthened. Governance in AI and biology will be enhanced. Cross-departmental joint supervision will be strengthened with innovative methods, fewer on-site inspections, and data-driven supervision. An efficient intellectual property management system and punitive damages will be improved. Tax rules for new business forms will be studied.

16. Increase Financial Innovation Products

The policy encourages and regulates angel investment, venture capital, and private equity. Government investment funds will play a guiding role. Support policies for long-term capital to invest early, in small firms, for the long term, and in hard tech will be improved, growing “patient capital.” Banks are encouraged to develop loan products suited to new quality productive forces. The science and technology innovation bond market will be enriched, and qualified tech firms are supported to list and finance. Insurance products covering the entire innovation chain and tech leasing will be explored.

17. Allocate Advanced Production Factors Globally

China will expand high-level opening up and use global markets. Free trade zones are encouraged to cluster advanced production factors from home and abroad based on their location, resources, and industrial strengths. Through multilateral and bilateral mechanisms, China will promote joint science parks, Belt and Road joint laboratories, and international advanced technology application centers, building a global innovation cooperation network. It will lead and participate in international big science programs. Foreign venture capital institutions and international standards organizations are encouraged to develop in China. An efficient, convenient, and secure cross-border data flow mechanism will be established.

18. Cultivate Talent for New Quality Productive Forces

The policy calls for integrated reform of education, science and technology, and talent systems. Higher education will be expanded with quality, new research universities developed, and disciplines adjusted according to industry and technology trends. Modern vocational education will be advanced with integrated work-study training. Enterprises and universities are encouraged to jointly customize talent training, and master craftsmen and highly skilled workers can serve as vocational school instructors.

Practical Takeaways for Foreign Founders

If you are registering or operating a company in China, these policy directions suggest several practical considerations:

• Entity structure matters: Many incentives, such as R&D super-deduction and participation in national projects, are designed for Chinese-registered enterprises. Choosing the right legal form and location is important.
• Sector focus: Advanced manufacturing, AI, green energy, digital economy, and future industries are highlighted. Align your business plan with these priorities where possible.
• R&D and commercialization: Opportunities may exist in pilot testing, application scenarios, and licensing from universities. Budget for IP protection and compliance.
• Data and cross-border flows: A more efficient cross-border data mechanism is promised, but rules will still apply. Plan your data governance early.
• Green compliance: Carbon accounting, labeling, and market mechanisms are expanding. Prepare for green certification and reporting requirements.
• Talent: Joint training with universities and vocational schools is encouraged. Consider partnerships to build local teams.

These are general policy directions, not specific entitlements. Implementation will vary by region and sector. Foreign founders should consult local authorities and professional advisors for their specific situation.

Need help registering or operating a company in China? ChinaMNC works with foreign founders on entity setup, compliance, and ongoing operations. Contact us on WhatsApp or WeChat at +86 153 1898 8535.

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