Published by ChinaMNC · Xushui

China’s New Push to Link Tech Innovation and Industry: What Foreign Founders Should Know

A practical overview of China’s latest policy opinions on integrating scientific and technological innovation with industrial innovation, with implications for foreign founders registering and operating companies in China.

Why This Policy Matters for Foreign Founders

China’s central authorities have issued a broad set of opinions on linking scientific and technological innovation more closely with industrial innovation. The document is framed around building a modern industrial system and developing “new quality productive forces,” with enterprises expected to play a leading role alongside universities, research institutes, and other participants. For foreign founders considering company registration or already operating in China, the policy signals where government attention, funding tools, and regulatory experimentation are likely to focus.

The source text sets out principles rather than binding rules for foreign investors. It emphasizes systematic planning, aligning technology supply with demand, strengthening the enterprise role in innovation, and removing institutional barriers through reform. Foreign founders should treat it as a directional document and confirm specific requirements with local authorities and professional advisers.

How Innovation Tasks Are Organized

The policy calls for better coordination across science and technology plans, major tasks, and policy measures. In key frontier fields, major policies, projects, and programs for technology and industry are to be planned together. It also calls for coordination across technology, industry, finance, education, and talent policies, and for monitoring and evaluation of how well technology and industry innovation are integrated at local and sectoral levels.

On task organization, national science and technology programs are to give more weight to industrial application. Enterprise needs are to be solicited on a regular basis, and experts from companies and venture capital institutions are to be reasonably added to guideline drafting, project review, and acceptance. The document also mentions enterprise-led project management rules, “open challenge” mechanisms, “owner” systems, milestone management, and phased funding. Project acceptance is to assess both technology application and market performance of products.

Commercializing Research and Opening Scenarios

The policy seeks smoother routes from research results to application. For national science and technology projects with clear industrial goals, enterprises are in principle to lead implementation and commercialization. Universities and research institutes are encouraged to set up technology transfer offices or roles and to use licensing, assignment, and equity investment to speed application. Reforms to give researchers rights to job-related scientific and technological achievements and to manage such assets separately are to be deepened. Universities and research institutes are encouraged to license results to small and medium-sized enterprises on a “use first, pay later” basis. A nationwide integrated technology market, professional transfer institutions, and technology manager teams are also envisaged.

On demand-side measures, the policy calls for demonstration actions for new technologies, products, and scenarios, with greater scenario development and opening. Local governments are encouraged to open application scenarios in government services, smart cities, and rural construction, and to improve the publication of supply and demand information for technologies and scenarios.

Priority Industries and Enterprise Capabilities

The document identifies key technology breakthroughs in integrated circuits, industrial mother machines, high-end instruments, advanced materials, and biomanufacturing. It calls for industrial base再造 and major equipment programs, with attention to basic components, key basic software, key basic materials, advanced basic processes, and industrial technology foundations.

For emerging and future industries, it points to basic research and underlying technology development, disruptive technology identification, and industrial innovation projects. New energy, new materials, and aerospace are named as strategic emerging industries, with support for distinctive industrial clusters. The low-altitude economy is to develop in a healthy and orderly way. Frontier fields include quantum technology, biomanufacturing, hydrogen and nuclear fusion energy, brain-computer interfaces, embodied intelligence, and sixth-generation mobile communications, where multiple technology routes, typical application scenarios, and viable business models are to be explored.

Traditional industries are to be upgraded through major manufacturing technology transformation and large-scale equipment renewal, industrial internet development, and deeper integration of the digital and real economies. Agriculture, including seed industry and agricultural machinery research, is also covered. A nationwide “AI+” action is to apply artificial intelligence across sectors.

Enterprise Participation and Support

The policy calls for enterprises to participate regularly in national science and technology and industrial development strategy, planning, and policy making. The National Natural Science Foundation is to pilot opening to private enterprises, and enterprise innovation development joint funds are to be expanded. State-owned enterprises are encouraged to establish R&D reserve funds with independent accounting, exemption from value-preservation assessments, and error tolerance. Technology-based small and medium-sized enterprises are encouraged to increase R&D spending, with a higher additional tax deduction ratio for R&D expenses. Enterprises are supported in leading science and technology innovation platforms, and national major science facilities, large research instruments, and national science data centers are to be opened to enterprises. Talent programs and enterprise postdoctoral stations are also mentioned.

On enterprise cultivation, the document covers technology-leading enterprises, high-tech enterprises, specialized and sophisticated “little giant” enterprises, and manufacturing single-champion enterprises. It encourages large enterprises to open R&D platforms, application scenarios, and supply chains to smaller firms and to pilot their innovative products first.

Finance, Talent, Platforms, and Local Pilots

The policy envisages a science and technology finance system matched to the financing needs of technology companies across their life cycle. The national venture capital guidance fund is to play a role; government-funded and state-owned venture capital funds are to invest early, in small firms, for the long term, and in hard technology, with long-cycle assessment, differentiated supervision, and exit mechanisms. An “innovation points” system is to be promoted to assess the innovation capacity of technology-based SMEs. A high-quality “technology board” in the bond market and a science and technology insurance policy system are also mentioned.

Talent measures include joint university-enterprise training, work-study alternation, dual mentors, temporary and part-time posts, and off-post entrepreneurship for researchers. Universities and research institutes may hire enterprise innovators as industry mentors or professors. Young scientists and technology entrepreneurs are to be supported.

Platforms to be developed include national emerging industry innovation centers, national industrial technology engineering centers, national technology innovation centers, and national manufacturing innovation centers. Proof-of-concept centers and pilot testing platforms are to serve industrialization. Local new-type R&D institutions are to be developed in a regulated way.

On the market environment, the policy calls for removing unreasonable barriers to innovative products, piloting relaxed market access and “commitment-based entry” in new business forms, and exploring sandbox regulation. Laws and regulations for artificial intelligence and biotechnology are to be improved, along with science ethics rules. Intellectual property protection is to be strengthened, including trade secrets and new business forms, with benefit-sharing and risk-sharing mechanisms in industry-university-research cooperation. The patent open licensing system is to be fully implemented, and standard-setting is to be strengthened for national and international standards in frontier fields.

Local pilot programs are encouraged. The policy calls for macro guidance on local technology and industrial layouts, central-local coordination, shared investment, and linked implementation of major tasks. National high-tech zones, national independent innovation demonstration zones, international and regional science and technology innovation centers, and qualified localities may carry out pilot reforms. The document also mentions building innovative cities and original innovation sources.

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