Нийтлэгдсэн · Mongolian
China’s New Push to Integrate Tech and Industry: What Foreign Founders Need to Know
A practical guide for foreign founders on China’s latest policy to deepen the integration of technological and industrial innovation, covering enterprise-led R&D, financing, talent, and market access.
China’s New Push to Integrate Tech and Industry: What Foreign Founders Need to Know
The Chinese government has issued a comprehensive opinion aimed at deepening the integration of technological and industrial innovation. For foreign founders registering or operating a company in China, this policy signals evolving opportunities and compliance considerations across R&D, financing, talent, and market access. Below is a practical summary of the key measures, based solely on the official document.
Strengthening Enterprise-Led Innovation
The policy emphasizes the dominant role of enterprises in innovation. Specific measures include:
- Enterprise participation in strategy: Companies will have a regularized channel to contribute to national science and technology (S&T) and industrial development strategies, plans, and policies.
- Access to funding: The National Natural Science Foundation will pilot opening to private enterprises. The scope and scale of enterprise innovation development joint funds will be expanded.
- R&D incentives: Small and medium-sized tech enterprises are encouraged to increase R&D investment, with a higher ratio of R&D expense super-deduction. State-owned enterprises are encouraged to establish R&D reserve funds with independent accounting, exemption from value-preservation assessments, and error tolerance.
- Platforms and infrastructure: Enterprises are supported to lead the construction of S&T innovation platforms. National major science infrastructure, large research instruments, and national science data centers will be more open to enterprises.
- Talent support: Various S&T talent programs will increase support for enterprises, and enterprise post-doctoral workstations will be strengthened.
Foreign founders should note that these measures apply to enterprises registered in China, including foreign-invested ones, and can be leveraged to enhance local R&D capabilities.
Reforming Project Organization and Evaluation
National S&T projects will become more industry-oriented. Companies can expect:
- Regular collection of enterprise needs, with more experts from enterprises and venture capital institutions involved in guideline drafting, project review, and acceptance.
- Improved management rules for enterprise-led projects, including mechanisms like "open competition" (揭榜挂帅), "owner responsibility" (业主制), milestone management, and phased funding.
- A project acceptance mechanism that assesses technology by application and products by market, integrating R&D and industrialization goals.
Foreign founders involved in national projects may find more entry points, but should prepare for outcome-oriented evaluation.
Accelerating Commercialization of Research Results
To bridge the gap between research and market, the policy introduces:
- For national S&T projects with clear industrial application goals, enterprises will generally lead implementation and commercialization.
- Universities and research institutes are encouraged to set up technology transfer offices, strengthen IP and incubation services, and use mechanisms like licensing and equity investment to speed up application.
- Reforms on ownership of job-related scientific achievements and separate asset management will be deepened. A "use first, pay later" approach for licensing results to SMEs is encouraged.
- A nationwide integrated technology market will be developed, with professional technology transfer institutions and technology managers.
Foreign companies can tap into these channels to access technologies or license their own.
Scenario-Driven Innovation and Market Access
The policy promotes application scenarios as a driver of innovation. Measures include:
- Demonstration actions for new technologies, products, and scenarios, with greater scenario cultivation and opening.
- Support for local governments to open scenarios in government services, smart cities, and rural construction.
- Pilot programs to relax market access for new business forms, exploring a "commitment-based entry" system.
- Exploration of "sandbox regulation" for new technologies.
- Improving laws and regulations in frontier fields like AI and biotechnology, and enhancing ethics rules.
Foreign founders should monitor local pilot policies, which may offer easier market entry for innovative products.
Key Technology Breakthroughs and Industrial Upgrading
The document identifies priority areas for breakthroughs: integrated circuits, industrial mother machines, high-end instruments, advanced materials, and biomanufacturing. It also calls for:
- Revitalizing industrial foundations and tackling major technical equipment.
- Developing strategic emerging industries like new energy, new materials, and aerospace, and fostering future industries in quantum tech, biomanufacturing, hydrogen and nuclear fusion, brain-computer interfaces, embodied intelligence, and 6G.
- Transforming traditional industries with advanced technologies, including the "AI+" initiative to empower all sectors.
Foreign companies in these sectors may find opportunities for collaboration or investment, but should also be aware of strategic priorities.
Financial and Talent Support
To fuel innovation, the policy outlines:
- A sci-tech finance system matching the full lifecycle of tech companies.
- Government-guided venture capital funds focusing on early-stage, small, long-term, and hard-tech investments, with relaxed assessments.
- Promotion of the "innovation points system" to quantify SME innovation capacity.
- A high-quality "tech board" in the bond market and a sci-tech insurance policy system.
- Reforms in talent cultivation: adjusting academic disciplines with industry input, promoting university-enterprise joint training, and allowing researchers to take leave to start businesses.
Foreign founders can explore these financing channels and talent programs, but should ensure compliance with local regulations.
Building Collaborative Platforms and Protecting IP
The policy supports the construction of:
- National new industry innovation centers, industrial technology engineering centers, technology innovation centers, and manufacturing innovation centers.
- Concept validation centers and pilot testing platforms.
- New R&D institutions developed locally.
On intellectual property, it calls for:
- Stronger protection of trade secrets and IP in new business forms.
- Full implementation of the patent open licensing system.
- Standard layout for major national S&T projects and enhanced development of national and international standards in frontier fields.
Foreign companies should integrate IP protection into their China strategy.
Local Pilots and Regional Collaboration
Local governments are encouraged to pilot deep integration reforms. National high-tech zones and self-innovation demonstration zones will test policies. International and regional S&T innovation centers and qualified localities will carry out pilot reforms. This means foreign founders may find differentiated policies across regions, so location choice matters.
Conclusion
This policy framework reinforces China’s focus on enterprise-led innovation, commercialization, and strategic sectors. Foreign founders should assess how these measures align with their business plans, engage with local authorities for pilot opportunities, and ensure compliance. For assistance with company registration and operations in China, foreign founders can contact ChinaMNC on WhatsApp / 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.