Published by ChinaMNC · Donghai

China's 15th Five-Year Plan Special Plans: What Foreign Founders Need to Know About New Quality Productive Forces

A guide for foreign entrepreneurs on how China's 15th Five-Year Plan special plans support new quality productive forces, with practical implications for company registration and operations.

China's Push for 'New Quality Productive Forces': Key Takeaways for Foreign Founders

China's 15th Five-Year Plan (2026-2030) has placed 'new quality productive forces' at the center of its economic strategy. For foreign founders looking to register or operate a company in China, understanding these policy directions can help align business plans with national priorities and identify opportunities in emerging sectors.

What Are 'New Quality Productive Forces'?

New quality productive forces refer to growth driven by technological innovation, advanced manufacturing, and emerging industries. The 15th Five-Year Plan outlines a roadmap to accelerate high-level scientific and technological self-reliance and lead the development of these forces. National-level special plans and local plans have made this a key focus, with concrete arrangements tailored to local conditions.

Recent examples of innovation include the construction of the world's largest 27.1 million cubic meter LNG carrier in China, the release and global first mass production of T1200-grade ultra-high-strength carbon fiber, and the quantum computing prototype 'Jiuzhang No. 4' setting a new world record in optical quantum information technology.

Policy Support for Technological Breakthroughs

Science and technology innovation is identified as the core element. The Central Committee of the Communist Party of China and the State Council issued the 'Opinions on Developing New Quality Productive Forces,' with 'vigorously advancing scientific and technological innovation' listed as the top task. Several special plans focus on breaking through key core technologies:

• Information and Communication Industry Development 15th Five-Year Plan: Accelerate R&D on 6G core technologies and continue 6G technology trials.
• Railway Science and Technology Innovation 15th Five-Year Plan: Conduct research on systematic key core technologies oriented to national strategies, exploratory technologies with frontier orientation, and applied technologies with market orientation.
• New Battery Industry Development 15th Five-Year Plan: Includes a column on 'common and key technology improvement' detailing breakthroughs in all-solid-state battery technology.
• National Informatization 15th Five-Year Plan: Lists the 'Network and Information Technology Innovation Breakthrough Project' as a column, with specific research targets in basic software, industrial software, and intelligent technologies.

These plans target bottlenecks in industrial chains, focusing on integrated circuits, industrial mother machines, and advanced materials, leveraging the new nationwide system to pool resources.

Integrating Innovation with Industry

Modern industrial systems are the fertile ground for new quality productive forces. Special plans emphasize deep integration of technological and industrial innovation, aiming to accelerate the transformation of scientific results into real productivity. For example:

• Electronic Information Manufacturing Development 15th Five-Year Plan: Supports building pilot testing platforms and application verification centers for electronic components and materials.
• Intellectual Property Protection and Utilization 15th Five-Year Plan: Guides the formation of industry intellectual property innovation consortia.
• New Energy System Construction 15th Five-Year Plan: Encourages large-scale application of independently innovative products.

These measures span from laboratory research to industrialization, helping innovations move quickly from lab to market.

Strengthening the Role of Enterprises

The plans repeatedly emphasize enhancing enterprises' principal role in innovation. Measures include supporting enterprises to lead national science and technology tasks in information and communication, encouraging joint research among pharmaceutical companies, universities, research institutes, and medical institutions, and supporting qualified enterprises and research institutes to establish global innovation platforms. The goal is to concentrate innovation resources in enterprises and transform technological advantages into productivity advantages.

Reform of Systems and Mechanisms

Institutional innovation is crucial. Special plans aim to remove barriers to the flow of talent, capital, data, and technology. For instance:

• Human Resources and Social Security Development 15th Five-Year Plan: Supports and encourages researchers from institutes and universities to engage in technological innovation and commercialization in enterprises.
• People's Bank of China 15th Five-Year Plan for Reform and Development: Focuses on building a science and technology finance system compatible with innovation, and high-quality development of the bond market's 'science and technology board.'
• Intellectual Property Protection and Utilization 15th Five-Year Plan: Promotes examination information sharing and data exchange with Belt and Road countries and regions.

Additionally, plans address market order: the Electronic Information Manufacturing plan includes measures to coordinate capacity planning and early warning, and to comprehensively address 'involutionary' competition; the New Power System Construction plan proposes regulating the scope of natural monopoly and competitive businesses of grid companies.

Practical Implications for Foreign Founders

For foreign entrepreneurs, these policy directions signal opportunities in high-tech and strategic emerging industries. When considering company registration in China, it's important to note:

• Sector focus: Plans prioritize sectors like 6G, new batteries, electronic information, new energy, and intelligent connected vehicles. Foreign investment in these areas may benefit from supportive policies.
• Innovation collaboration: Enterprises are encouraged to lead innovation and collaborate with universities and research institutes. Foreign founders can explore partnerships to access talent and resources.
• IP protection: Strengthened IP protection and utilization measures can provide a more secure environment for technology transfer and commercialization.
• Financial support: Development of science and technology finance, including a bond market 'science and technology board,' may offer financing avenues for innovative companies.
• Compliance: Plans also emphasize regulating market order and addressing unfair competition, so foreign companies should ensure compliance with local laws and regulations.

As the plans are implemented, local governments will roll out specific measures. Foreign founders should monitor local policies and consider engaging professional services for company setup and ongoing compliance.

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

For assistance with registering and operating a company in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.