China Releases Blueprint to Promote Seven Emerging Industries
By Xiaolei Gu
Jun. 1 – The State Council approved the 12th Five-Year Plan on National Emerging Industries of Strategic Importance (hereinafter referred as “the Plan”) on May 30, outlining the directions and major tasks for seven strategically important emerging industries, including environmental protection, information technology, biology, high-end equipment manufacturing, new energy, new material, and new energy automobiles.
The Plan emphasizes the strategic significance of developing these emerging industries under the current economic transition notes that the development of these industries will stabilize the economic growth in this critical reform era. Details relating to each of the seven industries included in the Plan can be found below.
Directions and tasks for seven emerging industries of strategic importance
China’s energy-saving and environmental protection industry need breakthroughs in major core technologies, including energy efficiency and progression utilization, pollution prevention and secure settlement, as well as recycling and reuse of resources. Industry professionals should also research and develop more high-tech equipment and products for energy conservation, advanced environmental protection, and resource recycling and reuse. These professionals should also strive to promote green production and low carbon technology, and accelerate the formation of environmental protection as one of the country’s pillar industries.
Industry professionals should accelerate the construction of the next-generation’s information network and make technological breakthroughs in the fields of high speed fiber-optic communication, wireless communication, advanced semiconductors and new displays in order to add to the industry’s international competitiveness.
The development of China’s biology industry shall primarily serve the country’s major needs such as people’s health, agricultural development, and environmental and resource protection. The industry should also focus on strengthening key technologies such as biological resource sharing, and furthering equipment development to accelerate the construction of a modern biology industry.
High-end equipment manufacturing
China’s modern aviation equipment manufacturing and the satellite industry (with its related applications) are highlighted in the development plan for the high-end equipment manufacturing industry. The improvement of advanced transportation and oceanic engineering is also on top of the agenda. Furthermore, the Plan emphasizes the importance of advancing the manufacturing of intelligent equipment, as well as the intellectualization, precision, and green development of the manufacturing process.
The new energy sector should develop more mature technology in nuclear power, wind power, solar photovoltaics, thermal utilization, biomass electricity generation and methane gas so as to actively advance the industrialization of renewable resource technology.
Research and development of new functional materials, advanced structural materials, and composite materials; the development and industrialization of common basic materials; the construction of identification and statistical system; and the structural adjustment of material industry are all highlighted in the Plan for the development of the new materials industry.
New energy automobiles
The Plan points out the significance of promoting the technology advancement and application of key spare parts such as high-quality power batteries and electric motors, together with the industrialization of the new energy automobile industry.
Industry experts are very positive about the development of these emerging industries of strategic importance. According to the estimations of Zhou Zixue, economic analyst at the Ministry of Industry and Information Technology, these emerging industries of strategic importance will be worth RMB4.3 trillion by 2015 and RMB11.4 trillion by 2020. It is expected that these emerging industries will grow at an average year-on-year rate of 24.1 percent between 2011 and 2015, and an average rate of 21.3 percent between the 2016 and 2020. If the seven industries grow at the expected rate, they will become the biggest growth point of the Chinese economy over the next 10 years.
Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam as well as liaison offices in Italy and the United States.
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