Opinions of the CPC Central Committee and the State Council on Developing New Quality Productive Forces

Developing new quality productive forces is an inherent requirement and a key focus for promoting high-quality development. To accelerate the development of new quality productive forces, the following opinions are put forward.

I. General Requirements

We will follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly implement the spirit of the 20th CPC National Congress and all plenary sessions of the 20th CPC Central Committee, earnestly carry out the arrangements of the Fourth Plenary Session, and fully, accurately and comprehensively apply the new development philosophy. We will prioritize innovation, take reform as the key, act in light of local conditions, and establish the new before abolishing the old. We will pursue high-tech application, high efficiency and high quality. We will properly balance the relations between the government and the market, between quality forms and business forms, between reform and development, and between self-reliance and opening-up. We will coordinate development and security. Guided by scientific and technological innovation and marked by a substantial rise in total factor productivity, we will promote revolutionary technological breakthroughs, innovative allocation of production factors, and in-depth industrial transformation and upgrading. We will advance the optimized combination and upgrading of workers, means of labor and objects of labor. We will press ahead with innovation in science and technology, industry, development models, institutional mechanisms and talent development mechanisms in all respects. We will accelerate the formation of production relations better suited to new quality productive forces, foster a sound ecosystem conducive to the deep integration of scientific and technological and industrial innovation, and provide stronger support for high-quality development.

II. Vigorously Advancing Scientific and Technological Innovation

(1) Boost original and disruptive scientific and technological innovation

Guided by the global frontiers of science and technology, the main battlefield of the economy, major national needs and people’s life and health, we will launch major science and technology projects focusing on strategic, landmark and leading-edge products. We will attach equal importance to goal-oriented research and free exploration. Through organized basic research and applied basic research, we will shore up weaknesses in technical and engineering sciences, and support free exploratory basic research to blaze new trails. We will coordinate the development of sci-tech innovation platforms and bases, systematically deploy major sci-tech infrastructure, strengthen open sharing and avoid duplication and fragmentation. We will carry out programs for breakthroughs in basic and interdisciplinary disciplines. We will strengthen research on original theories and innovation in key generic technologies, cutting-edge leading technologies, modern engineering technologies and disruptive technologies.

(2) Accelerate breakthroughs in core technologies in key fields

We will leverage the strengths of the new system for mobilizing resources nationwide, launch high-quality development initiatives for key manufacturing industrial chains and industrial innovation projects in priority areas, and reinforce full-chain research, all-factor support and full-ecosystem development. We will fully implement policies for the application of the first set of major technical equipment and the first batch of new materials to facilitate technological iteration and upgrading.

(3) Coordinate the development of national strategic sci-tech forces

We will give play to the role of national laboratories in organizing major national sci-tech projects and building major national innovation platforms, and allow them to pilot institutional and mechanism reforms. Oriented toward national strategic needs, we will optimize the positioning and layout of national research institutes, high-level research universities and leading tech enterprises. We will gradually establish a remuneration system for universities and research institutes that stimulates innovation vitality, values knowledge, features standardized and effective management, and balances guarantees and incentives. We will advance reforms of national research institutes and high-level research universities in tandem to mobilize the enthusiasm of research institutions and researchers. Public institutions engaged in scientific research will be allowed to adopt more flexible management systems. We will give full play to the key role of leading tech enterprises in promoting deep integration of innovation chains, industrial chains, capital chains and talent chains.

(4) Reinforce enterprises’ principal role in sci-tech innovation

We will scale up inclusive incentive policies, establish an enterprise R&D reserve fund system, and strengthen enterprises’ leading role in sci-tech investment. We will encourage tech-based SMEs to increase R&D spending and raise the additional tax deduction ratio for corporate R&D expenses. Enterprise R&D projects that meet national strategic needs may be upgraded to national projects in accordance with procedures. Enterprises will be encouraged to take the lead in national sci-tech tasks, and capable private enterprises will be supported to spearhead national major technological research missions. We will build a mechanism for users to assess and evaluate research outcomes and strengthen enterprises’ principal role in commercializing research results. We will improve institutional arrangements for state-owned enterprises to advance original innovation and support the growth of specialized, sophisticated, unique and innovative SMEs.

(5) Accelerate the conversion of scientific and technological achievements into real productive forces

We will leverage the strengths of the ultra-large-scale market to facilitate efficient links between technologies and markets and promote the large-scale development of new quality productive forces. We will carry out large-scale demonstration initiatives for the application of new technologies, new products and new scenarios. We will build proof-of-concept and pilot verification platforms and expand the construction and opening of application scenarios. We will explore a full-cycle evaluation mechanism for sci-tech projects, integrate R&D and commercialization tasks at project initiation, and assess practical application performance at acceptance, so as to address the disconnect between technology development and outcome commercialization. We will guide universities and research institutes to license sci-tech achievements to micro, small and medium-sized enterprises under the “use first, pay later” model. Large enterprises will be encouraged to open their supply chains to SMEs and support SMEs to become an important force in the industrialization of research results. We will use artificial intelligence to lead the transformation of research paradigms and help improve research efficiency.

III. Promoting Deep Integration of Scientific and Technological and Industrial Innovation

(6) Transform and upgrade traditional industries

We will consolidate the foundation of the real economy and strengthen China’s manufacturing prowess. We will use upgraded national standards to guide the optimization and upgrading of traditional industries and support enterprises in transforming traditional sectors with digital, intelligent and green technologies. We will carry out quality improvement and upgrading initiatives for key industries and consolidate and elevate the position and competitiveness of mining, metallurgy, chemical, light, textile, machinery, shipbuilding and construction industries in the global industrial division of labor. We will implement the industrial foundation reengineering project, major technical equipment research project, major manufacturing technology transformation and upgrading project, and large-scale equipment renewal project. We will increase financial support for technological transformation of manufacturing enterprises and implement preferential tax policies for technology transformation investment, to advance the digital and intelligent transformation of manufacturing and develop smart, green and service-oriented manufacturing. We will enhance quality technology infrastructure capacity and strengthen brand building. We will further implement a new round of initiatives to raise grain output by 100 billion jin, seed industry revitalization, smart agriculture, high-quality development of agricultural machinery and equipment, modernization of facility agriculture, and agricultural sci-tech innovation infrastructure projects, and foster new forms such as agricultural factories. We will carry out initiatives to expand capacity and improve quality in the service sector, promote producer services to move toward specialization and the high end of value chains by sector, and support high-quality, diversified and convenient development of consumer services.

(7) Cultivate and expand emerging industries

We will foster emerging pillar industries. We will accelerate the development of strategic emerging industries including new-generation information technology, new energy, new materials, intelligent connected new-energy vehicles, robots, biomedicine, high-end equipment and aerospace. We will build clusters of strategic emerging industries with distinctive features and complementary strengths tailored to local conditions to drive resource aggregation, concentration of market entities, integration of achievements and division of labor and cooperation. We will deepen intra-industry and intra-product specialization, promote cross-industry and cross-regional integration, and avoid cutthroat competition. We will establish cross-regional industrial coordination mechanisms led by industrial chains and operated by enterprises, and support eastern regions to drive central, western and northeastern regions to develop emerging industries suited to local conditions. On the premise of ensuring security, we will promote the sound and orderly development of low-altitude economy and commercial aerospace.

(8) Make forward-looking arrangements for future industries

We will explore diversified technological routes, typical application scenarios, viable business models and market regulatory rules to advance future industries including quantum technology, bio-manufacturing, hydrogen energy and nuclear fusion energy, brain-computer interfaces, embodied intelligence and 6G communications, and accelerate the formation of relatively complete industrial ecosystems. We will establish mechanisms for investment growth and risk-sharing in future industries, fully leverage existing fiscal policies to support their development, and guide sustained increased investment from social capital.

(9) Promote deep integration of the real economy and digital economy

We will improve systems for identifying data property rights, market trading, benefit distribution and interest protection, carry out pilot demonstration projects related to data factors, and fully unleash the potential of data factors. We will optimize the layout, development and operation of national data infrastructure, further implement digital transformation initiatives for manufacturing, and launch projects including the East-to-West Computing Transfer initiative, smart manufacturing and innovative development of industrial internet. We will build a nationwide integrated computing power network and national blockchain network. We will improve policies to boost digital industrialization and industrial digitalization and build internationally competitive digital industrial clusters.

(10) Fully implement the AI Plus initiative

We will deploy AI to transform traditional industries and accelerate application scenarios for new-generation intelligent terminals such as intelligent connected new-energy vehicles, AI-enabled smartphones and computers, and humanoid robots. We will speed up innovation in digital and intelligent technologies represented by AI, achieve breakthroughs in basic theories and core technologies, and strengthen efficient supply of computing power, algorithms and data. We will build national pilot bases for industrial AI application and high-value use cases tailored to local conditions and different sectors, and vigorously promote AI adoption across all industries. A system for technology monitoring, risk early warning and emergency response will be established to ensure AI is safe, reliable and controllable.

IV. Striving to Promote Innovation in Development Models

(11) Build a green, low-carbon and circular economic system

We will strengthen green manufacturing, develop green services and expand the green energy industry. We will combine source reduction, process control and efficient end-of-pipe governance, advance the green transformation of key industries in a coordinated manner, and accelerate sci-tech innovation in green technologies and the popularization and application of advanced green technologies. We will improve incentive mechanisms for green consumption, strengthen the development of green product certification and labeling systems, raise green consumption levels, and drive the supply of green products via green consumption. We will build a number of zero-carbon factories and industrial parks. We will improve the system for total resource management and comprehensive conservation, and refine the waste recycling system.

(12) Optimize the policy toolkit for green development

We will implement fiscal, taxation, financial, investment, pricing, sci-tech and environmental policies to advance green and low-carbon development. We will improve mechanisms for realizing the value of ecological products, fully implement the system for controlling total carbon emissions and carbon intensity, and refine systems for carbon emission accounting, standards and metrology, product carbon labeling certification and product carbon footprint management. We will improve the carbon pricing mechanism with the national carbon market as the mainstay, expand the coverage of the national carbon emission trading market, optimize carbon quota allocation schemes, accelerate the development of the greenhouse gas voluntary emission reduction trading market, and improve the unified national green certificate market. Financial institutions will be encouraged to offer diversified green financial products. We will optimize government green procurement policies and improve green taxation. We will implement eco-oriented agricultural subsidy systems.

(13) Actively advance the energy revolution

Focused on the carbon peaking and carbon neutrality goals, we will develop advanced nuclear fission energy in an orderly manner, build a power system with a high share of renewable energy, improve policies and measures for new energy consumption and regulation, organize demonstration and promotion of major application scenarios, accelerate the green transition of energy use in production and daily life across society, advance revolutions in energy consumption, supply, technology and institutions, and strengthen international cooperation in all respects.

V. Solidly Advancing Institutional and Mechanism Innovation

(14) Deepen reforms focused on closer integration of science, technology and the economy

Sci-tech tasks will be deployed as required in major national engineering projects. We will improve demand-driven topic selection systems, management systems with aligned responsibilities, rights and benefits, and application-oriented evaluation systems. We will deepen reforms on the empowerment of job-related sci-tech achievements and separate asset management. Eligible state-owned enterprises will be allowed to carry out various forms of incentives. We will build an open, shared and secure nationwide integrated data market and an efficient technology market for outcome conversion, so as to facilitate the efficient aggregation and smooth flow of all types of advanced high-quality production factors.

(15) Improve market regulatory systems

We will refine market access rules and strengthen anti-monopoly and anti-unfair competition enforcement. We will strengthen governance in AI, biotechnology and other fields. We will reinforce cross-departmental joint regulation, innovate regulatory methods, reduce on-site inspections, explore a regulatory model of “data-driven decision-making and administration”, and raise the intelligent level of cross-departmental comprehensive regulation. We will establish an efficient comprehensive intellectual property management system and improve the punitive compensation system. We will study tax systems adapted to new business forms.

(16) Increase supply of innovative financial products

We will encourage and standardize the development of angel investment, venture capital and private equity investment, better leverage the guiding and catalytic role of government investment funds, improve supportive policies for long-term capital to invest in early-stage, small-scale, long-term and hard-tech projects, and expand patient capital. Banks will be encouraged to develop loan products suited to the features of new quality productive forces. We will enrich the product portfolio of sci-tech innovation bonds, support qualified tech enterprises in listing and financing, and optimize systems for M&A and equity incentives of tech firms. We will develop insurance products covering the whole chain of sci-tech innovation and explore businesses such as tech leasing.

(17) Allocate advanced production factors globally

We will expand high-level opening-up and explore and leverage global markets. Pilot free trade zones will be encouraged to gather advanced domestic and foreign production factors in light of their geographical features, resource endowments and industrial strengths. We will leverage various multilateral and bilateral cooperation mechanisms to promote joint development of sci-tech parks, Belt and Road joint laboratories, international advanced technology application promotion centers and other platforms, and proactively build a global innovation cooperation network. We will take the lead in and actively participate in major international science programs and projects. Foreign venture capital institutions and international standards organizations will be encouraged to set up operations in China. We will establish an efficient, convenient and secure mechanism for cross-border data flows.

VI. Deepening Innovation in Talent Development Mechanisms

(18) Cultivate talents urgently needed for developing new quality productive forces

We will coordinate integrated reforms of the education, science and technology and talent systems. We will advance quality improvement and expansion of higher education, develop new types of research universities, and optimize mechanisms for adjusting disciplines and majors in universities in line with industrial and sci-tech trends. We will promote high-quality development of modern vocational education and fully implement the work-integrated training model for skilled personnel. Talents will be nurtured through practice. Enterprises and universities will be encouraged to jointly develop customized talent training programs. Master craftsmen and highly skilled personnel will be supported to serve as part-time internship instructors at vocational schools. We will give full play to the important role of science popularization in improving workers’ quality.

(19) Improve policies for talent employment and mobility

We will implement preferential tax policies, improve the lifelong vocational skills training system, carry out manufacturing talent support programs and professional technical personnel knowledge renewal projects, and support employers in talent training. We will accelerate the moderate decoupling of assessment, evaluation and incentive systems for researchers from project applications, paper publication and award evaluation, and prevent remuneration, professional titles and benefits from being simply determined by talent “titles”. We will break various hidden barriers and unblock channels for talent exchange among universities, research institutes and enterprises. We will improve the “new eight-grade worker” vocational skill grading system and smooth the upward development path for industrial workers.

VII. Strengthening Organization and Implementation

All regions and relevant departments must uphold the centralized, unified leadership of the Party Central Committee, foster the mindset of nationwide coordination, act in light of local conditions, strengthen categorized guidance and coordination for priority areas, and optimize the layout of major productive forces. We will establish the new before abolishing the old and pursue progress while ensuring stability. We must guard against shifting away from the real economy toward virtual gains, blind pursuit of grandiose targets and bubble formation. We must avoid industrial hollowing-out or industrial gaps, refrain from blind pursuit of novelty at the expense of other priorities. Leading cadres at all levels must establish and practice a correct view of political performance, explore development paths based on realities, and are prohibited from misusing policies in the name of developing new quality productive forces. Those who cause heavy losses due to herd investment and blind expansion will be held accountable. Departments shall strengthen coordination and form concerted work synergy. The General Office of the Central Financial and Economic Affairs Commission and the National Development and Reform Commission will coordinate theoretical research, strategic planning, cross-regional and cross-departmental coordination, tracking, monitoring and evaluation. Experience and practices will be summarized in a timely manner, publicity and promotion will be strengthened to create a sound atmosphere. Major matters shall be reported to the CPC Central Committee and the State Council for instructions in accordance with procedures.

Source: Shanghai Securities News