China's strategic emerging industries

On July 9 2012, the State Council of China released the Circular on the Planning and Development of Strategic Emerging Industries of the 12th Five-year Plan (国务院发布《“十二五”国家战略性新兴产业发展规划》). The Circular is essentially a business plan to realise the innovation goals set forth in China's 12th Five-year Plan, which was issued in March 2011. It outlines priorities and tasks for the development of the strategic emerging industries (SEIs) that have been identified by the Chinese government as key engines of growth for the Chinese economy. The SEIs cover at least seven industries: (1) energy-efficient, green technologies; (2) next-generation information technology; (3) pharmaceuticals and biotechnology; (4) high-end equipment manufacturing; (5) new energy; (6) new materials; and (7) new-energy vehicles. The Circular also specifies 20 strategically important projects for government support, including those related to aviation, new-energy vehicles, broadband, cloud computing, and the Internet of Things. The government plans to provide fiscal and financial support to the SEIs, with a focus on improving technological innovation and creating a strong policy environment to promote market reforms to support investment in the SEIs.

The Chinese government plans to invest US$1.5 trillion in SEIs until 2015 and most sectors are expected to be open to foreign investment. The Circular makes it clear that there are opportunities for foreign firms to invest in the SEIs and that foreign-invested entities in China are eligible for participation in the SEIs.