The State Council’s Decision on Accelerating the Cultivation and Development of Strategic Emerging Industries

The State Council on accelerating cultivation and development
The decision of strategic emerging industries

Guo Fa [2010] No.32

People’s governments of all provinces, autonomous regions and municipalities directly under the Central Government, ministries and commissions and institutions directly under the State Council:

  Strategic emerging industries are an important force to guide future economic and social development. Developing strategic emerging industries has become a major strategy for major countries in the world to seize the commanding heights of the new round of economic and technological development. China is in the critical period of building a well-off society in an all-round way. We must seize the opportunity, make clear the direction, highlight the key points and accelerate the cultivation and development of strategic emerging industries according to the requirements of Scientific Outlook on Development. The following decisions are made:

  First, seize the opportunity to accelerate the cultivation and development of strategic emerging industries

  Strategic emerging industries are based on major technological breakthroughs and major development needs, which have a major leading role in the overall economic and social development and long-term development. They are industries with intensive knowledge and technology, less consumption of material resources, great growth potential and good comprehensive benefits. Accelerating the cultivation and development of strategic emerging industries is of great strategic significance for promoting China’s modernization drive.

  (1) Accelerating the cultivation and development of strategic emerging industries is an inevitable choice for building a well-off society in an all-round way and realizing sustainable development. China has a large population, less per capita resources, fragile ecological environment, and is in the period of rapid development of industrialization and urbanization, facing the arduous task of improving people’s livelihood and the great pressure of resources and environment. To build a well-off society in an all-round way and realize sustainable development, we must vigorously develop strategic emerging industries, accelerate the formation of new economic growth points, create more jobs, better meet the people’s growing material and cultural needs, and promote the construction of a resource-saving and environment-friendly society.

  (2) Accelerating the cultivation and development of strategic emerging industries is an important measure to promote the upgrading of industrial structure and accelerate the transformation of economic development mode. Strategic emerging industries are mainly driven by innovation, with strong radiation driving force. Accelerating the cultivation and development of strategic emerging industries is conducive to accelerating the transformation of economic development mode, upgrading industrial levels, promoting the upgrading of traditional industries, and building a modern industrial system from a high starting point, which embodies the fundamental requirements for adjusting and optimizing industrial structure.

  (3) Accelerating the cultivation and development of strategic emerging industries is an urgent need to build new advantages in international competition and grasp the initiative in development. At present, the global economic competition pattern is undergoing profound changes, and the development of science and technology is gestating new revolutionary breakthroughs. Major countries in the world have accelerated their deployment to promote the rapid development of emerging industries such as energy conservation and environmental protection, new energy, information and biology. In order to occupy a favorable position in the future international competition, China must speed up the cultivation and development of strategic emerging industries, master key core technologies and related intellectual property rights, and enhance its ability of independent development.

  Accelerating the cultivation and development of strategic emerging industries has many advantages, but also faces severe challenges. After more than 30 years of rapid development of reform and opening up, China’s comprehensive national strength has been significantly enhanced, and its scientific and technological level has been continuously improved. A relatively complete industrial system has been established, especially high-tech industries, which have developed rapidly and ranked among the top in the world in scale, laying a good foundation for accelerating the development of strategic emerging industries. At the same time, it also faces some outstanding problems, such as the weak technological innovation ability of enterprises, the lack of key core technologies, the imperfect policies and regulations system conducive to new technologies and new products entering the market, and the imperfect investment and financing, fiscal and taxation policies and institutional mechanisms to support innovation and entrepreneurship. We must fully understand the great significance of accelerating the cultivation and development of strategic emerging industries, further enhance our sense of urgency and responsibility, seize the historical opportunity, intensify our work, and accelerate the cultivation and development of strategic emerging industries.

  Second, adhere to innovation and development, and accelerate the cultivation of strategic emerging industries into leading industries and pillar industries.

  According to the characteristics of strategic emerging industries, based on China’s national conditions, science and technology and industrial foundation, we will focus on cultivating and developing industries such as energy conservation and environmental protection, new generation information technology, biology, high-end equipment manufacturing, new energy, new materials and new energy vehicles at this stage.

  (1) Guiding ideology.

  Guided by Deng Xiaoping Theory and Theory of Three Represents, we should thoroughly implement the Scientific Outlook on Development, seize the historical opportunity of the new scientific and technological revolution and industrial revolution in the world, face the great demand of economic and social development, and put accelerating the cultivation and development of strategic emerging industries in a prominent position in promoting the upgrading of industrial structure and the transformation of economic development mode. Actively explore the development law of strategic emerging industries, give full play to the main role of enterprises, increase policy support, deepen institutional reform, strive to create a good environment, strengthen the industrialization of scientific and technological innovation achievements, seize the commanding heights of economic and technological competition, promote the rapid and healthy development of strategic emerging industries, and make contributions to promoting sustainable economic and social development.

  (2) Basic principles.

  Adhere to the combination of giving full play to the basic role of the market and government guidance and promotion. We should give full play to the huge advantages of China’s market demand, innovate and change consumption patterns, create a good market environment, mobilize the enthusiasm of enterprises, and promote the combination of Industry-University-Research and consumption. At the same time, for the important areas and key links related to the overall economic and social development, the government should play the role of planning guidance, policy incentives and organization and coordination.

  Adhere to the combination of scientific and technological innovation and industrialization. It is necessary to effectively improve the system and mechanism, greatly enhance the ability of independent innovation, focus on promoting original innovation, vigorously enhance integrated innovation and joint research, actively participate in international division of labor and cooperation, strengthen the introduction, digestion, absorption and innovation, make full use of global innovation resources, break through a number of key core technologies, and master relevant intellectual property rights. At the same time, it is necessary to strengthen policy support, coordination and guidance, create and give full play to the role of high-quality talent teams, accelerate the transformation of innovation achievements, and promote the process of industrialization.

  Adhere to the combination of overall promotion and leapfrog development in key areas. It is necessary to make overall planning and systematic layout for the development of strategic emerging industries, clarify the development sequence and promote coordinated development. At the same time, we should choose the fields with the most foundation and conditions as a breakthrough and focus on promoting them. Vigorously cultivate industrial clusters and promote the development of advantageous regions.

  Adhere to the combination of enhancing the long-term competitiveness of the national economy and supporting current development. We should focus on the long-term, grasp the new direction of science, technology and industrial development, deploy major frontier fields as soon as possible, and actively cultivate leading industries. At the same time, based on the current situation, we should promote the rapid development of related industries that have a significant role in easing the bottleneck of economic and social development, promote the healthy development of high-tech industries, promote the transformation and upgrading of traditional industries, and accelerate the formation of pillar industries.

  (3) development goals.

  By 2015, strategic emerging industries will form a basic pattern of healthy development and coordinated promotion, which will significantly enhance the promotion of industrial structure upgrading, and the proportion of added value in GDP will strive to reach about 8%.

  By 2020, the added value of strategic emerging industries will account for about 15% of GDP, and the ability to absorb and drive employment will be significantly improved. Energy-saving and environmental protection, next-generation information technology, biology and high-end equipment manufacturing industries have become the pillar industries of the national economy, and new energy, new materials and new energy automobile industries have become the leading industries of the national economy; The innovation ability has been greatly improved, and a number of key core technologies have been mastered, reaching the world leading level in some fields; Form a group of large enterprises with international influence and a group of small and medium-sized enterprises with vigorous innovation; A number of strategic emerging industrial clusters with perfect industrial chain, strong innovation ability and distinctive features will be built.

  After about ten years’ efforts, the overall innovation ability and industrial development level of strategic emerging industries have reached the world advanced level, providing strong support for sustainable economic and social development.

  Three, based on national conditions, and strive to achieve rapid and healthy development in key areas.

  According to the development stages and characteristics of strategic emerging industries, it is necessary to further clarify the key directions and main tasks of development, make overall arrangements, concentrate on efforts, and accelerate progress.

  (1) Energy conservation and environmental protection industries. Focus on the development and promotion of high-efficiency energy-saving technical equipment and products, achieve key technological breakthroughs in key areas, and promote the overall level of energy efficiency. Accelerate the research and development and industrialization demonstration of key common technologies for resource recycling, and improve the level of comprehensive utilization of resources and industrialization of remanufacturing. Demonstration and promotion of advanced environmental protection technology, equipment and products to improve the level of pollution prevention and control. Promote the construction of a market-oriented energy-saving and environmental protection service system. We will accelerate the establishment of a recycling system for waste commodities supported by advanced technology, and actively promote clean utilization of coal and comprehensive utilization of seawater.

  (2) A new generation of information technology industry. Accelerate the construction of broadband, ubiquitous, integrated and secure information network infrastructure, promote the research and development and industrialization of next-generation mobile communication, next-generation Internet core equipment and intelligent terminals, accelerate the integration of the three networks, and promote the research and development and demonstration application of the Internet of Things and cloud computing. Focus on developing core basic industries such as integrated circuits, new displays, high-end software and high-end servers. Improve the information service capabilities such as software services and network value-added services, and accelerate the intelligent transformation of important infrastructure. Vigorously develop technologies such as digital virtualization to promote the development of cultural and creative industries.

  (3) Biological industry. Vigorously develop innovative drugs such as biotechnological drugs, new vaccines and diagnostic reagents, chemical drugs and modern Chinese medicines for the prevention and treatment of major diseases, and improve the level of biomedical industry. Accelerate the research and development and industrialization of biomedical engineering products such as advanced medical equipment and medical materials, and promote large-scale development. Focus on cultivating biological breeding industry, actively promote green agricultural biological products, and promote the accelerated development of biological agriculture. Promote the development, demonstration and application of key technologies in bio-manufacturing. Accelerate the research and development and industrialization of marine biotechnology and products.

  (four) high-end equipment manufacturing industry. Focus on the development of aviation equipment mainly based on trunk regional aircraft and general-purpose aircraft, and make the aviation industry bigger and stronger. Actively promote the construction of space infrastructure and promote the development of satellite and its application industry. Relying on the construction of key projects such as passenger dedicated lines and urban rail transit, we will vigorously develop rail transit equipment. Facing the development of marine resources, we will vigorously develop marine engineering equipment. Strengthen the basic supporting capacity and actively develop intelligent manufacturing equipment with digitalization, flexibility and system integration technology as the core.

  (5) New energy industry. Actively research and develop a new generation of nuclear energy technology and advanced reactors to develop nuclear system. Accelerate the popularization and application of solar thermal utilization technology and open up a diversified solar photovoltaic photothermal power generation market. Improve the level of wind power technology and equipment, promote the large-scale development of wind power in an orderly manner, and accelerate the construction of smart grid and operation system adapted to the development of new energy. Develop and utilize biomass energy according to local conditions.

  (6) New material industry. Vigorously develop new functional materials such as rare earth functional materials, high-performance film materials, special glass, functional ceramics and semiconductor lighting materials. Actively develop advanced structural materials such as high-quality special steel, new alloy materials and engineering plastics. Improve the development level of high-performance fibers such as carbon fiber, aramid fiber and ultra-high molecular weight polyethylene fiber and their composites. Carry out research on common basic materials such as nano, superconductivity and intelligence.

  (7) New energy automobile industry. Efforts will be made to break through key core technologies in the fields of power batteries, drive motors and electronic control, and promote the popularization, application and industrialization of plug-in hybrid electric vehicles and pure electric vehicles. At the same time, carry out research and development of cutting-edge technologies related to fuel cell vehicles, and vigorously promote the development of energy-efficient and low-emission energy-saving vehicles.

  Fourth, strengthen scientific and technological innovation and enhance the core competitiveness of the industry

  Strengthening the ability of independent innovation is the central link to cultivate and develop strategic emerging industries. We must improve the technological innovation system with enterprises as the main body, market as the guide and Industry-University-Research as the combination, give play to the core leading role of major national science and technology projects, break through key core technologies in combination with the implementation of industrial development planning, strengthen the industrialization of innovation achievements, and enhance the core competitiveness of industries.

  (1) Strengthen the research on key core technologies and cutting-edge technologies of the industry. Focusing on the major needs of economic and social development, combined with the implementation of national science and technology plans, knowledge innovation projects and natural science fund projects, we will concentrate on breaking through a number of key common technologies that support the development of strategic emerging industries. Advance deployment in basic and cutting-edge technical fields such as biology, information, aerospace, ocean and deep earth, strengthen research and development of technologies and products in cross-cutting fields, and improve the research level of basic technologies.

  (2) Strengthening the technological innovation capability of enterprises. Increase the investment in enterprise research and development, and establish an effective mechanism for the application-oriented government science and technology plan projects with clear market prospects, led by key enterprises, scientific research institutions and universities to participate in the implementation. Relying on key enterprises, focusing on the research and development of key core technologies and system integration, we will support the construction of a number of engineering platforms with world advanced level, and develop a number of industrial technology innovation alliances led by enterprises with the active participation of scientific research institutions and universities in combination with the implementation of technological innovation projects. Strengthen the guidance of fiscal and taxation policies and encourage enterprises to increase investment in research and development. Strengthen the construction of public technical service platform in industrial cluster areas to promote the innovation and development of small and medium-sized enterprises.

  (3) Accelerate the implementation of the strategy of strengthening the country through talents and the strategy of intellectual property rights. Establish a mechanism for the flow of innovative talents from scientific research institutions and universities to enterprises, and increase the construction of high-skilled talents. Accelerate the improvement of various forms of incentive mechanisms such as options, technology shares, equity rights and dividend rights, and encourage scientific research institutions and scientific and technological personnel in colleges and universities to actively engage in job inventions. Intensify efforts to attract outstanding talents from all over the world to come to China for innovation and entrepreneurship. Give full play to the supporting and leading role of research universities, strengthen the construction of disciplines related to strategic emerging industries, and increase the categories of urgently needed professional degrees. Reform the talent training mode, formulate policies to encourage enterprises to participate in talent training, establish a new mechanism for joint training of talents by enterprises and schools, and promote the training of innovative, applied, compound and skilled talents. Support the creation and application of intellectual property rights, strengthen the protection and management of intellectual property rights, and encourage enterprises to establish patent alliances. Improve the interest guarantee and realization mechanism of intellectual property transfer and transformation in universities and scientific research institutions, and establish an efficient intellectual property evaluation and trading mechanism. Increase incentives for innovative achievements with significant social benefits.

  (4) Implementing major industrial innovation and development projects. With the goal of accelerating industrial scale development, we will choose the key direction that can lead and lead and achieve breakthroughs, rely on superior enterprises, coordinate technology development, engineering, standard formulation, market application and other links, organize and implement several major industrial innovation and development projects, promote factor integration and technology integration, and strive to achieve major breakthroughs.

  (five) the construction of industrial innovation support system. Give full play to the supporting role of knowledge-intensive service industries, vigorously develop high-tech service industries such as research and development services, information services, entrepreneurial services, technology transactions, intellectual property rights and the transformation of scientific and technological achievements, and strive to cultivate new formats. Actively develop business services such as human resources services, investment and management consulting, and accelerate the development of modern logistics and environmental services.

  (6) Promoting the industrialization of major scientific and technological achievements and the development of industrial agglomeration. Improve the industrialization mechanism of scientific and technological achievements, intensify the implementation of industrialization demonstration projects, actively promote the application of major equipment, establish and improve the release system of innovation achievements and technology transfer institutions of scientific research institutions and universities, promote technology transfer and diffusion, and accelerate the transformation of scientific and technological achievements into real productive forces. Relying on advantageous industrial clusters, we will cultivate a number of strategic emerging industry demonstration bases with strong innovation ability, good entrepreneurial environment, outstanding characteristics and agglomeration development, forming growth poles and radiating regional economic development.

  Five, actively cultivate the market and create a good market environment.

  We should give full play to the basic role of the market, fully mobilize the enthusiasm of enterprises, strengthen infrastructure construction, actively cultivate the market, standardize the market order, and create a fair and good environment for the healthy development of various enterprises.

  (1) Organizing the implementation of major application demonstration projects. Adhere to the application to promote development, focus on the urgent needs of improving people’s health level and alleviating the constraints of environmental resources, select major technologies and products that are in the early stage of industrialization, have significant social benefits, and the market mechanism is difficult to play an effective role, coordinate the existing experimental demonstration projects, organize the implementation of major application demonstration projects such as national health, green development, intelligent manufacturing, material replacement, and information benefiting the people, guide the transformation of consumption patterns, cultivate markets, and promote industrial development.

  (2) Support market expansion and business model innovation. Encourage green consumption, recycling consumption and information consumption, innovate consumption patterns and promote the upgrading of consumption structure. Expand the scope of implementation of energy efficiency labeling for end-use energy products. Strengthen the construction of market supporting infrastructure in the fields of new energy grid connection and energy storage, regional aviation and general aviation, and new energy vehicles. In the fields of Internet of Things, energy conservation and environmental protection services, new energy applications, information services, and promotion of new energy vehicles, support enterprises to vigorously develop new formats such as professional services and value-added services that are conducive to expanding market demand. Actively promote new business models such as contract energy management and recycling of modern waste commodities.

  (3) Improve the standard system and market access system. Accelerate the establishment of industry standards and technical standards systems for important products that are conducive to the development of strategic emerging industries, and optimize the examination and approval management procedures for market access. Further improve the system and mechanism of drug registration management, improve the centralized drug procurement system, and support innovative drugs that are clinically necessary, effective, safe and reasonable in price to enter the medical insurance catalogue first. Improve the access standards for new energy vehicles. Improve the management of genetically modified agricultural products. Improve and strictly implement energy conservation and environmental protection laws and standards.

  VI. Deepen international cooperation and raise the level of international development.

  By deepening international cooperation, we should master key core technologies as soon as possible to enhance China’s independent development capability and core competitiveness. Grasp the new characteristics of economic globalization, carry out international cooperation and exchanges in depth, actively explore new modes of cooperation, and participate in international cooperation at a higher level.

  (1) Vigorously promote international scientific and technological cooperation and exchanges. Give full play to the role of various cooperation mechanisms and promote international scientific and technological cooperation and exchanges at multiple levels, through multiple channels and in multiple ways. Encourage overseas enterprises and scientific research institutions to set up research and development institutions in China, and support qualified foreign-invested enterprises to cooperate with domestic-funded enterprises and research institutions to apply for national scientific research projects. Support Chinese enterprises and R&D institutions to actively carry out global R&D service outsourcing, carry out joint R&D and set up R&D institutions overseas, and apply for patents abroad. Encourage Chinese enterprises and R&D institutions to participate in the formulation of international standards, and encourage foreign-invested enterprises to participate in China’s technology demonstration and application projects to jointly form international standards.

  (2) Effectively improve the quality and level of international investment and financing cooperation. We will improve the guidance catalogue for foreign-invested industries, encourage foreign investors to set up venture capital enterprises, and guide foreign investment in strategic emerging industries. Support qualified enterprises to invest abroad and raise funds by issuing stocks and bonds abroad. Expand the autonomy of enterprises in overseas investment, improve the examination and approval procedures, and further increase foreign exchange support for enterprises’ overseas investment. Actively explore the construction of science and technology and industrial parks overseas. Formulate a country-specific industry-oriented catalogue to provide guidance for enterprises to carry out transnational investment.

  (3) Vigorously support the transnational operation of enterprises. We will improve export credit and insurance policies, actively support key products, technologies and services in strategic emerging industries to explore the international market in combination with foreign aid, and promote the application of independent intellectual property technical standards overseas. Support enterprises to cultivate international brands through overseas registered trademarks and overseas acquisitions. Strengthen international certification cooperation between enterprises and products.

  Seven, increase fiscal and taxation financial policy support, guide and encourage social investment.

  To accelerate the cultivation and development of strategic emerging industries, we must improve the fiscal and taxation policy support system, increase support, and guide and encourage social capital investment.

  (1) Increase financial support. On the basis of integrating the existing policy resources and capital channels, we will set up special funds for the development of strategic emerging industries, establish a stable financial input growth mechanism, increase the central financial input, innovate support methods, and focus on supporting major key technology research and development, major industrial innovation development projects, industrialization of major innovation achievements, major application demonstration projects, and innovation capacity building. Increase government guidance and support, and accelerate the popularization and application of energy-efficient products, environmental labeling products and resource recycling products. Strengthen the performance evaluation of fiscal policy, innovate the financial fund management mechanism, and improve the efficiency of fund use.

  (2) Improve tax incentive policies. On the basis of fully implementing the existing tax policies in promoting scientific and technological investment and transformation of scientific and technological achievements, supporting the development of high-tech industries, combining the direction of tax reform and the characteristics of taxes, and aiming at the characteristics of strategic emerging industries, we will study and improve the tax support policies that encourage innovation and guide investment and consumption.

  (3) Encourage financial institutions to increase credit support. Guide financial institutions to establish a credit management and loan evaluation system that adapts to the characteristics of strategic emerging industries. Actively promote the innovation of financial products such as intellectual property pledge financing and industrial chain financing. Accelerate the establishment of a multi-level guarantee system including financial investment and social capital investment. Actively develop small and medium-sized financial institutions and new financial services. Comprehensive use of financial preferential policies such as risk compensation to promote financial institutions to increase their support for the development of strategic emerging industries.

  (4) Give full play to the financing function of multi-level capital markets. Further improve the GEM market system and support qualified enterprises to go public for financing. Promote the construction of OTC securities trading market to meet the needs of entrepreneurial enterprises at different stages of development. Improve the transfer mechanism between different levels of markets and gradually realize the organic connection between markets at all levels. Vigorously develop the bond market, expand the issuance scale of collective bonds and collective notes for small and medium-sized enterprises, actively explore the development of financial products such as low-credit high-yield bonds and private convertible bonds, steadily promote the development of corporate bonds, corporate bonds, short-term financing bonds and medium-term notes, and broaden the financing channels for corporate debt.

  (5) Vigorously develop venture capital and equity investment funds. Establish and improve the supporting policy system and supervision system to promote the healthy development of venture capital and equity investment industries. Create conditions for insurance companies, social security funds, enterprise annuity management institutions and other institutional investors to participate in venture capital and equity investment funds in emerging industries within the scope of risk control. Give full play to the guiding role of the government’s venture capital in emerging industries, expand the scale of the government’s venture capital in emerging industries, and make full use of the market mechanism to drive social funds to invest in innovative enterprises in the early and middle stages of strategic emerging industries. Encourage private capital to invest in strategic emerging industries.

  Eight, promote institutional innovation, strengthen organizational leadership.

  Accelerating the cultivation and development of strategic emerging industries is an important strategic task for China’s economic and social development in the new period. We must vigorously promote reform and innovation, strengthen organizational leadership and overall coordination, and provide impetus and conditions for the development of strategic emerging industries.

  (1) Deepening reform in key areas. Establish and improve the price formation mechanism and tax adjustment mechanism of innovative drugs, new energy and resource products. We will implement the new energy quota system and the full guaranteed acquisition system for new energy power generation. Accelerate the establishment of an extended producer responsibility system, and establish and improve the trading system for major pollutants and carbon emissions. Establish policies and mechanisms to promote the efficient and orderly integration of the three networks, deepen the reform of the power system, and accelerate the reform of the airspace management system.

  (2) Strengthen macro-planning guidance. Organize the preparation of national strategic emerging industry development plans and related special plans, formulate the guidance catalogue for the development of strategic emerging industries, carry out statistical monitoring and investigation of strategic emerging industries, and strengthen the connection with relevant plans and policies. Strengthen the guidance for the development of strategic emerging industries in various places, optimize the regional layout, give play to comparative advantages, and form a coordinated development pattern of strategic emerging industries with unique characteristics, complementary advantages and reasonable structure. All regions should, according to the overall national deployment and starting from local conditions, highlight development priorities and avoid blind development and redundant construction.

  (3) Strengthen organization and coordination. Establish an inter-ministerial coordination mechanism for the development of strategic emerging industries led by the Development and Reform Commission to form a joint force and make overall plans.

  The relevant departments of the State Council and the people’s governments of all provinces (autonomous regions and municipalities) should, according to the requirements of this decision, pay close attention to formulating implementation plans and specific implementation measures, increase support, accelerate the cultivation of strategic emerging industries into leading industries and pillar industries, and make new contributions to China’s modernization drive.

                             State Council

October 10th, 2010