Published by ChinaMNC · Changshu
China’s New Push to Integrate Tech and Industry: What Foreign Founders Need to Know
A government opinion outlines policies to deepen the integration of technological and industrial innovation. For foreign founders, this signals expanded opportunities in high-tech sectors, but company registration and operations remain governed by existing frameworks.
Practical Takeaways for Foreign Founders
China’s Central Committee and State Council have issued an opinion on integrating technological and industrial innovation. While the document focuses on innovation policy, it has implications for foreign founders choosing where to register and operate. Below is a summary of the key points relevant to setting up and running a company in China.
1. Strategic Direction: Enterprise-Led Innovation
The opinion emphasizes building an innovation system where enterprises play a leading role, with collaboration among industry, universities, and research institutes. For foreign founders, this means China is encouraging companies to participate in national science and technology programs and to take the lead in converting research into products.
2. Sector Focus: Where Opportunities May Lie
The document identifies several priority areas. These include:
- Key core technologies: integrated circuits, industrial machine tools, high-end instruments, advanced materials, and biomanufacturing.
- Emerging and future industries: new energy, new materials, aerospace, low-altitude economy, quantum technology, hydrogen and nuclear fusion, brain-computer interfaces, embodied intelligence, and 6G.
- Traditional industry upgrade: manufacturing transformation, industrial internet, and the “AI+” initiative.
Foreign founders in these fields may find more opportunities for collaboration and access to government-supported platforms.
3. Enterprise Participation in National Programs
The opinion calls for increasing the number of experts from enterprises and venture capital in national science and technology project reviews. It also supports enterprises leading projects, with mechanisms like “open competition” and milestone-based funding. Foreign-invested enterprises that qualify may be able to participate in these programs.
4. Support for Technology Companies
Policies aim to strengthen the innovation capabilities of enterprises. Measures include:
- Opening the National Natural Science Foundation to private enterprises on a pilot basis.
- Encouraging state-owned enterprises to establish R&D reserve funds.
- Increasing the R&D expense super-deduction ratio for small and medium-sized tech enterprises.
- Supporting enterprises in building science and technology innovation platforms.
- Opening national major science infrastructure and large research instruments to enterprises.
Foreign founders should note that these benefits are typically available to enterprises registered in China, including foreign-invested ones, subject to eligibility criteria.
5. Technology Transfer and Commercialization
The opinion promotes mechanisms for transferring科研成果 to industry. It encourages universities and research institutes to set up technology transfer offices and to license results to small and medium-sized enterprises, sometimes with deferred payment. A national integrated technology market is to be developed. For foreign founders, this could ease access to technology and collaboration with Chinese research institutions.
6. Talent and Education
Reforms in talent cultivation are proposed, including joint training by universities and enterprises, and policies allowing researchers to take leave to start businesses. Foreign founders may benefit from a more flexible talent pool, but hiring foreign talent still requires compliance with visa and work permit regulations.
7. Financial Support
The document envisions a science and technology finance system covering the full life cycle of tech companies. It mentions government-guided venture capital funds focusing on early-stage, small, long-term, and hard-tech investments. It also promotes “innovation points” for quantitative evaluation of tech SMEs and a “tech board” in the bond market. Foreign founders should explore these financing channels, but note that foreign investment access is subject to the negative list.
8. Market Environment and Regulation
The opinion calls for removing unreasonable barriers to innovative products, piloting relaxed market access in new business forms, and exploring “sandbox regulation.” It also emphasizes intellectual property protection and standards development. For foreign founders, this indicates a potentially more predictable regulatory environment, but compliance with existing laws remains essential.
9. Local Pilot Programs
Local governments are encouraged to pilot deep integration of tech and industry, with national high-tech zones and innovation demonstration zones taking the lead. Foreign founders might consider locating in these zones to benefit from pilot policies.
What This Means for Company Registration
This opinion does not change the fundamental procedures for foreign founders to register a company in China. The process still involves choosing an entity type (e.g., wholly foreign-owned enterprise, joint venture, or representative office), securing a registered address, obtaining approvals where required, and completing tax and customs registration. However, the policy direction may influence where to set up and what incentives to seek. For example, tech-focused foreign enterprises may find more support in high-tech zones and for R&D activities.
Foreign founders should consult local authorities and professional advisors to understand available incentives and compliance requirements.
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.