Published by ChinaMNC · Dantu

China’s Industrial Strategy: What Foreign Founders Need to Know About Traditional, Emerging and Future Industries

A practical overview for foreign founders of China’s policy direction on upgrading traditional industries, growing emerging industries and planning future industries, based on an official government article.

Why China’s Industrial Policy Direction Matters for Foreign Founders

For foreign founders setting up or running a company in China, understanding where policy attention is focused can help with business planning, location choices and conversations with local partners. An official article published on the Chinese government website summarises recent statements by Xi Jinping, General Secretary of the Communist Party of China Central Committee, on how China intends to develop its industrial system. The article, published in September 2026 and sourced from People’s Daily, describes a three-track approach: upgrading traditional industries, cultivating emerging industries and laying groundwork for future industries.

This summary is not a forecast or a guarantee. It is a practical reading of the policy signals in the source for founders who need to align their China operations with national priorities.

The Three-Track Framework

Traditional industries remain the foundation

At a meeting of the Political Bureau of the CPC Central Committee on 30 July, chaired by Xi, the meeting stressed actively promoting breakthroughs in frontier technologies and the development of future industries, building emerging pillar industries and continuing to upgrade traditional industries.

The article quotes Xi saying that traditional industries have a solid foundation, and that future and emerging industries will have more staying power as a result. It also refers to promoting high-end, intelligent and green industrial development, with steel, shipbuilding and other traditional sectors described as gaining new vitality.

For foreign founders, this suggests that traditional manufacturing and related supply chains are not being abandoned. Companies in sectors such as industrial equipment, materials, logistics and engineering may find opportunities in upgrading existing capacity rather than only in new technology fields.

Emerging industries are being scaled up

The article cites several examples of emerging industry progress: China’s photovoltaic installed capacity has historically surpassed coal power; China’s new energy vehicle production and sales have ranked first in the world for 11 consecutive years; and advances in artificial intelligence large models and humanoid robots are emerging.

It also notes that the “new three” exports continue to lead globally, and that artificial intelligence, robotics and biomedicine are developing vigorously. These are policy-flagged sectors where foreign founders may see demand for components, software, services and cross-border collaboration.

Future industries are being planned in advance

Xi is quoted as saying that cultivating future industries is significant for seizing the high ground in technology and industry, retaining the initiative in development, developing new quality productive forces, building a modern industrial system and improving people’s quality of life.

The article describes Beijing’s Yizhuang area as a “hot land” for emerging and future industries. During a visit in February, Xi urged making full use of the country’s ability to concentrate resources on major tasks and bringing together high-quality elements for breakthroughs.

In March, during the national two sessions, Xi stressed opening new prospects in upgrading traditional industries, cultivating and strengthening emerging industries, and planning future industries ahead of time. The article frames the first year of the 15th Five-Year Plan period as a time of systematic layout and deliberate action.

What the Policy Signals Mean in Practice

Look for regional differentiation

The article gives examples of region-specific guidance: Beijing is encouraged to build a world-class source of scientific and technological innovation; Shanghai is expected to stay at the forefront of artificial intelligence development and governance; and Guangdong is asked to build a modern industrial system with international competitiveness.

Foreign founders choosing where to register or expand in China should note that local priorities differ. A company in AI or robotics may find a different ecosystem in Beijing or Shanghai than in Guangdong, while traditional manufacturing upgrade opportunities may be concentrated in other industrial regions.

Expect a step-by-step approach to AI

The article quotes Xi as saying that places with the right conditions can explore artificial intelligence, but that it should be done step by step. It also says regulation should let the “steed” of AI run fast while remaining stable, and that breakthroughs are needed in basic theory, methods and tools.

For founders in AI-related fields, this suggests that both innovation and regulatory compliance are part of the operating environment. Practical steps include understanding local rules, keeping documentation clear and engaging with local authorities and partners early.

Track the contribution of new growth drivers

The article states that in the first half of this year, new growth drivers represented by high-end manufacturing, the digital economy and modern services contributed more than 40% to economic growth. It also says China has become one of the countries with the fastest-rising innovation capacity.

These figures are presented in the source as policy context, not as a market guarantee. Founders should treat them as indicators of where official attention and public resources may flow.

Note the scale of AI industry targets

The article says the core AI industry scale exceeded 1.2 trillion yuan in 2025, and quotes the phrase that “China Intelligent Manufacturing” has become another bright calling card of Chinese-style modernisation.

For foreign founders in AI, this indicates a large domestic market and a policy environment that is actively supporting the sector, while also emphasising regulation and foundational research.

Practical Considerations for Registering and Operating

• Align your business scope with policy priorities. When preparing registration documents, consider how your activities map to traditional industry upgrading, emerging industries or future industries. This can help in discussions with local authorities and industrial parks.
• Choose a location that matches your sector. The article highlights different regional mandates. Review local development plans before committing to a city or district.
• Plan for compliance in AI and frontier technology. The source stresses both exploration and stability in AI governance. Build compliance into your product and data plans from the start.
• Engage with industrial ecosystems. The article refers to bringing together high-quality elements for breakthroughs. Industrial parks, incubators and local partners can help foreign founders connect with suppliers, talent and policy support.
• Keep expectations realistic. The article describes long-term, systematic efforts. Founders should plan for patient development rather than assuming rapid outcomes.

Bottom Line

The official article presents a consistent message: China’s industrial policy is not a choice between old and new sectors, but an attempt to coordinate traditional, emerging and future industries. For foreign founders, the practical takeaway is to understand which track your business fits, which region supports it, and what compliance and partnership steps are needed. The source does not promise specific incentives or outcomes, so founders should verify details with local authorities and professional advisers.

Foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535 for help registering and operating a company in China.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.