China State Council Sets Direction for Future Industries, Warns Against Blind Expansion

China's State Council, chaired by Premier Li Qiang, convened on June 5 to study work on advancing new industrialization and future industries. The meeting stressed the need to align with trends in the new technological revolution and industrial transformation, focusing on intelligent, green, and integrated development. It called for coordinated efforts to upgrade traditional industries, expand emerging ones, and strategically position future industries.

Minister of Industry and Information Technology Li Lecheng wrote in People's Daily that a national unified approach is needed to elevate the strategic importance of future industries, enhance inter-departmental coordination, and form policy synergies. He emphasized scientific planning based on national strategic needs, technological maturity, and resource conditions, and urged orderly construction of future industry pilot zones with localized development.

Multiple regions have unveiled roadmaps for new industrialization under the 15th Five-Year Plan (2026-2030). Shanghai's municipal government approved a plan on June 1 to accelerate new industrialization, focusing on emerging pillar industries and forward-looking future sectors. Sichuan province's draft plan lists 6G, ultra-high-speed rail, and embodied AI as key future industries.

Hunan province targets AI, life engineering, quantum technology, and frontier materials as primary tracks, with secondary tracks including next-generation equipment and green energy. The State Council highlighted that future industries are crucial engines for new industrialization. China has integrated future industries into its modernization of the industrial system, with the 15th Five-Year Plan explicitly calling for forward deployment.

Seven ministries jointly issued implementation opinions outlining six major directions: future manufacturing, information, materials, energy, space, and health. Key areas include quantum technology, biomanufacturing, hydrogen energy, brain-computer interfaces, embodied AI, and 6G. As of now, China has 509,000 high-tech enterprises, holding key core technologies in quantum tech, AI, biomanufacturing, and brain-computer interfaces.

Over 17,000 specialized 'little giant' firms have been cultivated, with many emerging as unicorns in embodied AI and controlled nuclear fusion. The State Council called for increased basic research investment, systematic breakthroughs in original and disruptive technologies, and fostering more startups and unicorns in key tracks. The meeting also stressed the need to improve support policies, leverage government investment funds, and establish mechanisms for investment growth and risk sharing.

It warned against blind expansion and urged scientific layout and regulatory governance. Li Lecheng noted that given the long cultivation period and high market risk of future industries, financial support should encourage innovation and tolerate failure, with patient capital directed toward early-stage and hard-tech investments.