In China's next five-year plan, which is about to begin, its significance is not only directly related to its own development, but also will have an impact on the direction of the global economy. Moreover, in this plan, deployments made in multiple key areas can clearly point out a clear development direction for companies and investors.
Green transformation and dual carbon goals
Achieving the goal of carbon peak and carbon neutrality will continue to drive fundamental changes in the energy structure. By the end of 2025, the proportion of non-fossil energy consumption in China will reach about 20%, which means that clean energy construction such as wind power and photovoltaics will still maintain rapid growth. From equipment manufacturing to operation and maintenance, there are a lot of opportunities in the related industry chain.
One of the focuses is the innovation of green and low-carbon technologies. The commercialization process of cutting-edge technologies such as hydrogen energy, energy storage, and carbon capture, utilization and storage will be accelerated. The demand for energy-saving transformation in industrial parks in various regions and key high-energy-consuming industries is extremely urgent. This will create a sustained market space for related technical services, environmental protection equipment and consulting industries.
New productivity and technological innovation
The key points of the planning recommendations that attach importance to the development of new productive forces are to promote industrial upgrading through scientific and technological innovation. Frontier fields such as artificial intelligence, quantum information, and integrated circuits have been placed in prominent places. It is expected that R&D investment and policy support at the national and local levels will be further increased, thereby attracting more capital and talent.
Taking scientific and technological innovation as an example, a solid carrier is absolutely indispensable. The main body of national laboratories, the element of large scientific equipment, and the role of innovative enterprises are becoming more and more important day by day. Under the guidance of planning, with Beijing as one of them, Shanghai as one of them, and the Guangdong-Hong Kong-Macao Greater Bay Area as one of them, the agglomeration effect of these international science and technology innovation centers will be strengthened and the ecosystem built around basic research, the ecosystem built around the transformation of results, and the ecosystem built around application scenarios will become more and more perfect.
Construction of modern industrial system
The manufacturing industry is transforming towards high-end and intelligent processes. This is the key point of industrial upgrading. For things such as high-end CNC machine tools, robots, and aerospace equipment, the plan puts forward clear and clear development needs for these things. Traditional factories carry out digital transformation and network transformation operations. This is a very large market, which covers many different links involving industrial software, sensors and system integration.
Various industries such as biomanufacturing, commercial aerospace, and the so-called low-altitude economy belong to the category of such emerging industries. They are designated as engines that will drive growth in the future. However, these fields are currently only at the beginning of industrialization, and technology follows The route followed and the business model adopted are still in the process of exploration. For those companies that dare to be the first to try this behavior, this gives them the possibility to occupy the advantage of leading the initiative, and then go on to create a new set of industry standards for themselves.
Construction of a national unified market
Breaking the self-protection measures and market segmentation between regions and creating a domestic unified large-scale market that is effective, normative and always upholds the principle of fair competition is an inevitable need within the plan. This will greatly reduce the costs of logistics and institutional transactions, and then enable truly competitive products and services to achieve smooth circulation across the country. This is beneficial to those companies that have the ability to conduct business activities across regions.
To build a unified large market, the relevant rules and standards are also unified, including property rights protection, market access, fair supervision and many other aspects. This progress process can optimize the overall operation and business environment, especially create a long-term favorable situation for private enterprises and small, medium and micro enterprises, thereby stimulating the motivation and vitality of the development of market entities.
High-level institutional openness
As China continues to advance the process of continuously reducing the negative list for foreign investment access, China will introduce new measures and techniques in the areas of opening up the service industry and the areas covered by the digital economy. The Pilot Free Trade Zone, together with open platforms such as the Hainan Free Trade Port, will carry out higher-level stress testing operations. In this way, foreign investment will be provided with a more transparent situation and a more stable institutional environment.
The focus of cooperation under the "Belt and Road" initiative will be to advance in-depth towards "small but beautiful" people's livelihood projects, towards green development, and towards the digital field. The ways for Chinese enterprises to participate in the international division of labor will mostly shift from product exports to technology collaboration, from product exports to standards collaboration, and from product exports to supply chain collaboration, which places higher demands on enterprises' global resource integration capabilities.
Regional coordination and urban-rural integration
Major national and regional strategies that can promote the optimized allocation of innovation elements and industries in a larger space, such as the coordinated development of Beijing, Tianjin and Hebei and the integration of the Yangtze River Delta, will continue to be promoted. The urbanization effect formed between the central city and surrounding areas will generate new demand for infrastructure construction and demand for public services.
Another priority is urbanization with counties as an important carrier. The plan emphasizes the need to promote the integration of urban and rural infrastructure and public services. This shows that areas with shortcomings such as county sewage and garbage treatment, cold chain logistics, and medical and health care will usher in a round of investment and construction cycles to remedy shortcomings.
After reading the above analysis, among these development opportunities, which field do you think has the greatest possibility of spawning emerging industries or business models that can change the lives we experience every day? Feel free to share your observations in the comments section.
