China Issues 13th Five Year Plan for Strategic Emerging Industries

On December 19, 2016, the State Council of China issued the National 13 th Five Year Plan for the Development of Strategic Emerging Industries, to direct and support the development of the seven strategic emerging industries, i.e., the energy-saving and environmental protection industry, the new-generation information technology industry, the biology industry, the high-end equipment manufacturing industry, the new energy industry, the new materials industry, and the new-energy automobile industry, during the 13 th Five Year period (2016 2020). The Plan aims to have the industrial added value of strategic emerging industries account for 15 percent of Chinas GDP by 2020. In particular, the Plan aims to have the total output value of the new-generation information technology industry exceed RMB 12 trillion, the output value of the high-end equipment industry and the new materials industry exceed RMB 12 trillion, the output value of the biology industry reach RMB 8 10 trillion, the total output value of the new-energy automobile industry, the new energy industry, and the energy-saving and environmental protection industry exceed RMB 10 trillion, and the output value of the digital creativity industry reach RMB 8 trillion by 2020. To effectuate the implementation, the Plan calls for actively supporting qualified strategic emerging enterprises to obtain financing directly from the capital market, encouraging financial institutions to provide financial support to the strategic emerging industries, establishing a national financing guarantee fund to support the financing guarantee for projects in strategic emerging industries, providing government funds to support projects in the strategic emerging industries, and perfecting tax incentives to encourage investment in ventures.