Emerging Industries (Bi-Monthly Newsletter, Issue 16)

Date: Mar 2017
Chinese State Council publishes guidelines on strategic emerging industries during the 13th Five-Year Plan period (2016-20)
On 19 December 2016, the State Council unveiled guidelines on China’s strategic emerging industries (click here to view the full text in Chinese, Guidelines). As outlined in the Guidelines, the added value from the strategic emerging industries shall contribute to 15% of China’s GDP by 2020, with the new information technology, high-end manufacturing, biology, low-carbon and green, as well as digital and creative industries each delivering about RMB10tn added value. The Guidelines also called for cross-industry convergence in a broader scale to create an average of over 1 million jobs each year.
The Guidelines set the following tasks to be achieved during the 13th Five-year Plan period:
Rapid growth in the information technology industry to drive China’s cyber-economy.
Significant developments in the high-end equipment manufacturing and new material industries to set the pace for China’s manufacturing sector.
Game-changing innovations in the bio-industry to drive the growth of a bio-economy.
Robust growth in the new energy vehicles, new energy, and energy-saving & environmental protection industries to set a role model for a sustainable development pattern.
A boom in the digital and creative industries to lead leading a new consumption mode in China.
Growth in strategic emerging industries with full-dimensional strength.
Economies of agglomeration to be promoted among strategic emerging industries.
Attraction of foreign capitals to grow strategic emerging industries
High-end equipment sector to build a new image for China’s manufacturing sector
High-end equipment manufacturing sector is an important reflection of a country’s manufacturing capabilities. In recent years, many developed countries proposed “re-industrialization” strategies to rejuvenate the manufacturing sector. Under this context, a new round of battles is about to open while high-end manufacturing sector has become the main arena. A number of developed countries have established strategic plans (including the Advanced Manufacturing National Program of the U.S. and Industry 4.0 program of Germany) centering about high-end manufacturing sector, in an attempt to entrench or even extend their dominance in this sector.
China still lags behind developed countries in terms of high-end manufacturing capabilities, due to its weak innovative capabilities, lack of proprietary technologies, insufficient capabilities in manufacturing needed key parts and components, poor reliability of its product quality, as well as weakness in brand building and service systems.
These weaknesses have been addressed in the Guidelines. As set forth in the Guidelines, China’s high-end equipment manufacturers shall quicken their efforts to develop key parts and components incorporating China’s self-developed technologies, promote the engineering and industrial application of high-end equipments and systems, and build a better image for China’s manufacturing sector; the added value from the high-end equipment manufacturing sector shall hit RMB12tn by 2020.
New momentum with a new start: 2017 Belt and Road Policies and International Capacity Cooperation Promotion Conference
Beijing Municipal Commission of Economy and Information Technology plans to organize the 2017 Belt and Road Policies and International Capacity Cooperation Promotion Conference on 24 March 2017. This Conference provides a chance for Beijing enterprises and firms to have a better understanding of the investment, land, tax, financial and trade policies in countries along the Belt and Road and also countries included in China’s international production capacity cooperation scheme, as well as the policies of Beijing’s Fengtai Technology Park to incentivize the industrial and information technology enterprises in the Park. This will help enterprises develop appropriate outbound investment strategies leveraging the financial support and innovation encouraging policies of the state and Beijing Municipality ( Persons or organizations interested in co-hosting or sponsoring this Conference may click here to get more information in Chinese).
Ministry of Transport plans to apply the BeiDou Navigation System to civil fields
On 29 November 2016, the Chinese Ministry of Transport unveiled the Guidelines to Apply the BeiDou Navigation System in the Transportation Sector (Guidelines). As set forth in the Guidelines, the BeiDou System shall be broadly applied to China’s transportation sectorby 2020, with enhanced positioning, navigation and support capabilities, and be used in other countries with a comprehensive navigation communications service system in place.
The transportation sector is the biggest civil user of the BeiDou System, and the demand from this sector is huge. As outlined in the Guidelines, the BeiDou system will be used in transportation monitoring and service, highway monitoring, transportation infrastructure construction, traffic safety monitoring, safety emergency and logistics areas. This system will be further used to monitor real-time status of traffic lanes, and an enhanced system and high accuracy service system will also be developed to cater for specific needs in the transportation sectors.
Chinese scientists find a new method to extract gas from flammable ice
At an interview with Xinhua News Agency on 19 January 2017, Vice President Sun Youhong of China’s Jilin University said that after more than 10 years of study, a research team of the University has developed a new technology extracting natural gas by burning flammable ice (or gas hydrate) founded in permafrost in China’s Qilan Mountains). This new technology is proved more practicable as its major technical specifications outperformed the competing technologies developed by other countries. According to Sun, as vast quantities of gas hydrate are generally available in ocean sediments, next step the research team will study how to acquire it from the South China Sea , so that this technology can be broadly commercialized.
Gas hydrate, also called flammable ice, will generate a very small amount of carbon dioxide and water when burned. While this energy source has a relatively small environmental footprint compared with other energy sources (say coal, fossil oil and natural gas), it produces 10 times the amount of energy that can be produced from coal, oil and gas. China has identified vast reserves of gas hydrate, and it is estimated that the total organic carbon contained in gas hydrate doubles that from the world’s known coal, oil and natural gas reserves in total, and it is thus internationally recognized as the alternative energy source in replace of oil or gas.
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