China To Take More Selective Approach to New Quality Productive Forces

Key Takeaways

• New guidelines steer China’s technology agenda toward commercial results, with a focus on industrial applications and a larger role for private Chinese companies.
• Beijing acknowledges the costs of past industrial policy, including debt-fueled expansion and duplicative investment, and calls for a more selective approach.
• While competitive pressure on US companies will keep intensifying, local government implementation of the guidelines will be bumpy given financial constraints.