• China’s central government has identified seven “strategic emerging industries” (SEIs) that officials hope will become the backbone of China’s next phase of industrial modernization and technological development.
• Many of these policies are still being drafted or are in the early stages of implementation. Foreign companies have increasingly sought to understand how these policies may affect them and what market opportunities may exist within these sectors.
• Senior leaders have noted on several occasions that foreign-invested enterprises should enjoy equal treatment in regards to all SEI policies. However, past experience with central government industrial plans that have placed limits on foreign companies’ opportunities to participate in key markets has led companies to be cautious about current opportunities.
• While central and local governments will both play important roles in developing SEI policies, provincial and municipal governments will be the primary drivers of SEI implementation nationwide and have significant authority to draft plans, funding schemes, preferred technology catalogues, and pilot projects.