China lays out plans to develop strategic industries

China has announced new development plans for strategic industries, including electric vehicles (EVs), new energy resources and technology infrastructure, in response to the impact of the Covid-19 economic downturn and trade tensions with the US.

The guidance identifies key sectors in what the government calls "strategic emerging industries", giving an indication of China's priorities as it seeks to reduce its dependence on technology imports and develop its economy.

"Unprecedented challenges to China's economic and social developments, resulting from the Covid-19 impact on global industrial and supply chains and rising protectionism and unilateralism in the global markets, have prompted us to formulate the guidance," said top economic planning agency the NDRC, one of four government ministries that put together the plan.

The mention of protectionism is a clear reference to restrictions imposed by the US on Chinese technology companies as part of the two countries' trade war, which have hit production and sales at several firms including technology giant Huawei.

China will build 10 strategic emerging industrial bases that will have "global influence", 100 clusters with international competitiveness and 1,000 ecosystems with unique advantages to help companies develop these emerging industries, the plan says.

The government wants more EVs to be used in urban public transportation and other sectors. It will speed the development of infrastructure and intelligent facilities such as charging and battery exchange stations for new energy vehicles (NEVs), big data centres for driverless cars, and models that integrate roads, buildings and communal facilities in urban areas.

The new guidance also makes clear China's ambitions to achieve technological breakthroughs in key chipsets and other basic materials, accelerate infrastructure construction for its 5G network and spur the development of emerging technologies in the industrial internet field, which uses a vast amount of intelligent machines.

Sectors such as high-end equipment manufacturing, new materials, and new energy resources such as nuclear and advanced coal-fired power generation, are also included in the guidance.