Strategic Industries in China

And how they can help your business?

Let’s finish this series with a question that won’t apply to everyone. But if it does apply to you — it’s a big one.

What does China want?

Because if your business matches China’s priorities —you’ll go further, faster, and grow more profitably.

Let’s look at what industries the Chinese government supports, how that support actually works, and what foreign founders like you can realistically access.

China’s strategic priorities in 2025

Let’s skip the slogans.

Here are the three main goals driving China’s economic policy right now:

✅ Self-reliance in key tech

✅ Green and low-carbon transition

✅ High-end manufacturing

These priorities come from the 14th Five-Year Plan.

They’re not just words — they’re backed by money, land, policies, and human resources.

Which industries get the most support?

Here’s the list:

1. Semiconductors and integrated circuits (芯片、集成电路)

2. AI and machine learning (人工智能)

3. Electric vehicles and batteries (新能源汽车、电池)

4. Renewable energy — solar, wind, and storage (光伏、风能、储能技术)

5. Biotech and pharmaceuticals (生物医药)

6. Medical devices and diagnostics (医疗器械)

7. Advanced manufacturing and robotics (智能制造、工业机器人)

8. Aerospace and satellites (航空航天、卫星技术)

9. Quantum computing (量子计算)

10. New materials (新材料技术)

11. Green and low-carbon technologies (绿色低碳技术)

12. Industrial and B2B software (工业软件、企业级软件)

13. Smart logistics and supply chain platforms (智慧物流)

14. High-end CNC and automation (高端数控机床与自动化)

15. High-speed rail and infrastructure (高速铁路、基础设施)

16. Agricultural tech and seed engineering (农业科技、种子工程)

A new plan is coming in 2026 — but these sectors are very likely here to stay.

If you’re building in one of these areas —and you’re thinking about operating in China —then yes, there’s a good chance you can get real support from the government.

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What does this support actually look like?

✅ Funding programs

In many sectors, the government directly or indirectly matches your investment.For example:You invest $1 million — they match it with another $1 million.

In other cases: You export $10 million worth of products — and get for example $1 million in subsidies on top of your VAT refund.

✅ Tax incentives

Normally, companies in China pay 25% corporate tax. In high-tech zones — it drops to 15%, or even lower. Some districts offer 0% tax for a few years — with gradual increases later.

✅ Subsidized land and space

China has hundreds of industrial parks, high-tech zones, and special trade areas. They often provide free office space or cheap long-term leases.

They’re actively competing to attract companies like yours. You can get free offices, or very cheap land leases.

✅ Fast-track approvals

Licenses, visas, tax refunds, bank accounts — remember all those pain points we discussed earlier? They move faster and easier inside special zones.

✅ Connections — Guanxi

China runs on guanxi — trusted relationships.

Support comes from people — not systems. Officials help companies they trust. They introduce you to partners, recommend service providers, and unblock issues silently.

Foreigners can benefit too — but only if someone local vouches for you.

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How to qualify for this support?

✅ 1. Check your alignment with someone local

Are you building something in a strategic sector? Are you adding real value in China — R&D, design, or production?

This is a serious question. Benefits are for companies that contribute to China’s economy. Not paper entities. And not pure import-export or consulting firms.

There are rare exceptions — like large-scale high-tech trade. But even those require a strong track record.

So: if you don’t align — don’t chase the subsidies.

✅ 2. Pick the right location

You see, there are a lot of special zones in China. And if you align with China’s strategy, they compete to attract founders like you.

But here’s the truth: How far you go depends on who speaks for you.

Don’t send your accountant. Don’t go alone. Officials don’t take lone foreigners seriously. You need a strong Chinese partner with real government connections.

Someone like our own GR Director Chen Wei —Who’s been building relationships with officials for over 20 years. When he walks in — people listen.

Also remember: in Chinese culture, people don’t always say things directly. But they will — through someone they trust. So it is a strong move to find a strong intermediary.

✅ 3. Have a talk

Like many other things in China, incentives aren’t public. There’s no online database or comparison chart.

You talk. You get to know people. You say what you’re building — what value you bring.They tell you what they can offer. You negotiate.

They want you to succeed. Because your numbers help their region look good — and get promoted. It’s a win-win.

✅ 4. Make the deal

Sometimes it’s formal — a signed agreement with a local bureau. Sometimes it’s a JV with a state-owned partner. Sometimes it’s a handshake — followed by free space and priority treatment.

It all happens in Chinese. With many behind-the-scenes conversations.

So once again: Having a respected Chinese intermediary changes everything. They trust them. You trust them. That’s how things move.

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Final thoughts

If you’re building in semiconductors, AI, energy, biotech, or industrial automation —you’re in the right place, at the right time.

China is investing in these sectors — long-term and strategically.

If you’re ready to invest here too — not just with money,but with knowledge, technology, and local value —you’ll find real support.

This is the last part of our China Setup series.

If you’ve followed the full journey — thank you.

We hope you feel more confident, better informed, and prepared for your next steps.

In the next series, we’ll explore Hong Kong and Singapore —

how to use them for global business, banking, and compliance, especially if you’re from a high-risk country.

Subscribe to the blog or follow us on LinkedIn to get notified.

And if you want to explore your options in China — feel free to reach out.

We’ll help you figure out if it’s the right move — and if so, how to do it right.

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