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As China prepares to launch its 15th Five-Year Plan (2026-2030), the country is entering a new phase of development centred on high-quality growth, technological resilience and strategic global engagement. Against a backdrop of economic restructuring and shifting geopolitical dynamics, the plan will shape China's policy direction and business environment over the next five years.
For multinational companies and global investors, the plan provides valuable insight into how China intends to future-proof its economy, deepen reform and strengthen its role in global value chains. Priorities such as technological self-reliance, domestic demand expansion, green development and high-level opening-up will influence regulatory frameworks, investment incentives and sectoral opportunities, making close alignment essential for businesses operating in or entering the China market.
Key highlights of the 15th five-year plan
Several strategic priorities emerge from the plan, shaping China's development agenda for the next five years.
Technology self-reliance and innovation leadership
China positions technological self-reliance as a cornerstone of its modernisation strategy. The plan prioritises breakthroughs in critical areas such as integrated circuits, industrial mother machines, advanced instruments, foundational software, new materials and biomanufacturing. To achieve these goals, China will establish a national laboratory system to optimise resource allocation and reinforce enterprises as primary innovation drivers.
Investment in basic research will increase significantly, with total R&D expenditure targeted to exceed 3.2% of GDP. The government is also promoting international scientific collaboration and strengthening cross-border mechanisms for intellectual property protection and technology transfer, signalling openness to global partnerships in innovation even as it pursues greater self-sufficiency.
Modern industrial system and digital economy
The plan accelerates the development of a modern industrial system anchored in advanced manufacturing and digital integration. China is driving high-end, intelligent and green transformation of its manufacturing base while expanding strategic emerging industries such as AI, biotechnology, new energy, aerospace and environmental technologies.
A key focus is deepening the integration of the digital economy with the real economy through initiatives in industrial internet, platform economy and smart society development. This digital-physical convergence represents a significant opportunity for technology providers and industrial automation specialists.
Expanding domestic demand and consumption
Domestic demand remains a strategic pillar for sustainable growth. Rather than relying on short-term stimulus measures, the plan emphasises upgrading consumption structures and fostering long-term consumption capacity. This approach supports new consumption models, including service-oriented, digital and green consumption.
The government is strengthening policies that directly benefit consumers to drive inclusive growth, creating opportunities for businesses aligned with China's evolving consumer preferences and rising middle-class purchasing power.
Green development and carbon goals
China commits to a comprehensive green transition to meet its 2030 carbon peaking target. The plan accelerates green energy, green manufacturing and green finance initiatives while advancing innovation in low-carbon technologies and strengthening ecological protection. Enhanced pollution control measures support the vision of a 'Beautiful China,' creating substantial opportunities in renewable energy, clean technology and environmental services.
Deepening reform and high-level opening-up
Despite global uncertainties, China reaffirms its commitment to openness and win-win cooperation as integral to modernisation. The 15th FYP outlines an ambitious agenda for institutional opening-up and international engagement.
Institutional opening-up and business environment optimisation
China is aligning with high-standard international trade rules and expanding openness in services sectors. Free trade zones and the Hainan Free Trade Port will serve as platforms for regulatory innovation and policy experimentation. Financial reforms include broader cross-border use of the Renminbi and development of an international payment system to enhance financial resilience.
Foreign investment and two-way cooperation
The plan commits to shortening the negative list for market access and implementing pre-establishment national treatment. China is improving investor services, facilitating reinvestment and ensuring secure cross-border data flows. Foreign participation in major technology and green initiatives is actively encouraged, backed by stronger intellectual property protection and fair competition mechanisms.
Innovative trade and digital opening-up
Trade policy is evolving to emphasise quality over volume, with upgraded goods trade focusing on green and intermediate products alongside expanded service trade. Digital trade development is a priority, with support for cross-border e-commerce and enhanced security frameworks that balance openness with protective measures.
The Belt and Road Initiative continues to evolve with strengthened infrastructure connectivity, regulatory harmonisation and people-to-people exchanges. Cooperation is expanding into green development, digital economy and healthcare sectors. China is building a diversified, sustainable investment and financing system to improve Belt and Road outcomes and address previous concerns about debt sustainability.
What this means for foreign investors
China's 15th Five-Year Plan provides greater clarity on policy direction for foreign investors, particularly in sectors such as advanced manufacturing, technology, sustainability, healthcare and financial services. Priority regions including the Greater Bay Area, Hainan Free Trade Port and the Beijing-Tianjin-Hebei cluster are positioned as key centres for policy experimentation and investment facilitation.
While regulatory complexity remains, the emphasis on institutional opening-up, fair competition and a more predictable business environment provides a clearer framework for long-term foreign participation. Companies that align operational and investment strategies with national priorities are likely to be better positioned as the plan is implemented. For full details, the official policy document is available on China's official government portal.
Acclime's China team supports companies operating in or entering the market with structuring, regulatory compliance and operational advisory as policy requirements evolve
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