Innovation to give edge in frontier sectors

China's resolve to promote innovation-driven development to accelerate the cultivation of new growth drivers is expected to help the country gain an edge in strategic emerging fields and tech frontiers, and boost the nation's long-term competitiveness globally amid external uncertainties, said experts, economists and company executives.

Highlighting the pivotal role of sci-tech innovation in driving industrial upgrades and nurturing new quality productive forces, they said future policies will attach greater importance to strengthening fundamental research, achieving breakthroughs in core technologies in key fields and promoting industrial application of innovative achievements.

Their comments came as the Central Economic Work Conference, which concluded on Thursday, stressed the need to enhance innovation-driven development to cultivate fresh growth drivers. Major international technological innovation centers will be established in Beijing, Shanghai and the Guangdong-Hong Kong-Macao Greater Bay Area.

The country will work to improve systems of intellectual property protection in emerging areas, and launch the new round of a campaign to bolster the high-quality development of the industrial chain in key sectors, according to the conference. Efforts will also be made to advance the "AI Plus" initiative and improve artificial intelligence governance.

The innovation-driven development strategy is the core engine for the construction of a modern economic system, while a series of policy measures outlined at the tone-setting meeting will bolster the deeper integration of technological innovation and industrial innovation and inject strong momentum into high-quality economic growth, said Li Yiming, deputy head of future industry research at the China Center for information industry Development.

Li said the conference places an emphasis on "reinforcing the dominant position of enterprises in innovation", which is conducive to strengthening original innovation capacities and speeding up the commercialization of technological achievements, as well as enhancing the overall efficiency of the national innovation system.

Zhu Keli, founding director of the China institute of new Economy, said China has sent a clear signal that it gives more priority to the adoption of technologies in a wide range of sectors through concrete policy tools in 2026 to facilitate a shift from old growth drivers to new ones.

Zhu cited the low-altitude economy as an example, saying that more focus will be put on the commercial applications of drones in logistics, urban transportation and tourism next year. "Moreover, the deep integration of AI and manufacturing not only improves productivity, but also gives rise to new models such as smart factories and flexible manufacturing," Zhu said.

"Technological innovation is becoming a key driving force in boosting productivity, improving supply capacity and unlocking economic growth potential," said Wang Qing, chief macroeconomic analyst at Golden Credit Rating international.

Wang said fiscal and financial resources will be further concentrated on technological innovation and the transformation and upgrading of the manufacturing sector.

"Fiscal spending on science and technology, medium and long-term loans for manufacturing, and the issuance of sci-tech innovation bonds will maintain rapid growth next year, and these will also be major areas of focus for expanding effective investment," Wang added.

The country's strength in sci-tech innovation has taken a major leap in recent years. China has risen to the 10th position in the global innovation ranking for 2025, up one spot from the previous year, marking its first entry into the top 10, according to the World intellectual Property Organization.

Zhang Jun, chief economist at China Galaxy Securities, said it is vital to accelerate the building of a modern industrial system and the cultivation of new growth drivers during the 15th Five-year Plan (2026-30) period.

Zhang also called for efforts to develop strategic emerging industries such as new energy, new materials, aerospace and the low-altitude economy.

Zhou Hongyi, founder of Chinese tech enterprise 360 Security Group, said the just-concluded high-profile conference has boosted the company's confidence, highlighting that the development of new quality productive forces hinges on technological innovation.

Zhou noted that the conference's emphasis on advancing the "AI Plus" initiative signifies that AI shouldn't be confined to research labs, and it must be applied in industrial scenarios. "Currently, AI is moving from a phase of technological breakthroughs to a critical stage of deployment," he said, adding security risks appear when people embrace the opportunities brought by AI.