Strategic emerging industries likely to contribute 8% of China's GDP by 2015

China will make great efforts to maintain the healthy and coordinated development of its strategic emerging industries such as environmentally friendly and energy-efficient products as well as the next generation of information technology industries.

The country plans to increase the share of these industries' total added-value in its GDP to around 8 percent by 2015 and 15 percent by 2020, according to the "State Council's Decision to Accelerate the Development of Strategic Emerging Industries" published on www.gov.cn on Oct. 18.

At present, strategic emerging industries contribute 3 percent of China's GDP, and the 8 percent target means that the output value of these industries must grow nearly three times in the next five years.

China will attach great importance to the development of environmentally-friendly and energy-efficient, next-generation information technology, bio-engineering, high-end equipment manufacturing, alternative energy, alternative material and alternative-energy vehicle industries among others.

The status of the above seven emerging industries will be basically established by 2020. The environmentally-friendly and energy-efficient, next-generation information technology, bio-engineering, and high-end equipment manufacturing industries will become the backbone of China's economy, while the alternative energy, alternative material, and alternative-energy vehicle industries will become the forerunners of the Chinese economy.

The "strategic emerging industry" has been an economic buzzword in China since early 2010, indicating that China is also developing far-reaching strategies for sustained economic development when other countries are all seeking new ways to boost their economic growth.

Qi Jianguo, deputy director of the Quantitative and Technical Economics Institute under the Chinese Academy of Social Sciences and one of the drafters of the "Opinions on Accelerating the Development of New Strategic Industries," said China’s basic intention in supporting the development of new industries is based on the strategic consideration of China's economic development and aimed at making long-term arrangements.

Supporting the development of new strategic industries will not only nurture China's new leading industries but also respond to revelations and the considerable competitive pressures on China brought about by the changes in developed countries' new economic development modes in the post-crisis period.

In terms of specific supporting polices, the decisions show that China will accelerate the establishment of industry standard systems and technological standard systems for major products that are favorable for the development of new industries, and streamline market access review and approval procedures. It includes perfecting the market access standards for new-energy automobile projects and products, improving the management of genetically modified agricultural products and strengthening the execution of energy efficiency and environmental protection standards.

According to the decisions, on top of integrating existing policy resources and capital channels, China will establish special funds for the new strategic industries and set up a mechanism for the steady growth in fiscal input in order to boost the central government's input and find innovative means of support. The funds will mainly be used to support the research and development of major and critical technologies, major industry innovation projects, industrialization of major innovative achievements, major demonstration projects and the development of innovation capacity.

Furthermore, the government will strengthen guidance and support to the development of the industries by intensifying the performance evaluations concerning the implementation of fiscal policies, innovating fiscal fund management and enhancing fund-usage efficiency. The government will also research and improve tax support policies in order to promote innovations and guide investments and consumption.

By People's Daily Online