China Boosts Future Industries, Aims to Cultivate More Unicorn Companies
China is significantly ramping up policy support for future industries, with Premier Li Qiang presiding over a State Council executive meeting on June 5 that outlined concrete measures to cultivate more startup and unicorn companies in key technology sectors. The initiative, reported by Xinhua News, signals Beijing’s determination to secure leadership in next-generation technologies as the country embarks on its “15th Five-Year Plan” period.
Policy Framework and Directives
The State Council meeting called for a multi-pronged approach to future industry development, emphasizing close cooperation across industry chains, the strategic use of government investment funds, and the establishment of risk-sharing mechanisms. According to the State Council Information Office, the meeting also stressed the need to strengthen foundational technology through increased basic research investment and systematically deploy original and disruptive technology breakthroughs.
Minister of Industry and Information Technology Li Lecheng, writing in People’s Daily, urged policymakers to “adhere to a national unified approach, elevate the strategic positioning of future industries, strengthen departmental coordination, and form policy synergy.” He also called for exploring funding methods that “encourage innovation and tolerate failure,” acknowledging the long cultivation periods and high market risks associated with future industries.
Key Sectors Identified
The meeting identified several priority sectors for development, including quantum technology, biomanufacturing, controlled nuclear fusion, brain-computer interfaces, embodied intelligence, 6G communications, and atomic-level manufacturing. These sectors align with the six core future industries outlined in China’s “15th Five-Year Plan” and implementation opinions issued by MIIT and six other departments in December 2025.
According to Yicai/First Financial, multiple regions have already begun formulating their own future industry roadmaps. Shanghai approved its “15th Five-Year” new-type industrialization plan on June 1, while Sichuan has identified 6G, ultra-high-speed rail transit, and embodied intelligence as priority sectors. Hunan is focusing on artificial intelligence, life engineering, quantum technology, and frontier materials.
Market Scale and Economic Impact
The economic stakes are substantial. According to the China Industrial Internet Research Institute, future industries had an estimated output value of approximately 11.7 trillion yuan in 2024, projected to reach 15.5 trillion yuan in 2026 — representing a compound annual growth rate of 15%. The global nuclear fusion market alone is projected to reach $500 billion by 2030, according to industry forecasts cited by Li Yiming, Deputy Director of the Future Industry Research Center at CCID.
China has already built a substantial foundation. The country now hosts 509,000 high-tech enterprises with core technologies in quantum technology, AI, biomanufacturing, and brain-computer interfaces. Over 17,000 specialized “Little Giant” enterprises have been cultivated, and a cohort of unicorn companies has emerged in AI, embodied intelligence, biotechnology, and controlled nuclear fusion.
Investment Mechanisms and Patient Capital
A cornerstone of the strategy is the National Venture Capital Guidance Fund, launched in December 2025 with a trillion-yuan scale and a 20-year duration — embodying the concept of “patient capital.” Three regional funds covering the Beijing-Tianjin-Hebei region, the Yangtze River Delta, and the Guangdong-Hong Kong-Macao Greater Bay Area are now operational, focusing on “investing early, investing small, and investing in hard tech.”
Li Yiming noted that the unique attributes of future industries demand investment growth mechanisms that “transcend traditional models, building a more systematic, agile, and risk-sharing investment growth mechanism.” Government guidance funds and risk compensation mechanisms are designed to bridge early-stage funding gaps, while financial institutions are expected to provide complementary support.
Expert Perspectives
Zhu Keli, Founding Dean of the Guoyan New Economy Research Institute, emphasized that future industries are not about isolated sector development. “Future industries take core technology as the origin, connecting basic materials, core components, high-end equipment, scenario services, and other links,” he said. “This both drives upstream basic industrial upgrading and expands downstream application space.”
Xin Yongfei, Director of the Policy and Economics Research Institute at CAICT, described the State Council’s deployment as a move that will “further strengthen development confidence and clarify the direction of effort” as China targets the goal of basically realizing new-type industrialization by 2035.
Milestone Achievements
MIIT has reported several milestone achievements across future industry sectors. Brain-computer interface applications are expanding from medical to education and industrial sectors, while single-atom catalytic materials and atomic-level manufacturing equipment have exceeded 10 billion yuan in annual sales. The Chinese Government website noted that China’s first compact fusion energy experimental device (BEST) has entered the assembly phase, marking progress toward commercial fusion energy.
Challenges and Forward Outlook
Despite the ambitious targets, the State Council explicitly warned against “rushing headlong into action” and “blindly following trends,” acknowledging the risk of inefficient resource allocation. The long incubation periods required for future industries — with the National Venture Capital Guidance Fund structured for 20 years — may test investor patience.
Looking ahead, analysts expect multiple future industry tracks to achieve the critical transition from laboratory to industrialization. As Li Yiming observed, “scenario-driven approaches will accelerate the transformation from technology to industry.” The coming years will reveal whether China’s blend of centralized planning, patient capital, and market-driven innovation can successfully position the country at the forefront of the next technological revolution.