China Issues Opinion on Developing New Quality Productive Forces: Improve the Punitive Damages System & Launch AI Early Warning and Emergency Response Systems

The Communist Party of China Central Committee and the State Council have issued the Opinions on Developing New Quality Productive Forces (关于发展新质生产力的意见) on October 9, 2026. The opinion describes developing new quality productive forces as an inherent requirement of high-quality development, the government’s stated objective for economic development, and as a focus for achieving it. According to an official of the National Development and Reform Commission (NDRC), the opinion converts statements Xi Jinping has made on the concept since July 2023 into 19 development and reform tasks. It is intended to guide economic and social development during the 15th Five-Year Plan period, of which 2026 is the first year.

Several provisions concern intellectual property and the transfer of research results. Item (5) encourages universities and research institutes to license scientific and technological achievements to small, medium-sized and micro enterprises on a “use first, pay later” basis. It also calls for concept-verification and pilot-testing platforms, as well as project evaluation that assesses application results at acceptance. Item (14) calls for reform of the allocation of rights in job-related scientific and technological achievements and of the separate management of those achievements as assets. It also calls for a technology market that converts research results into applications efficiently. Item (15) calls for an efficient, integrated intellectual property management system and for improvement of the punitive damages system. Item (9) calls for systems governing determination of data property rights, market transactions, distribution of rights and interests, and protection of interests. On research evaluation, item (19) calls for appropriately decoupling researcher assessment and incentives from project applications, paper publication and awards. In the NDRC interview, the official cited Xi Jinping’s statement that innovation is not complete once papers are published or patents are obtained, and that innovation results must be converted into industrial activity.

AI appears in several provisions. Item (10) directs full implementation of the “AI+” action, calling for:

• using AI to transform traditional industries,
• deploying intelligent terminals such as intelligent connected new-energy vehicles, AI phones and computers, and humanoid robots,
• breakthroughs in basic theory and core technologies,
• supply of computing power, algorithms and data, and
• national AI industry application pilot bases and high-value application scenarios organized by region and sector.

The same item calls for systems for technology monitoring, risk warning and emergency response so that AI is secure, reliable and controllable. Elsewhere, item (5) calls for AI to drive changes in research methods. Item (15) calls for strengthened governance in AI and biotechnology. Item (9) addresses data and computing infrastructure, including the “East Data, West Computing” project, a national integrated computing power network and a national blockchain network.

A translation follows. The original text is available here. 

Opinions of the CPC Central Committee and the State Council on Developing New Productive Forces

Developing new types of productive forces is an inherent requirement and an important focus for promoting high-quality development. To accelerate the development of new types of productive forces, the following opinions are hereby proposed.

I. General Requirements

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the spirit of the 20th CPC National Congress and its subsequent plenary sessions, earnestly implement the arrangements of the Fourth Plenary Session of the 19th CPC Central Committee, fully and accurately implement the new development philosophy, adhere to innovation-driven development, reform as the key, adapting to local conditions, and establishing before dismantling, and uphold high technology, high efficiency, and high quality. We will coordinate the relationships between government and market, quality and industry, reform and development, and autonomy and openness, and balance development and security. With scientific and technological innovation as the leading force and a significant increase in total factor productivity as the core indicator, we will promote revolutionary technological breakthroughs, innovative allocation of production factors, and deep transformation and upgrading of industries. We will promote the optimal combination and renewal of laborers, means of labor, and objects of labor, and comprehensively advance scientific and technological innovation, industrial innovation, development mode innovation, institutional and mechanism innovation, and talent work mechanism innovation. We will accelerate the formation of production relations that are more adapted to new quality productive forces, create a favorable development ecosystem for the deep integration of scientific and technological innovation and industrial innovation, and better support high-quality development.

II. Vigorously promote scientific and technological innovation

(I) Strengthen Original and Disruptive Technological Innovation. Adhere to the principles of focusing on the forefront of global science and technology, the main battlefield of economic development, major national needs, and the health of the people, and organize major science and technology projects with a focus on strategic, landmark, and leading products. Uphold both goal-oriented and free exploration principles, address weaknesses in technological and engineering sciences through organized basic and applied basic research, and support innovative development through free exploration-based basic research. Coordinate the construction of science and technology innovation platforms and bases, systematically plan and construct major science and technology infrastructure, strengthen openness and sharing, and avoid duplication and fragmentation. Implement breakthrough plans for basic and interdisciplinary disciplines. Strengthen original theoretical research and innovation in key common technologies, cutting-edge leading technologies, modern engineering technologies, and disruptive technologies.

(II) Accelerate breakthroughs in key core technologies. Leverage the advantages of the new national system, organize and implement high-quality development actions and industrial innovation projects for key manufacturing industrial chains in key areas, and strengthen the entire chain of research, development, support, and ecosystem construction. Implement policies for the first application of first-of-its-kind equipment and promote technological iteration and upgrading.

(III) Coordinate the development of national strategic scientific and technological forces. Give full play to the role of national laboratories in organizing major national science and technology projects and building major national innovation platforms, and take the lead in institutional and mechanism reforms. Optimize the positioning and layout of national research institutions, high-level research universities, and leading technology enterprises, guided by national strategic needs. Gradually establish a salary system for universities and research institutes that stimulates innovation, is knowledge-value-oriented, has standardized and effective management, and balances guarantees and incentives, while simultaneously promoting reforms of national research institutions and high-level research universities to motivate research institutions and researchers. Allow research-oriented public institutions to implement more flexible management systems. Give full play to the key role of leading technology enterprises in promoting the deep integration of the innovation chain, industrial chain, capital chain, and talent chain.

(IV) Strengthening the Leading Role of Enterprises in Technological Innovation. Enhance the supply of inclusive incentive policies, establish an enterprise R&D reserve fund system, and strengthen the leading role of enterprises in technological investment. Encourage technology-based SMEs to increase R&D investment and raise the deduction ratio for enterprise R&D expenses. Upgrade enterprise R&D projects that meet national strategic needs to national projects according to procedures, encourage enterprises to lead national science and technology tasks, and support capable private enterprises to lead major national technological breakthroughs. Establish a user-assessment and evaluation mechanism for achievements, and strengthen the leading role of enterprises in the transformation of research results. Improve the institutional arrangements for state-owned enterprises to promote original innovation. Support the development of specialized, refined, and innovative SMEs.

(V) Accelerate the transformation of scientific and technological achievements into real productive forces. Leverage the advantages of a super-large-scale market to promote efficient integration of technology and market, and facilitate the large-scale development of new productive forces. Implement large-scale application demonstration actions for new technologies, new products, and new scenarios. Establish and deploy concept verification and pilot-scale testing platforms, and increase the construction and openness of application scenarios. Explore the establishment of a full-process evaluation mechanism for science and technology projects, deploying R&D and transformation tasks in an integrated manner during project initiation, and assessing application performance during acceptance, thus addressing the disconnect between technology development and achievement transformation. Guide universities and research institutions to license scientific and technological achievements to small and medium-sized enterprises (SMEs) on a “use first, pay later” basis. Promote large enterprises to open their supply chains to SMEs, supporting SMEs to become an important force in the industrialization of achievements. Use artificial intelligence to lead the paradigm shift in scientific research and help improve research efficiency.

III. Promoting the deep integration of technological innovation and industrial innovation

(VI) Transforming and Upgrading Traditional Industries. Safeguard the foundation of the real economy and consolidate and expand the hard power of “Made in China.” Use national standards to guide the optimization and upgrading of traditional industries, and support enterprises in using digital and intelligent technologies and green technologies to transform and upgrade traditional industries. Organize and implement key industry quality improvement and upgrading actions, consolidating and enhancing the position and competitiveness of industries such as mining, metallurgy, chemicals, light industry, textiles, machinery, shipbuilding, and construction in the global industrial division of labor. Carry out industrial foundation reconstruction projects, major technical equipment tackling projects, major technological transformation and upgrading projects in the manufacturing industry, and large-scale equipment renewal projects. Strengthen financial support for technological transformation of manufacturing enterprises, implement relevant tax incentives for technological transformation investment, promote the digital transformation of manufacturing, and develop intelligent manufacturing, green manufacturing, and service-oriented manufacturing. Enhance basic quality and technical capabilities and strengthen brand building. Deepen the implementation of the new round of actions to increase grain production capacity by 100 billion jin, the seed industry revitalization action, the smart agriculture action, the high-quality development action of agricultural machinery and equipment, the modernization and upgrading action of facility agriculture, and the agricultural science and technology innovation conditions construction project, and develop new forms such as agricultural factories. We will implement an action plan to expand and improve the service industry, promote the extension of productive service industries towards specialization and the high end of the value chain in different sectors, and promote the high-quality, diversified, and convenient development of consumer service industries.

(VII) Cultivating and Strengthening Emerging Industries. Focus on building emerging pillar industries. Accelerate the development of strategic emerging industries such as next-generation information technology, new energy, new materials, intelligent connected new energy vehicles, robotics, biomedicine, high-end equipment, and aerospace. Develop strategic emerging industry clusters with distinct characteristics and complementary advantages, tailored to local conditions, promoting resource aggregation, concentration of key players, integration of achievements, and division of labor and cooperation. Deepen the professional division of labor within industries and products, promote cross-industry and cross-regional integration, and avoid “involution” competition. Establish cross-regional industrial cooperation mechanisms led by the industrial chain and with enterprises as the main body, supporting the eastern region to drive the development of emerging industries in the central and western regions and the northeastern region according to local conditions. Under the premise of ensuring safety, promote the healthy and orderly development of the low-altitude economy and commercial aerospace.

(viii) Proactively plan for future industries. Explore diverse technological routes, typical application scenarios, feasible business models, and market regulatory rules to promote the development of future industries such as quantum technology, biomanufacturing, hydrogen energy and nuclear fusion energy, brain-computer interfaces, embodied intelligence, and sixth-generation mobile communications, and accelerate the formation of a relatively complete industrial ecosystem. Establish a mechanism for increasing investment and sharing risks in future industries, make full use of existing fiscal policies to support the development of future industries, and guide social capital to continuously increase investment.

(ix) Promote the deep integration of the real economy and the digital economy. Improve the systems for determining data ownership, market transactions, rights distribution, and interest protection; implement pilot demonstration projects related to data elements; and fully unleash the potential of data elements. Optimize the layout, construction, and operation of national data infrastructure; deepen the digital transformation of the manufacturing industry; implement projects such as “Eastern Data, Western Computing,” intelligent manufacturing, and the innovative development of the industrial internet; and build a national integrated computing power network and a national blockchain network. Improve the policy system for promoting the digitalization of industries and the industrialization of digital technologies; and create internationally competitive digital industry clusters.

(X) Fully implement the “Artificial Intelligence+” action plan. Promote the transformation of traditional industries by artificial intelligence, and accelerate the application of next-generation intelligent terminal scenarios such as intelligent connected new energy vehicles, AI mobile phones and computers, and humanoid robots. Accelerate the innovation of digital and intelligent technologies such as artificial intelligence, break through basic theories and core technologies, and strengthen the efficient supply of computing power, algorithms, and data. Develop national pilot bases for AI industry applications and high-value application scenarios according to local conditions and industry-specific policies, and vigorously promote the application of AI in various industries. Construct a technology monitoring, risk warning, and emergency response system to ensure that AI is safe, reliable, and controllable.

IV. Focus on promoting innovation in development methods

(XI) Construct a green, low-carbon, and circular economic system. Strengthen green manufacturing, develop green services, and expand the green energy industry. Adhere to a combination of source reduction, process control, and efficient end-of-pipe treatment, and coordinate the green transformation of key industries, accelerating green technology innovation and the promotion and application of advanced green technologies. Improve the incentive mechanism for green consumption, strengthen the construction of a green product certification and labeling system, enhance the level of green consumption, and drive the supply of green products through green consumption. Build a number of zero-carbon factories and industrial parks. Improve the total resource management and comprehensive conservation system, and improve the waste recycling system.

(XII) Optimize the green development policy toolbox. Implement fiscal, tax, financial, investment, pricing, science and technology, and environmental protection policies to promote green and low-carbon development. Improve the mechanism for realizing the value of ecological products, fully implement the dual control system for total carbon emissions and intensity, and improve the carbon emission statistical accounting system, standard measurement system, product carbon labeling certification system, and product carbon footprint management system. Improve the carbon pricing mechanism with the national carbon market as the main body, expand the coverage of the national carbon emission trading market, optimize the carbon emission quota allocation scheme, accelerate the construction of the greenhouse gas voluntary emission reduction trading market, and improve the national unified green certificate market. Promote financial institutions to provide diversified green financial products. Optimize government green procurement policies and improve the green tax system. Implement an agricultural subsidy system oriented towards green ecology.

(XIII) Actively promote the energy revolution. Focusing on the goal of carbon peaking and carbon neutrality, we will develop advanced nuclear fission energy in an orderly manner, build a high-proportion renewable energy power system, improve policies and measures for the consumption and regulation of new energy, organize demonstrations and promotion of major application scenarios, accelerate the greening process of energy use in production and daily life throughout society, promote the revolution in energy consumption, supply, technology and system, and strengthen international cooperation in all aspects.

V. Steadily Advance Institutional and Mechanism Innovation

(XIV) Focus on deepening reforms by closely integrating science and technology with the economy. Deploy science and technology tasks as needed in major national engineering projects, and improve the demand-oriented topic selection system, the management system that aligns responsibilities, rights, and interests, and the application-oriented evaluation system. Deepen the reforms of empowering job-related scientific and technological achievements and the separate management of assets. Allow eligible state-owned enterprises to carry out various forms of incentives. Build an open, shared, and secure national integrated data market, improve the efficient technology market, and promote the efficient aggregation and smooth flow of various advanced and high-quality production factors.

(XV) Improve the market supervision system. Improve the market access system and strengthen anti-monopoly and anti-unfair competition measures. Strengthen governance in fields such as artificial intelligence and biotechnology. Strengthen cross-departmental joint supervision, innovate supervision methods, reduce the number of on-site supervisions, explore a “data-driven decision-making and data-driven management” supervision model, and improve the level of intelligent cross-departmental comprehensive supervision. Establish an efficient comprehensive intellectual property management system and improve the punitive damages system. Study a tax system adapted to new business models.

(XVI) Increase the supply of innovative financial products. Encourage and regulate the development of angel investment, venture capital, and private equity investment; better leverage the guiding role of government investment funds; improve support policies for long-term capital investment in early-stage, small-scale, long-term, and hard-tech sectors; and strengthen patient capital. Encourage banks to develop loan products that align with the characteristics of new productive forces. Enrich the technology innovation bond product system, support high-quality technology companies to list and raise funds, and optimize systems for mergers and acquisitions and equity incentives for technology companies. Develop insurance products covering the entire technology innovation chain and explore businesses such as technology leasing.

(XVII) Allocating advanced production factors globally. Expanding high-level opening-up and making good use of global markets. Encouraging free trade zones to leverage their locational characteristics, resource endowments, and industrial advantages to attract advanced production factors from home and abroad. Leveraging various multilateral and bilateral cooperation mechanisms to promote the joint construction of science and technology parks, Belt and Road joint laboratories, and international advanced technology application promotion centers, proactively building a global innovation cooperation network. Leading the implementation and active participation in international large-scale scientific programs and projects. Encouraging foreign-invested venture capital institutions and international standards organizations to develop in China. Establishing an efficient, convenient, and secure cross-border data flow mechanism.

VI. Deepen the innovation of talent work mechanisms

(XVIII) Cultivating Talents Urgently Needed for the Development of New Productive Forces. We will comprehensively promote the integrated reform of the education, science and technology, and talent systems and mechanisms. We will promote the improvement and expansion of higher education, develop new research universities, and optimize the adjustment mechanism of university disciplines and majors based on industrial and technological development trends. We will promote the high-quality development of modern vocational education and comprehensively advance the work-study integrated skills training model. We will adhere to cultivating talent through practice. We will encourage enterprises and universities to jointly cultivate customized talents, and support master craftsmen and highly skilled personnel to serve as part-time teachers in vocational school internships and practical training. We will give full play to the important role of popularizing science and technology in improving the quality of the workforce.

(XIX) Improve policies for talent utilization and mobility. Implement tax incentives, improve the lifelong vocational skills training system, implement the manufacturing talent support plan and the professional and technical personnel knowledge update project, and support employers in cultivating talent. Accelerate the decoupling of the assessment and incentive of scientific researchers from project applications, paper publications, and awards, and prevent the simple determination of salaries, professional titles, and benefits based on talent “hats”. Accelerate the removal of various hidden barriers and facilitate the exchange of talent among universities, research institutes, and enterprises. Improve the “new eight-level worker” vocational skills grading system and facilitate the upward development of industrial workers.

VII. Strengthen Organization and Implementation

All regions and relevant departments, under the centralized and unified leadership of the Party Central Committee, must strengthen the concept of a unified national approach, adhere to adapting to local conditions, enhance categorized guidance and overall coordination in key areas, and optimize the layout of major productive forces. They must adhere to the principle of establishing before dismantling, and seeking progress while maintaining stability; they must avoid abandoning the real economy for the virtual economy, pursuing large-scale and comprehensive development, or creating bubbles; they must avoid industrial hollowing out or industrial discontinuity; and they must avoid blindly pursuing innovation while neglecting other aspects. Leaders at all levels must establish and practice a correct view of performance, explore development paths in light of local realities, and strictly prohibit the abuse of policies under the guise of developing new productive forces. Those who rush into projects and make blind investments, causing significant losses, will be held strictly accountable. Strengthen inter-departmental coordination and cooperation to form a synergy. The Central Financial and Economic Affairs Commission and the National Development and Reform Commission should coordinate theoretical research, strategic planning, cross-regional and cross-departmental coordination, and follow-up monitoring and evaluation. Experiences and practices should be summarized in a timely manner, and publicity and promotion should be strengthened to create a favorable atmosphere. Major matters should be promptly reported to the Party Central Committee and the State Council according to procedures.