Five Inquiries into China's Economic Transformation: Confidence and Foundation ① - Innovation Empowerment, Forging a New Form of Intelligent Economy

Deep News03-07

The year 2026 marks the commencement of China's 15th Five-Year Plan period. Following the nation's GDP surpassing 140 trillion yuan for the first time in 2025, the Government Work Report for 2026 has introduced the strategic goal of "forging a new form of intelligent economy." From the emergence of DeepSeek in early 2025 to the impressive debut of Seedance at the beginning of 2026, domestically developed large-scale AI models have consistently captivated global attention. The future, represented by next-generation energy, quantum technology, artificial intelligence, embodied AI, and brain-computer interfaces, has arrived. New quality productive forces have become the central theme driving industrial development. How will these forces create new opportunities in the service and consumption sectors? How will Chinese enterprises expand their global presence in this new phase? What strategies will be employed to actively cultivate emerging pillar industries and ensure a successful start to the 15th Five-Year Plan period? It can be asserted that these endeavors are built on a solid foundation and are fundamentally about confidence.

The 2026 Government Work Report emphasized accelerating high-level scientific and technological self-reliance and self-improvement. It called for seizing the historic opportunities presented by the new round of scientific and technological revolution and industrial transformation, comprehensively enhancing independent innovation capabilities, and providing scientific and technological support for high-quality development. Currently, global technological competition has intensified. The "New Three" sectors—represented by artificial intelligence, robotics, and innovative pharmaceuticals—are experiencing explosive growth and have become the core engines driving new quality productive forces.

Reassessing China's Scientific and Technological Coordinates The rise of the "New Three"—centered on AI, robotics, and innovative drugs—signals that China's scientific and technological innovation has officially entered a new stage characterized by parallel breakthroughs in intelligent leadership, life health, and high-end equipment. The 2026 Government Work Report specifically noted that China's research, development, and application in areas like artificial intelligence, biopharmaceuticals, and robotics are at the forefront globally. This serves as both an acknowledgment of past achievements and a direction for future development.

Intelligence has evolved from a single technology into the "smart brain" of the digital economy, becoming one of China's most globally competitive fields. In 2025, the core AI industry scale in China exceeded 1.2 trillion yuan, with over 6,200 enterprises. The penetration rate of AI applications in large-scale manufacturing surpassed 30%. Domestically developed large models are leading the global open-source ecosystem, while cutting-edge directions like intelligent agents and embodied AI are advancing in sync with international leaders.

The 2026 Government Work Report, for the first time, proposed "forging a new form of intelligent economy," outlining plans to deepen and expand "AI Plus," accelerate the promotion of next-generation intelligent terminals and agents, and foster commercial and large-scale application. From AI phones and AI computers entering millions of households to industrial intelligent agents empowering smart manufacturing; from smart transportation enhancing urban operational efficiency to AI-driven drug discovery shortening R&D cycles—artificial intelligence is permeating all aspects of production, life, and ecology, becoming a core force driving industrial upgrading and the improvement of people's livelihoods. The rapid deployment of ultra-large-scale intelligent computing clusters and new infrastructure featuring computing-power coordination, along with the accelerated construction of a national integrated computing network, provides a solid foundation for the sustained explosion of AI. China is transitioning from a major AI application country to an AI innovation powerhouse.

The robotics industry represents the culmination of modern technology, integrating core technologies such as mechanics, electronics, software, and intelligent algorithms. It is a key indicator of a nation's high-end manufacturing prowess. The year 2026 is regarded within the industry as the first year of humanoid robot mass production. China's robotics sector is undergoing a critical leap from "scale growth" to "quality upgrade." The output of industrial robots continues to grow, finding wide application in automotive, electronics, and equipment manufacturing, thereby driving the transformation of manufacturing towards automation and intelligence. Service robots are entering homes, healthcare, and elderly care scenarios, meeting diverse public needs. Specialized robots play an irreplaceable role in emergency response, deep space exploration, and deep-sea operations.

Innovative drugs are the "national treasure" in the field of life and health, crucial for public safety and the core competitiveness of the pharmaceutical industry. While China's pharmaceutical sector was once dominated by generic drugs, it has now achieved a transition from "catching up" to "running alongside" and even "leading the pack." In 2025, both the number of innovative drugs approved for market and the value of out-licensing deals hit record highs, establishing China as a major growth pole in global pharmaceutical innovation. The 2026 Government Work Report explicitly supports the development of the biopharmaceutical industry. The National Medical Products Administration has established four "green channels"—for breakthrough therapies, conditional approvals, priority reviews, and special approvals—to facilitate "China-first" launches of innovative drugs. It has also optimized review measures for cutting-edge areas like cell and gene therapy and small nucleic acid drugs, and established systems for drug trial data protection and market exclusivity periods. From tackling difficult drug targets to accelerating the availability of treatments for rare diseases, Chinese innovative drugs are safeguarding public health and participating in global pharmaceutical competition and cooperation with original and groundbreaking achievements.

The concentrated emergence of the "New Three" is not a fleeting industrial trend but the inevitable result of long-term accumulation in Chinese scientific and technological innovation, guided by policy and driven by the market. These three sectors correspond to the three strategic directions of digital intelligence, high-end equipment, and life health. They are not only emerging industrial clusters but also core supports for upgrading traditional industries and building a modern industrial system, forming the most prominent technological footnote of the 2026 National People's Congress sessions.

Four Major Advantages Creating Fertile Ground for Chinese Innovation As scientific and technological competition becomes the core arena of international rivalry, developed countries are increasing investment in frontier technologies, attempting to build technological barriers. In this intense global competition, China's scientific and technological innovation is not about isolated breakthroughs but relies on four major advantages to form a systemic and holistic competitiveness, providing solid guarantees for the explosion of the "New Three" and the development of future industries.

First, the ultra-large-scale market serves as the "natural fertile ground" for the transformation of innovative achievements. The market is the source of innovation and the ultimate test of its value. China possesses a population of over 1.4 billion, including more than 400 million middle-income individuals, making it the world's largest, fastest-growing, and most diverse consumer and application market. This is a core advantage unmatched by any other country.

Second, China has developed a globally leading capability in technology transformation, engineering implementation, and scenario adaptation. This is a distinct advantage compared to other technologically advanced nations. Unlike some countries that focus on basic theoretical research but lack industrial application capacity, China leverages its complete industrial chain system to rapidly convert laboratory technologies into practical products. This application-oriented model ensures that scientific and technological innovation remains closely aligned with real-world needs, avoiding impractical "ivory tower" research and allowing China to seize opportunities in global competition through practicality and implementability.

Third, the new-type national mobilization system is an "institutional tool" for tackling key core technologies. The 2026 Government Work Report explicitly proposed leveraging the advantages of this system to advance the攻关 of key core technologies through the entire chain. Under this system, the state coordinates strategic scientific and technological forces, focuses on critical areas such as AI, integrated circuits, biopharma, and industrial machinery, organizes major scientific and technological projects, and strengthens long-term stable support for basic research. Simultaneously, it fully utilizes the market's decisive role in resource allocation, reinforces the primary role of enterprises in innovation, and supports leading S&T enterprises in forming innovation consortiums, making enterprises the main force in technological innovation, R&D investment, and achievement transformation. This model, which combines "concentrating resources to accomplish major tasks" with market vitality, effectively compensates for the shortcomings of individual market entities, such as insufficient R&D investment, long cycles, and high risks. It achieves synergy across the entire chain from "basic research + technological攻关 + achievement transformation + industrial application," enabling China to achieve leapfrog development in strategic and foundational technological fields.

Fourth, stable development provides the "solid chassis" for the continuous advancement of scientific and technological innovation. S&T innovation requires a stable development environment, sustained investment support, and a sound ecosystem. China's long-term stable economic fundamentals, policy environment, and social stability offer the most reliable guarantee for scientific and technological innovation.

Accelerating Innovation Empowerment to Seize Strategic Initiative The year 2026 is not only the start of the 15th Five-Year Plan but also a critical juncture in the accelerated evolution of the new round of scientific and technological revolution and industrial transformation. China's scientific and technological innovation is in a period of major strategic opportunity, where challenges and opportunities coexist, but opportunities outweigh challenges.

Currently, global science and technology are entering a new phase characterized by breakthroughs at multiple points and deep integration. Deep intersections between fields like AI and biopharma, robotics and smart manufacturing, quantum technology and information security are giving rise to a series of disruptive technologies and future industries. AI is evolving from large models to embodied intelligence; robotics is moving from industrial applications towards humanoid forms and greater intelligence; innovative drugs are transitioning from chemical drugs to biologics and cell/gene therapies. The pace of technological iteration is unprecedented.

Facing the new landscape of global technological competition and the opportunities of the era, the 2026 National People's Congress sessions clarified the way forward for scientific and technological innovation: accelerate the achievement of high-level self-reliance and self-improvement in science and technology, and use S&T innovation to lead the development of new quality productive forces. Aligned with the Government Work Report部署, China's scientific and technological innovation must steadfastly follow four paths.

Continue to leverage the advantages of the new-type national mobilization system. Coordinate strategic S&T forces including national laboratories, research institutes, universities, and enterprises. Focus on solving "bottleneck" problems in key core technologies through full-chain攻关, achieving decisive breakthroughs in areas like high-end chips, basic software, core components, and frontier biopharmaceuticals, thereby fundamentally safeguarding industrial security, technological security, and national security. Deepen industrial integration to remove obstacles in the transformation of innovative achievements. First, strengthen the primary role of enterprises in innovation, support leading S&T enterprises in forming innovation consortiums and undertaking major national S&T projects, making enterprises the core force of technological innovation. Second, enhance the construction of pilot-scale testing and verification platforms to solve the "pilot-test bottleneck" in S&T achievement transformation and improve conversion efficiency. Third, improve the science and technology financial services system, providing full-lifecycle financial support for S&T enterprises, and routinely implementing "green channels" for IPOs, financing, and M&A, allowing capital to fuel innovation. Fourth, encourage central and state-owned enterprises to take the lead in opening application scenarios, providing testing and application platforms for technologies like AI, robotics, and innovative drugs, thereby accelerating the落地 of innovative成果.

Cultivate future industries to seize the strategic high ground in global competition. The 2026 Government Work Report首次 proposed establishing mechanisms for increasing investment in and sharing risks related to future industries, and fostering the development of future energy, quantum technology, embodied AI, brain-computer interfaces, 6G, and other future industries. This is a major move in China's forward-looking layout for S&T innovation. Adhere to open innovation and gather global innovation resources. High-level self-reliance and self-improvement does not mean working behind closed doors, but rather independent innovation within an open environment. China will persistently maintain a global perspective and commitment to open cooperation, actively integrate into the global innovation network, strengthen scientific and technological cooperation with countries worldwide in fields like AI, biopharma, and robotics, attract top global talent for innovation and entrepreneurship in China, introduce and absorb advanced international technologies, and enhance its independent innovation capability through cooperation.

A nation thrives when its science and technology thrive; a nation is strong when its science and technology are strong. The 2026 National People's Congress sessions have drawn a grand blueprint for China's scientific and technological innovation. The explosion of the "New Three" demonstrates China's scientific and technological strength. The four core advantages build global competitiveness. The opportunities of the era call for responsibility and action, and the path of endeavor clarifies the direction forward. From AI empowering countless industries to robots entering production and daily life; from innovative drugs safeguarding public health to future industries seizing opportunities, China's scientific and technological innovation, colored by self-reliance and self-improvement, following the path of open cooperation, and aiming to serve the people, is bravely riding the tide and striving for excellence in global scientific and technological competition.

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