(Yicai) Dec. 13 -- A top-level annual meeting that sets China’s economic agenda for the year ahead has for the first time proposed using disruptive and cutting-edge technologies to develop new industries, models, and dynamics.

The Central Economic Work Conference, held in Beijing from Dec. 11 to yesterday, has made building a modern industrial system led by scientific and technological innovation the priority for next year's key economic work.

The proposal shows that China encourages such technological and methodological innovation, said Huang Yan, vice chairman of the Shanghai Private Equity Association. “For the first time, the meeting mentioned some new fields, such as private aerospace and low-altitude economy, which I believe will become the focus of investors,” he added.

The conference also encouraged venture capital and equity investment for the first time, which will significantly increase the confidence of investors, according to Huang, who is also managing partner of Lantern Venture.

There will be opportunities for domestic substitution in hard tech industries with high technical barriers and an inability to bridge the gap through subsidies and investment in the short term, according to Zhang Wei, chairman of Cornerstone Capital. 

For example, China's chip industry and sectors related to the third industrial revolution, including operating systems and industrial software, have a unique historical opportunity after the China-US trade conflict because for security reasons China needs to redo what the United States has already done, Zhang noted.

Emerging industries with high technological content but low entry barriers have opportunities for technological innovation, Zhang said. Compared with other countries, China is successfully competing or leading in emerging industries such as the new energy industry, Zhang pointed out.

But equity investment in China also faces new challenges. Domestic investment fell 42 percent in the six months ended June 30 from a year earlier, while deals dropped 38 percent, a report by investment services platform Zero2IPO Group showed. 

That was caused by the changing overall environment and greater difficulty in raising funds and exiting, and it is normal for only the fittest to survive, according to Huang. Investors need to maintain a positive attitude and actively consider projects, he added, noting that they should also anticipate opportunities and make arrangements in advance, waiting for the market to pick up.

Editor: Martin Kadiev