(Yicai) March 20 -- The next five years are critical for China's modernization, and the top priority in the period will be to build a modern industrial system, according to an expert from the Shanghai Academy of Social Sciences.

The outline of the 15th Five-Year Plan released during the Two Sessions gave a clear roadmap on how to build a modern industrial system, Gan Chunhui, executive vice president of the SASS, said at a press briefing yesterday. It puts emphasis on technological breakthroughs in key areas, such as integrated circuits, machine tools, and biomedicine, to improve the independence and control level of the industrial chain.

Moreover, the outline focused on the forward-looking layout of future industries, including quantum technology, brain-computer interface, and biomanufacturing, promoting the low-carbon transformation and upgrading of traditional industries, and accelerating the application of artificial intelligence in various industries, Gan noted.

The core driving force of industrial upgrading is scientific and technological innovation, so China needs to increase investment in basic research and promote the industrial transformation of breakthroughs, he added.

The outline set China's average annual growth in total research and development investment during the 15th Five-Year Plan period (2026-2030) at more than 7 percent, showing the government's commitment to basic research, Gan pointed out.

In terms of research transformation, the outline proposed to build a number of pilot zones for future industries that can link the industrial chain's upstream and downstream segments and set up R&D networks and test bases to reduce enterprises' R&D costs, he said.

Shanghai's Practice

Shanghai has built an industrial system development model in line with the national plan, Wang Jiaxi, assistant researcher at the Institute of Applied Economics of the SASS, said at the media briefing.

In this year's government work report, Shanghai proposed to build a ‘2+3+6+6’ modern industrial system, aiming to create world-class, high-end industrial clusters and promote the 'Shanghai Manufacturing' brand, Wang explained.

The '2+3+6+6' modern industrial system refers to the transformation of traditional industries through two processes -- digitization and greening. Three refers to the city's leading industries -- IC, biomedicine, and AI -- and the first six to the emerging pillar industry clusters: next-generation electronic information, intelligent connected new energy vehicles, high-end equipment, advanced materials, new energy and green low-carbon industries, and fashion consumer goods. The second six refers to future industries, which are future manufacturing, future information, future materials, future energy, future space, and future health.

The total output value of Shanghai's three leading industries climbed 9.6 percent to over CNY2 trillion (USD289.8 billion) last year from 2024, and the total output value of its emerging pillar industry clusters rose 6.5 percent, accounting for 45 percent of the overall industrial output value of enterprises above the designated size, becoming the main engine of industrial growth, Wang noted.

In terms of promoting the development of future industries, Shanghai has set up future industry funds with a total scale of about CNY15 billion (USD2.2 billion) to guide social capital toward the early and mid development stages of hardcore technology, and it has established industry incubators, such as the Shanghai Foundation Model Innovation Center, to help startups finding upstream and downstream partners more easily, Wang pointed out.

Editors: Dou Shicong, Futura Costaglione