China Intensifies Push into ‘Future Industries’ to Gain Technological Edge Over U.S.

With “Made in China 2025” still fresh in memory, Beijing is now accelerating efforts to dominate emerging technologies through a growing focus on so-called “future industries” amid its ongoing tech rivalry with the United States.

The Chinese government is advancing a new growth strategy that emphasizes innovation and industrial transformation.

The term “future industries”, first introduced by President Xi Jinping in 2020, refers to sectors built on early-stage foundational technologies that hold significant long-term promise.

As outlined in the 2021–2025 Five-Year Plan, China initially prioritized areas such as brain-inspired intelligence, quantum computing, genetic technology, future communication networks, deep-sea and space exploration, and hydrogen energy and storage. The list has since broadened.

In 2024, the Ministry of Industry and Information Technology (MIIT) expanded the scope to include fields such as humanoid robotics, 6G infrastructure, brain-computer interfaces, large-scale AI data centers, and next-generation aircraft.

Progress to Date:

Hangzhou, the capital of Zhejiang province, has emerged as a rising tech hub — often dubbed China’s new “Silicon Valley” — attracting global attention to its thriving start-up scene.

Six notable firms, collectively known as the “Six Little Dragons”, have stood out:

• DeepSeek

• Game Science (creator of Black Myth: Wukong)

• Robotics companies Unitree and Deep Robotics

• Neuralink-inspired BrainCo

• Manycore, focused on spatial intelligence

According to Morgan Stanley, China now accounts for 56% of publicly listed humanoid robot companies and 45% of humanoid system integrators globally.

In biotechnology, China has also made considerable strides. As of March 2025, it had approved five CAR T-cell therapies for blood cancers — second only to the U.S., which has six. Homegrown companies like WuXi AppTec have become global leaders, prompting U.S. lawmakers to liken it to a “Huawei of biotech” due to national security concerns.

What Lies Ahead:

Beijing is investing heavily in these emerging sectors, recognizing their critical role in achieving sustainable growth and maintaining competitive parity with the U.S.

To spur innovation, the MIIT in 2023 rolled out a challenge-based system, inviting firms and research groups to tackle specific tech problems within two years, with winners receiving prioritized funding and support.

This year, the focus is on achieving breakthroughs in quantum technologies, atomic-level manufacturing, and clean hydrogen energy.

Despite a sluggish overall job market, tech companies in cutting-edge fields — such as robotics — are experiencing a talent crunch, offering salaries up to four times the national urban average to attract skilled professionals.

In support of financing innovation, China is planning to reopen listings for unprofitable start-ups on its tech stock exchanges. Additionally, Shanghai is piloting new financial mechanisms such as blockchain-based trade finance tools and tech-focused innovation bonds with built-in risk-sharing features, as announced by stock market and central bank officials during the Lujiazui Forum in June.