Roadmaps in China's Planned Economy

6/9/2021

Seeing the future of Chinese tech and innovation.

Every four to five years, countries all over the world hold public elections, bringing in new leadership, new trajectories, and movements.

China is well-known for its unique planned economy – national leadership is not directly elected by the public, but instead indirectly elected through the National People’s Congress. Sometimes it is referred to as a socialist-based market economy. The political leadership then issues a new Five-Year Plan (FYP) detailing the desired trajectory and goals of the government within the following five years.

So what does this have to do with tech in China? Well, if one better understands the principles behind the planned economy, then they will also understand the movements in tech and IP in China. Various documents published by the Chinese government make for great roadmaps; making it easier to predict resource allocation.

The National Intellectual Property Strategy Guideline Principles, promulgated by the State Council in 2008 is one roadmap that can be useful for those interested in Chinese tech.

Innovation’s Crouching Tiger has been following this document among other plans, including the “2014-2020 Strategic Action Plan for Further Implementation of State Intellectual Property”. Looking at figures set out by the plan (see table below), one would be surprised to see how these aggressive KPIs had been achieved in 2013, 2015, and 2020.

Once targets are set, the governments at the provincial and municipal levels plan their corresponding sub-targets accordingly and allocate resources to reach them.

An IP monetization transaction boosting these indices will receive the most support from government officials. As such, when planning for IP monetization in China it is beneficial to think about how to create a win-win situation.

Another roadmap, already mentioned, that is even more broad and comprehensive is the Five Year Plan.
With these roadmaps in mind, an effective IP monetization strategy can be formed.

According to China Briefing, there are no major policy changes within the 14th Five-Year plan, issued in 2020. However, the government is shifting its focus in many various areas:

Replacing high-speed growth with high-quality growth;
Rebalancing its economy with supply-side structural reform;
Expanding domestic demand, while continuing to support international export markets;
Driving modernization through innovation and technological advancements; and
Promoting high-end, intelligent, and green production.

From observing the newest FYP, investors and those looking for investments know that China plans to move up in the global supply chain and is working on producing higher quality, cutting-edge products.
Green energy is a new focus. All of this information helps us to form a larger picture of what exactly is going on in China now, in the next five years and even beyond.

Also, the development of fintech will greatly be boosted by this new FYP, especially in areas where the product or service is in lines with “expanding domestic demand, while continuing to support international export markets.”

Connect with us and read more about our interpretation of these resources for business opportunities, intellectual property, and technology in China by visiting our blog at ictiger2020.com – e.g., The Road from Quantity to Quality in Chinese Innovation.

Find us on our Facebook at ICTiger2020 for regular news updates on related topics.

Sources:
Our very own, Innovation’s Crouching Tiger.
https://www.china-briefing.com/news/what-to-expect-in-chinas-14th-five-year-plan-decoding-the-fifth-plenum-communique/

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