Beijing’s Industry Becomes Cutting Edge
In December 2017, Beijing Municipality issued 10 guidelines to promote its cutting-edge industries and develop the city into one of the world’s technological innovation centres.
Since the implementation of the General Plan for Promoting the Construction of a National Centre for Technological Innovation in Beijing, the capital has been gradually phasing out Beijing’s non-essential functions as China’s capital, including industrial restructuring and transformation from aggregating resources to functional dispersal. A major step has been made towards constructing a national centre for technological innovation. With this end in view, Beijing Municipality issued the Guidelines on Promoting Ten Cutting Edge Industries through Technological Innovation on December 26, 2017 and the development shall be on a less lavish scale than before in a green, intensive and smart manner. In compliance with these guidelines, ten cutting edge industries shall be given a high-priority rating—namely information technology, integrated circuit, health & medicine, smart equipment, energy conservation and environmental protection, smart newenergy vehicles, new materials, artificial intelligence, software and information services and scientific and technological service industry in Zhongguancun Science City, Huairou Science City, Future Science Park and Beijing Economic-technological Development Area.
The Ten Guidelines shall, on an innovation-driven basis, be set to implement the strategy for coordinated development of Beijing, Tianjin and Hebei, and set standards for industrial upgrading to phase out Beijing’s non-essential functions as China’s capital and promote development. Furthermore, the Guidelines give fascinating insight into key industries, key technologies and the strategic positioning of Beijing, catching a glimpse of a developing industry, enterprises and industrial innovation.
Promote Technological Innovation, Development Quality and Benefits
The following cutting-edge industries shall figure prominently: science and technology, product process, sophisticated inventions, material components, organisational forms and innovative applications. By staying ahead of the curve when it comes to longterm economic and social development, technological breakthrough shall be made in key fields; and the spotlight shall be turned on knowledge-intensive technology, economic and social contributions, energy conservation, growth rate and tangible benefits to provide high-end and high-value orientation, leadership, integration, intensification and low-carbon qualities.
The development of cutting-edge industries shall significantly improve quality and benefits. In addition, the project shall contribute to innovative development and innovative integration for optimising the capital’s core functions. The Made in China 2025 Executive Summary of Beijing was issued to this end. The capital promotes strategic restructuring of cutting-edge industries and poises itself to further innovate based on a solid foundation. In compliance with the Ten Guidelines, the relevant departments shall keep key issues in perspective through meticulous planning towards the goal of driving innovation, high-end development, coordinated integration, green growth and market orientation; technological innovation shall be on the agenda and the operations of leading enterprises shall be extended, along with improved quality and benefits. R&D investments normally account for over three percent of main business revenue; enterprises shall lead the way in cutting-edge technologies and make a breakthrough in strategic technologies. They shall be taken to the forefront of the field of technology at home and abroad.
Supporting measures for organisation, policy and funds are expressly set forth in ten documents. To promote organisational guarantee, Beijing shall establish coordinated mechanisms, promote closer coordination of the Beijing-tianjin-Hebei Region, promote municipal-district coordination and central-local coordination, undergo the introduction and construction of major projects; integrate policies, take the lead in implementing reform policies and create ideal conditions for industrial innovation; make full use of municipal-district industrial funds and government funds, expand private investment and render full support to major projects, common and key technology R&D and construction of public service platforms; improve talent cultivation mechanisms, form policies for introducing talent and attracting it to settle in Beijing; to support market guarantee, promote the development and industrialisation of the first major protection of intellectual property; to support element guarantee, give preference to land and utilities oriented to the needs of key industries and improve the level of public services. Policies will take shape according to industrial characteristics.
Aims and Objectives in Key Areas
The Ten Guidelines deal with the industrial advantages of Beijing and set out the aims and objectives for 2020. Meanwhile, the Guidelines give a description of key subfields, key technologies, optimisation targets for industrial layout, industrial resources, carriers and key projects, pointing the way to the future.
New-generation IT Industry
New- generation information technology refers to emerging strategic industries with innovation, drive and penetration in the superlative degree of comparison only. These industries are standing on the threshold of newround development, presenting an opportunity for Beijing. In accordance with the Guideline on Promoting NewGeneration Information Technology Industry through Technological Innovation in Beijing, departments will boost development of integrated circuits, take the lead in research on artificial intelligence, engage in innovation in big data, guarantee adequate supply of cloud computing, better voice concerns about cyberspace safety, lead the way in fifth- generation mobile communication technology (5G), optimise and pool resources for industrial innovation, improve the level of development and promote closer integration of new- generation
information technology and economic and social development. Oriented to the needs of six fields, a series of indices and key projects has been made related to the guidelines. Regarding cloud computing and big data, the goal is to set up the “Auspicious Cloud Project 3.0,” establishing a cloud ecosystem covering healthcare, transportation, education and finance, build the Beijing, Tianjin and Hebei Region Pilot Area and promote the construction of a cloud computing industrial base— China Digital Dam.
In accordance with the Guideline, usher in a new period of innovation, lead the way in a number of key technologies and intellectual property rights at the international level, foster competitive multinational corporations with worldrenowned brands and industrial clusters with cutting-edge technology; set the basic pattern of regional coordinated development, promote closer integration of new-generation information technology, economic and social development and participate in more global competitions by 2020.
Integrated Circuit Industry
The relevant departments in Beijing consider the industrial development of integrated circuits to be very important. Great strides have been made in the industrial scale, complete industrial chain, design and manufacturing technologies, product coverage and innovation and start-up ecosystem. In compliance with the Guideline on Promoting the Industrial Development of Integrated Circuits through Technological Innovation in Beijing, the capital will establish a platform for technical innovation, make a breakthrough in core design technology, give priority to the coordination of industrial chain and independent support for equipment, implement the strategy of “Core Enterprises-key Fields-major Products,” improve the level of integrated circuit design, manufacturing and equipment and set up a technological innovation base with an international reputation.
Pursuant to the Guideline, the capital will set up a technological innovation base with an international reputation and expand industry scale through industrial restructuring and innovation in key technologies by 2020; take design technologies to the forefront of key fields globally, further provide support in manufacturing techniques for domestic high- end chips and make mass production an advantage over competitive businesses; foster key enterprises to take the lead and make a talent introduction and training system oriented to the needs of the industry.
Medical and Healthcare Industry
The competitive medical and healthcare industry meets Beijing’s functional orientation and caters to the mass market, demonstrating its strategic significance. There are huge amounts of resources available for industrial innovation, alongside remarkable achievements in the transformation of new products. New operations and patterns have sprung up, leading to a wide range of applications. Sub-
industries show signs of balanced development and have a dramatic effect in its industry clusters.
To follow the Guideline on Promoting the Development of Medical and Healthcare Industry through Technological Innovation in Beijing, the capital will focus on biomedicine, high- end medical devices and modern medical services and put effort into “Internet+” industry and precision medicine through technical innovation and achievement in transformation. These measures are meant to foster emerging operations, optimise the industrial layout and set the industry on a course to being smart, serviceoriented, ecological and high- end. The medical and healthcare industry will witness a steady increase in scale; development of new drugs in China and R& D investment will account for over six percent of main business revenue by 2020. Meanwhile, industrial layout and industrial structure will be enhanced and the innovation cluster of the new- generation healthcare and service sector will be expanded, improving the level of smart services; the industry will move towards greener development, and energy and water consumption per unit of output value will be lower.
Smart Equipment Manufacturing Industry
Smart equipment gives Beijing an advantage. Research and development plays an important role in the industry and the manufacturing of high-end energy equipment in China, as witnessed by the development and manufacturing of various kinds of smart equipment. In compliance with the Guideline on Promoting the Development of Smart Equipment Industry through Technological Innovation in Beijing, smart equipment, high-end energy equipment and special smart equipment are at the top of the list of priorities to enhance core competitiveness; the high-end equipment manufacturing industry will play a larger role in industrial transformation and upgrade and a national demonstration area of industrial innovation for high-end equipment will be established to open up new areas for system solutions to enterprises across China.
Regarding smart equipment, the focus is on key technical equipment like cuttingedge numerical control machines, robots, additive manufacturing, smart sense and control, smart detection and assembly, smart logistics and storage system integration and solution applications; regarding energy equipment, the focus is on the development of high-end energy equipment, Internet equipment, automated equipment and major equipment and support engineering application and industrialisation; regarding special smart equipment, focusing on making a breakthrough in public security, emergencies, scientific instrument, protection of cultural relics and digital creativity. There is also a focus on enhancing the technical innovation and industrial strength of smart equipment, taking a number of core technologies to the forefront of the field in the world, making a breakthrough in key technologies and equipment, establishing five to seven industrial innovation centres and public platforms for smart robots, additive manufacturing and smart manufacturing solutions, fostering model enterprises in robot system integration, collaborative robots, automatic control systems and smart instruments, creating about 10 midsized solution providers of smart manufacturing systems, establishing a national demonstration area for highend equipment industrial innovation and opening up new areas for system solutions to enterprises across China by 2020.
Energy Conservation and Environmental Protection Industries
Beijing has taken the lead in China’s development of regenerative combustion, high voltage frequency conversion, water treatment, rain and flood comprehensive utilisation and desulfurisation and denitrification. Beijing gathers innovative enterprises with proprietary intellectual property rights in environmental protection, such as Beijing Enterprises Water Group Limited, Beijing Capital Co., Ltd. and Beijing Environmental Sanitation Engineering Group Limited. Beijing has become one of China’s hubs for energy conservation and environmental protection. According to the Guideline on Promoting the Development of Energy Conservation and Environmental Protection Industries through Technological Innovation in Beijing released in December,
2017, Beijing will focus on key areas with top market share, potential in developing energy conservation and reducing emissions, dealing with weak proprietary and intellectual property rights, and increasing demands for economic growth to improve industries by enhancing R&D, market promotion and industrialisation of related products.
While improving industries’ technologies and competitiveness, Beijing needs to further its leading role in China’s energy conservation, environmental protection and resource recycling industries. By 2020, these industries’ key technologies will achieve major breakthroughs, transforming their technological research results; Beijing will develop 10 major enterprises in these industries, each generating 10 billion yuan in revenues; 100 enterprises with revenues of one billion yuan each; enhance the quality and service of core products in the industries, creating global brands; produce benefits of their technologies’ transfer and export of services.
Software and Information Service Industries
Beijing’s software industry plays a leading role in its cutting-edge industries, gathering scientific and technological innovation resources, promoting the coordinated development of Beijing- Tianjin-hebei Region as well as the nation’s innovation development. According to the Guideline on Promoting the Development of Software and Information Service Industries through Technological Innovation in Beijing released in December 2017, Beijing will further consolidate its competitive advantages, enhance its international competitiveness and lead the nation’s development in Internet data and information services.
Beijing needs to achieve great-leap-forward upgrading of next generation software technology to advance innovation of information technology and create new hot spots of consumption. Through integration and innovation, upgrading infrastructure and intelligent manufacturing develops a smart city, enabling breakthroughs in its service industry, and improving information security. Beijing seeks to further open up through innovation.
Beijing needs to consolidate and enhance its software and information industries as a pillar of the city’s economic development. By 2020, an innovative development pattern will be formed, aligned with the city’s positioning as China’s scientific and technological centre; Beijing will lead the nation in the development of Internet data and information services and highlight its industrial convergence; dividends brought by innovation and big data will be unleashed, forming an industrial system with internationally competitive advantages.
New-energy Auto Industry
Beijing’s new energy automotive industry is a leader in China and has rapid growth momentum. Its electric cars entered a growth stage and 170,000 electric vehicles produced by Beijing’s enterprises have been sold, which ranked first in China. For example, BAIC BJEV’S electric cars topped its sales ranking in China for four consecutive years, becoming China’s first business with over 100,000-car sales in this area. Beijing has an integrated system in the new-energy automotive industry and plays an integral role in the country’s innovation of the industry.
According to the Guideline on Promoting the Development of NewEnergy Auto Industry through Technological Innovation in Beijing released in December 2017, Beijing is moving to enhance the innovation of new-energy smart cars, build its industry, promote the gathering of resources and gear up its marketing. By 2020, Beijing will improve technologies for its new-energy automotive industry, including finished car competitiveness and breakthroughs in key parts, and form an innovative system of newenergy smart car; develop new- energy automotive enterprises with high growth and core competitiveness, taking a leading position in productive capacity and China’s green development; complete new- energy vehicle management and data centres to further inspection, testing and leasing services.
New Materials Industry
The new materials industry is a key part of furthering Beijing as China’s scientific and technological innovation centre. Beijing gathers scientific and technological resources of the industry, and its R&D strength takes a leading position in China. Beijing needs to further enhance the R&D of new materials to upgrade the industry, playing a role in the city’s cutting edge industries.
According to the Guideline on Promoting the Development of New Materials Industry through Technological Innovation in Beijing released in December 2017, Beijing
needs to focus on accelerating R&D of key materials to achieve breakthroughs in their technologies, focusing on requirements of production of new materials to transform scientific and technological research results and advance the gathering of new materials industry. By 2020, Beijing will set up advanced R&D institutions, introduce the world’s top scientists and innovative talents to achieve a transformation of major scientific and technological results, and develop world-renowned new material products; build up key enterprises specialising in new materials and form clusters for the industry and further integrated development of the industry in Beijing, Tianjin and Hebei.
Beijing has a great advantage and solid foundation in the artificial intelligence industry. As of September 2017, Beijing had nearly 400 artificial intelligence companies, which ranked first in China; gathered research institutions of artificial intelligence, including more than 10 key national laboratories. Neural network chips and computer vision artificial intelligence developed by organisations based in the city take a leading position in the world. According to the Guideline on Promoting the Development of Artificial Intelligence through Technological Innovation in Beijing released in December 2017, Beijing seeks to enhance its innovation through artificial intelligence technology; push forward the deep integration of artificial intelligence and the real economy to upgrade the outdated industrial economy.
Beijing needs to establish an artificial intelligence innovation system, strengthen basic theory research for the next generation of artificial intelligence, achieve breakthroughs of core technologies and set up innovation platforms for the industry. Beijing needs to further industrial clusters for artificial intelligence and optimise industrial layout; accelerate the application of artificial intelligence to promote intelligent upgrading of the old industrial economy and innovative technologies in key areas including manufacturing, logistics and finance; carry out intelligent innovative applications in education, healthcare and elderly care; boost infrastructure construction for the fifth generation of mobile communication (5G) system, Industrial Internet, Internet of Vehicles and super computers.
By 2020, Beijing will achieve advanced levels in technologies for the next generation of artificial intelligence and its applications have some key technologies that take a leading position in the world, significant original theories will be proposed creating cutting- edge technological results; have leading experts and teams of innovators with global influence, becoming one of the world’s artificial intelligence innovation centres; enhance the industry’s contribution to the city’s social and economic growth, playing an increasing role in the city’s development.
Scientific and Technological Service Industry
Scientific and technological service industry is an area featuring knowledgeintensive and high value, stimulating economic growth and has become one of the pillar industries for Beijing’s economic development. According to the Guideline on Promoting the Development of Scientific and Technological Service Industry in Beijing released in December 2017, Beijing needs to promote the industry in nine areas, including financial, engineering and technological, R&D, incubation, intellectual property and scientific and technological consulting services.
Beijing will develop scientific and technological service enterprises, with international influence, high growth, core technologies and new models of innovation. Beijing will release potential resources for scientific and technological service, increase its marketability, optimise its structure and form a service system led by innovation, enabling its positioning, more rational layout and better coordinated development and playing an increasing role in the city’s technological innovation, transformation of its technological results and economic development.
Beijing worked out the Ten Guidelines to put forward principles focusing on features of various industries according to the requirements of serving national strategies and the city’s position as China’s capital. Beijing continues to enhance its cutting-edge industries based on innovation, achieve high-quality development and accelerate to develop the city into one of the world’s scientific and technological innovation centres.
Zpark, a new-generation IT industry park located in Zhongguancun, Haidian District
Solar photovoltaic panels on Yanqi Island in Huairou District
Office buildings of Netease, a Chinese Internet technology company
Next-generation LCD panel produced by BOE Technology Group Co., Ltd.
An advanced MRI scanner at a hospital
A model of BAIC BJEV’S electric car
At an exhibition centre for AI in Zhongguancun in Haidian District