At a recent press conference held by the State Council Information Office themed “Delivering High-Quality Results under the 14th Five-Year Plan,” a series of “firsts” and “breakthroughs” were unveiled to highlight China’s remarkable socioeconomic achievements during the 14th Five-Year Plan (FYP) period (2021–25). Academics concurred that China is moving beyond isolated technological catch-up and entering a new phase characterized by system-level empowerment and coordinated high-standard opening up, laying a solid foundation for the 15th FYP (2026–30).

During the 14th FYP period, a series of landmark achievements in “national strategic projects” stood as compelling evidence of the success of China’s innovation-driven development strategy. The Fujian, China’s first domestically built aircraft carrier equipped with electromagnetic catapults, was launched; the country’s first homegrown large cruise ship, Adora Magic City, entered into service; and with China now leading globally in the construction of large liquefied natural gas (LNG) carriers, the nation has secured the “three crown jewels” of shipbuilding. The country’s first space station, Tiangong, was completed and put into operation; the world’s first fourth-generation nuclear power plant began commercial operation; the Chang’e-6 mission achieved humanity’s first sample return from the far side of the moon; and the C919, China’s first self-developed large passenger jet designed to international airworthiness standards, commenced commercial service. This impressive series of “firsts” collectively showcase China’s major breakthroughs in scientific and technological innovation.

Such achievements are the result of multiple systemic factors working in concert, anchored in strategic national prioritization and robust institutional safeguards. The government has unequivocally positioned innovation as the core engine of modernization, driving continuous improvement across the entire innovation chain—from basic research to technological breakthroughs on to commercialization—effectively dismantling innovation “silos.”

Institutional support has been especially evident in strong fiscal and taxation policies. According to the latest data from the National Bureau of Statistics, between January and May 2025, tax cuts, fee reductions, and rebates targeting technological innovation and manufacturing totaled 636.1 billion yuan (approximately $88.8 billion). This includes 140.7 billion yuan in tax incentives (reduced to preferential 15% rates) for high-tech enterprises and emerging industries, significantly lowering corporate research and development (R&D) costs.

Innovation vitality is inseparable from market dynamism. The creation of a unified national market and the implementation of reforms to streamline administration, delegate power, strengthen regulation, and upgrade services have collectively removed institutional barriers and energized high-quality development. According to Zhang Linshan, a research fellow from the Institute of Economic System and Management at the National Development and Reform Commission, these two reform tracks are mutually reinforcing.

The unified national market emphasizes regulatory consistency, mutual recognition of standards, unimpeded market access, and coordinated oversight. These efforts aim to eliminate regional fragmentation and local protectionism, effectively reducing business costs and risks to enterprises, creating economies of scale, intensifying market competition, and spurring enterprises to enhance efficiency and innovation, Zhang elaborated. Meanwhile, the initiative to streamline administration cuts bureaucratic red tape, innovates regulatory approaches, and improves government service efficiency, collectively fostering a stable, fair, transparent, and predictable business environment.

Sustained increases in R&D investment and innovations in financial instruments have served as powerful drivers for technological breakthroughs, stated Sheng Bin, vice president of Nankai University. On one hand, China has consistently increased the proportion of basic research funding during the 14th FYP period, providing long-term, focused support for breakthroughs in frontier fields such as quantum computing and ultra-high voltage transmission. On the other hand, local governments have leveraged industrial funds to mobilize private capital. For instance, Beijing’s “eight government-guided industrial investment funds” have invested 19.4 billion yuan, catalyzing 50.8 billion yuan in private investment and resulting in the formation of multiple trillion-yuan industrial clusters.

Regarding financial innovation, the central bank has introduced a series of specialized instruments to support technological innovation, including a new 300-billion-yuan relending quota for tech enterprises and a 0.25-percentage-point reduction in relending rates, Sheng added.

Finally, both market vitality and global collaboration remain indispensable forces for innovation. Dong Yan, a research fellow from the Institute of World Economics and Politics at the Chinese Academy of Social Sciences, stressed that China has actively promoted regulatory alignment and mutual standards recognition while expanding its network of high-standard global free trade zones (FTZs). Following the release of the 2024 negative list for foreign investment access, all restrictive measures on foreign investment in manufacturing have been eliminated. Meanwhile, China continues to develop high-standard opening up platforms, with 22 pilot FTZs spearheading institutional innovation to ensure steady progress in cross-border trade and investment while balancing openness and security.