China to boost innovation to create new development: CPC

BEIJING - Innovation will provide new momentum for China's development from 2016, the Communist Party of China (CPC) said Tuesday.

"Development must rest on the basis of innovation," the CPC said.

Driven by innovation with first-mover advantages, allocation of labor, capital, land, technology and management will be focused on stimulating entrepreneurship, so that new technology, industries and business models will prosper, according to proposals by the CPC Central Committee for the 13th five-year plan (2016-2020) for national economic and social development.

Startup incubators and crowd-funding will be promoted, angel investment and venture capital investment encouraged; government intervention in private companies will be restricted, approvals streamlined, and administrative fees cut. A ubiquitous, fast, mobile information network will balance improvements to the transportation and mail delivery networks.

Green technology, biotechnology, information technology, smart manufacturing, high-end equipment and new energy will be generously supported. The Internet Plus action plan will integrate the Internet with traditional sectors of the economy, and China will lead the world in developing the next generation of Internet. Support for research in fundamental sciences will lead to breakthroughs in sectors such as information technology and aerospace science.

The proposals require better protection of intellectual property and allow researchers to share more of the profits of their achievements.

Universities and research institutes will have the liberty to become innovation leaders with greater powers in making decisions on research and funding.

In the next five years, China's position in the global value chain will be lifted, with more added value and technology on more products.

The manufacturing sector will become more flexible, smarter and more sophisticated.

Excess capacity in certain industries will be digested through economic and legal means to improve the market exit mechanism.