March 5, 2026 — China’s government work report for 2026 has, for the first time, introduced the concept of an “intelligent economy” as a new economic form. The move signals a strategic push to systematically operationalize “new quality productive forces” and shift the economy towards high-tech, self-reliant growth.
A Systemic Push for New Growth Drivers
The report places the cultivation of new growth drivers as a primary task for the year, explicitly positioning “new quality productive forces” as the core engine for high-quality development. This involves a three-pronged approach: upgrading traditional industries, fostering strategic emerging sectors, and nurturing future industries.
- Traditional Industry Upgrade: The state will deploy 200 billion yuan from ultra-long-term special treasury bonds to support a new batch of major technological renovation projects, focusing on large-scale equipment renewal.
- Emerging & Future Industries: The plan encourages state-owned enterprises to open application scenarios and aims to build emerging pillar industries in integrated circuits, aerospace, biomedicine, and the low-altitude economy. A dedicated growth and risk-sharing mechanism will be established to cultivate future industries like future energy, quantum technology, embodied AI, brain-computer interfaces, and 6G.
“By aggregating and optimally allocating production factors, especially capital, the government is systematically laying out and supporting the development of new quality productive forces,” said Zhao Gang, president of Sage Institute of Industry. He expects funding to be heavily tilted toward these strategic areas.
“Intelligent Economy” as the Strategic Pivot
The inaugural call to “foster the new form of an intelligent economy” and deepen the “AI Plus” initiative marks a significant evolution. It was first mentioned in the 2024 report, reiterated in 2025, and now elevated to define a new economic paradigm.
“This signifies that the intelligent economy has become the key lever for elevating new quality productive forces,” Zhao analyzed. “The focus of AI development is shifting from ‘tool empowerment’ toward constructing a wholly new economic form driven by intelligence.” He predicts accelerated expansion for AI, intelligent terminals, and industries integrating intelligence with green technology.
State as Guide, Market as Decider
While emphasizing a stronger governmental role in guiding strategic industries—including using state funds as “patient capital”—the report implies a clear boundary. “The government should act as a guide, planner, and facilitator in future industries,” Zhao stated. He warned against the state replacing the market or local governments rushing into homogenized projects, stressing the need to respect market rules and corporate autonomy.
Tackling the Innovation Bottleneck
Acknowledging persistent gaps in core technologies, basic research, and talent, the report dedicates a separate section to achieving “high-level sci-tech self-reliance.” Key measures include leveraging the “new national system” for breakthroughs, building international sci-tech innovation hubs in Beijing-Tianjin-Hebei, the Yangtze River Delta, and the Greater Bay Area, and strengthening enterprises’ role as innovation protagonists.
Experts anticipate the contribution of innovation-driven growth to accelerate. “If the contribution of total factor productivity to growth can be raised to around 40%, it will not only offset the decline in contributions from capital and labor but also enhance the quality of economic development,” said Wang Yiming, vice chairman of the China Center for International Economic Exchanges.