With the 20th National Congress of the Communist Party of China now concluded, the blueprint for development has been drawn up, and the call to attract investment has been sounded.

Terms such as “Chinese-style modernization,” “giving the market a decisive role in resource allocation,” and “achieving new-type industrialization in the real economy” have become the primary focus of investment promotion efforts across all regions for the next five years.

With new concepts and goals now established, every investment promotion professional must be a hands-on contributor as we embark on this new journey.

Over the next five years, in which direction should investment promotion efforts shift, and how can investment promotion professionals ignite more “sparks of investment” to realize Chinese-style modernization?

Innovation in New Industrialization

Promoting the development of the real economy is the focal point for advancing new industrialization and building a modern industrial system. The key to strengthening the real economy lies in bolstering the manufacturing sector.

A strong real economy translates to greater economic strength and resilience against risks. This is an ironclad truth of modern economic development; many cities have prospered through the real economy and must rely on it to forge a path toward the future.

Building a modern industrial system can be approached from two angles: on one hand, using industrial manufacturing to support the generation of technological innovation; on the other hand, using technological innovation to empower the upgrading of traditional manufacturing.

Simply put, this can be expressed through two formulas: Industry + Innovation, and Innovation + Industry.

“Industry + Innovation” accelerates the digital, networked, and intelligent transformation of traditional manufacturing, propelling it toward higher levels of development.

Every industry in China has its own “Huawei.”

Whether in traditional sectors like the zipper industry or industrial sewing machines, or in emerging fields such as new energy and biopharmaceuticals.

When you think of sewing machines, what image first comes to mind? Do most people recall the sight of their grandmother in the living room as a child, pedaling a sewing machine to make clothes for the family?

But today, high-end sewing machines can maintain a rotational speed of over 6,000 RPM for extended periods—twice the typical speed of a car engine.

Such ultra-high speeds demand extreme precision from hundreds or even thousands of components, and the global leader in this field is based right here in Taizhou, China.

Jack—the “Huawei” of Taizhou’s sewing machine industry—has not only acquired “hidden champions” in niche segments of the sewing machine market in Germany and Italy but has also successfully transformed itself from a low-end equipment manufacturer into a provider of integrated intelligent solutions.

As traditional manufacturing integrates with informatization, digitization, and industrialization, the number of unmanned factories, lighthouse factories, and future factories in China is gradually increasing.

However, these developments remain relatively concentrated in specific regions and industries. Over the next five years, local governments will need to take more proactive measures to drive more enterprises toward a shift from “manufacturing” to “intelligent manufacturing,” and from “low-tech, labor-intensive, and crude” to “high-tech, precision, and cutting-edge.”

Another key direction is "Science and Technology Innovation + Industry." Focusing on leading industries and emerging sectors, we will develop high-end manufacturing with higher technological content and strengthen strategic emerging industries.

Science and technology innovation serves as the source of inspiration, while high-end industries lead the way. Compared to the "industry + science and technology innovation" model, the "science and technology innovation + industry" approach places greater emphasis on top-level design and the organic cultivation of high-end industries.

Ten years ago, these enterprises were startup teams with fewer than 10 employees; today, they have become nationally recognized specialized, refined, distinctive, and innovative enterprises. Many regions have successfully cultivated such enterprises, and over the next five years, all regions must continue to align industrial chains with innovation chains, attracting more specialized, refined, distinctive, and innovative enterprises, “little giants,” and hidden champions.

We must continue to align with the call in the report to the 20th CPC National Congress to “support the development of specialized, refined, distinctive, and innovative enterprises.” This will enable local manufacturing to upgrade from a “foundational” role to a “strategic” one.

Entrepreneurial Spirit Drives Action

Local investment promotion efforts typically focus on attracting “major investors,” targeting leading enterprises. This is because the entry of a single enterprise has the potential to drive the development of an entire industry in a city.

By the same token, the growth of an outstanding enterprise is inseparable from outstanding entrepreneurs.

In recent years, our country has consistently prioritized the promotion of the entrepreneurial spirit. During the 20th National Congress, the entrepreneurial spirit once again emerged as a key topic in the discussion of state-owned enterprise reform. In the future, not only will private enterprises need to uphold the entrepreneurial spirit, but deepening the reform of state-owned assets and enterprises will also be inseparable from it.

Entrepreneurial spirit has never been in short supply; what is lacking is an environment conducive to its promotion.

As investment promotion professionals who interact frequently with entrepreneurs, we also face the challenge of how to create an environment conducive to fostering and inspiring the entrepreneurial spirit.

Initiatives such as “optimizing the development environment for private enterprises,” “protecting the property rights of private enterprises and the rights of entrepreneurs in accordance with the law,” and “improving the modern enterprise system with Chinese characteristics” are closely linked to the promotion of the entrepreneurial spirit.

This is also why the state and local governments are further refining policies and legal systems to protect and incentivize enterprises and entrepreneurs. At the same time, by further improving industrial protection systems and eliminating entrepreneurs’ concerns, they can focus wholeheartedly on producing first-class products and developing first-class industries.

Secondly, it is essential to foster an atmosphere that supports the growth of entrepreneurs. Many regions have already taken this as a starting point to strengthen the relationship between local governments and entrepreneurs.

For example, “Entrepreneurs’ Day” events in various regions such as Shenzhen, Qingdao, and Xinyang; the “Open Discussion Breakfast Meetings” for entrepreneurs in Wuhu and Nanyang; municipal party secretaries holding umbrellas over entrepreneurs; and provincial governors meeting busy entrepreneurs late at night or at train stations…

As the environment improves, the entrepreneurial spirit spreads and inspires one another. It can even be said that when the entrepreneurial spirit is encouraged, the economy begins to rise; when entrepreneurs collectively “fall silent,” the economy may start to “go downhill.”

Combining Market Forces with Government Action

"Building a high-level socialist market economy system" has become one of the buzzwords following the meeting. Fully leveraging the decisive role of the market in resource allocation and better utilizing the government’s role clarify the direction and substance of this endeavor.

The relationship and roles of the market and the government are often vividly described as the “invisible hand” and the “visible hand.” Only by working in tandem can they form a framework of mutual complementarity, coordination, and promotion.

The operation of market mechanisms is primarily reflected in: the free flow of factors of production, prices reflecting supply and demand, fair and orderly competition, and the ability to promote the survival of the fittest. This also echoes the “National Unified Market” policy released in April of this year.

Establishing a unified national market will facilitate the unimpeded flow of factors of production and resources on a larger scale, ensuring efficient regulation, fair competition, and full openness, thereby allowing capital and technology to flow freely.

When attracting investment, we must embrace the philosophy of “giving and receiving”—allowing “fertile water” to flow freely between different “fields.”

The market also plays a strong role in driving corporate technological innovation. For example, when downstream sectors seek solutions to specific problems from upstream suppliers, the resulting feedback mechanism makes it relatively easier to develop new product features and design concepts.

However, in certain critical sectors—such as the “chokepoints” in industries like semiconductors—it is necessary to “pool resources to tackle major challenges” and concentrate efforts on breakthroughs.

Only by combining these “two approaches” can we drive the stable, healthy, and sustainable development of the economy and industry.