In August, as economic conditions and business prospects improved, investment promotion efforts across the country accelerated significantly.

While central and local governments continue to implement policies to support businesses and alleviate their difficulties—providing targeted and rapid assistance to help companies resolve development challenges—they are also taking a longer-term view, focusing on key aspects of future industries such as industrial upgrading, the "dual carbon" goals, and the development of new energy.

At the same time, a number of relevant policies have been introduced, setting the tone for regions across the country and even nationwide.

Now, let’s take a look at the major policies related to investment promotion that were introduced in August, and explore how local governments and investment promoters can navigate these policy trends to capitalize on the momentum.

Industry: Upgrading Foundational Capabilities

I’m sure the term “chokepoints” is familiar to all of you investment promotion professionals.

In the past, we often mentioned that China’s chip technology was facing “chokepoints.” Today, regions across the country are working to address this issue by increasing R&D efforts, cultivating advanced talent, and strengthening academic and technical exchanges.

But once the chip issue is resolved, will similar problems arise in other sectors? It’s hard to say.

If we fail to resolve these technical issues at their root, we risk remaining perpetually at the mercy of others in industrial development. Semiconductors serve merely as a microcosm, reflecting the significant shortcomings that exist across the entire industrial foundation.

Against this backdrop, to solidify the foundation for high-quality industrial development, the *Catalog of Innovation and Development in Industrial Foundations (2021 Edition)* was issued to provide guidance and direction for the development of foundational industries.

To improve industrial infrastructure capabilities, the core issue to address is the weakness in scientific and technological innovation capacity. However, this is not merely a matter of funding; it also involves the entire innovation ecosystem.

Modern scientific research no longer relies solely on top-tier talent; the mid-tier and grassroots levels also serve as vital soil for scientific innovation.

We can see the nation’s efforts in this regard, as evidenced by its determination to vigorously cultivate innovative enterprises such as specialized, refined, distinctive, and new (SEDN) firms, “Little Giants,” “Hidden Champions,” and “Single-Champions.”

Another key aspect is transforming the innovation model for industrial foundations. In the past, our innovation tended toward “imitation”; at this stage, developing high-level, self-reliant, and independent innovative technologies represents the future direction of innovation.

However, this requires guidance from top-level design, and the "Catalogue for the Innovative Development of Industrial Foundations" serves precisely this purpose, acting as a key tool for implementing the Industrial Foundation Restructuring Project.

Similarly, the release of the *Catalog* provides robust decision-making support for the development of local industrial foundations and guides future industrial layout planning.

The Catalog specifically notes that the development of the industrial foundation requires the government and the market to fulfill their respective roles and work together in a balanced manner.

The government’s strength lies in providing guidance and concentrating efforts on resolving a batch of “bottleneck” projects; the combination of market and government forces creates a long-term policy mechanism to address industrial infrastructure issues; finally, the majority of the space is left to market-driven mechanisms to cultivate “specialized, refined, distinctive, and innovative” small and medium-sized enterprises (SMEs) and various “champion” enterprises to solve industrial infrastructure innovation challenges.

Energy: A New Direction for Investment Promotion

The recent power rationing in the Sichuan-Chongqing region has been as intense as the recent heatwave, with temperatures remaining stubbornly high.

The heatwave has caused a surge in residential electricity consumption. Coupled with historically low rainfall and extreme drought in the Sichuan-Chongqing region, this has resulted in insufficient hydropower generation in Sichuan, a major hydropower province. The combination of these two factors has led to power shortages in the region, forcing industrial power cuts.

The frequent power rationing incidents in recent years have compelled the nation and its people to once again focus on the issue of energy security.

Energy and the "Dual Carbon" Goals Drive the Transformation of New and Traditional Energy Sources. To accelerate the development of the new energy industry, a series of policies regarding energy and the "Dual Carbon" goals have been issued recently.

• On August 18, nine departments, including the Ministry of Science and Technology and the National Development and Reform Commission, issued the "Implementation Plan for Science and Technology Support for Carbon Peaking and Carbon Neutrality (2022–2030)";

• On August 24, five departments, including the Ministry of Industry and Information Technology, jointly issued the "Action Plan for Accelerating Green and Low-Carbon Innovation and Development in Power Equipment";

• On August 25, the Ministry of Industry and Information Technology released the "Guiding Opinions on Promoting the Development of the Energy Electronics Industry (Draft for Public Comment)."

Each policy document emphasizes the need to accelerate the development of new energy industries such as solar, hydropower, and hydrogen energy.

On the one hand, the reins of energy security must be firmly held in our own hands; on the other hand, “secure decarbonization” is also crucial, as the phasing out of traditional energy sources must be based on the secure and viable substitution by new energy sources.

Among these, the "Guiding Opinions on Promoting the Development of the Energy Electronics Industry" is somewhat unique, as it primarily focuses on the strategic layout of the energy electronics sector.

What is the energy electronics industry?

It refers to the widespread application of next-generation information technologies—such as 5G/6G, advanced computing, artificial intelligence, and the Industrial Internet—in the energy sector.

The goal is to achieve an annual output value of 3 trillion yuan in the energy electronics industry by 2025.

Investment promoters with a keen sense of opportunity should be able to recognize the potential and prospects here; energy storage, photovoltaics, information technology, and end-user products are key links in the development of the energy industry.

Following the release of the "Guidelines," they will also serve as a roadmap for regions reorienting toward energy and photovoltaic industries, helping them identify core competitive advantages within the industrial chain and thereby capitalize on the emerging opportunities in the "energy electronics" sector.

Land: Standard Land Supply

In early August, the Ministry of Natural Resources issued the "Notice on Actively Ensuring Land and Maritime Resource Allocations," which emphasized strengthening the allocation of land use quotas and encouraging the redevelopment of underutilized land.

In recent years, the momentum of industrial transformation and upgrading in first- and second-tier cities has been strong. Efforts such as phasing out enterprises in outdated industries, attracting high-value-added industrial chain enterprises, and guiding local industrial innovation and transformation all rely on land—the most fundamental element for projects to take root and flourish.

The "Notice" explicitly states that "land resources must follow the projects," while also clarifying that all regions nationwide must actively promote the supply of "standard land." Following the principle of "construction can begin immediately upon land allocation," it calls for the implementation of a "standard land" transfer mechanism for industrial land.

The term “standard land” can be broken down into two components: “standard” and “land.”

The term “standard” ensures that a plot of land is transferred with predefined indicators for industry, investment, and planning. As a result of these “standards,” the “land” becomes a plot with specific conditions attached.

In this way, production factors follow the projects, accelerating the pace of project investment and construction. This enables the process from securing land based on standards to moving in ready to operate to be completed in just 2–3 months, or even faster.

However, accelerating project implementation is just one aspect. Another advantage is that it allows scarce land resources to achieve maximum efficiency under equal conditions.

Against the backdrop of high-quality development, innovative approaches to optimizing land use efficiency—such as “standard plots,” “performance evaluation based on output per mu,” and “replacing old industries with new ones”—are constantly emerging. Whether in first- and second-tier cities or third- and fourth-tier cities, this represents a major future trend that requires special attention from local governments.