Province by Province: How China’s Government is Supporting Bio-manufacturing
China's commitment to advancing bio-manufacturing and fostering a robust bio-economy is evident through its comprehensive regional activities and strategic plans. A pivotal milestone was reached with the release of the "14th Five-Year Bio-economy Development Plan" (the 14th Five-Year Plan) by the National Development and Reform Commission in May 2022. This plan, marking the recognition of bio-economy as a key industry, outlines a strategic roadmap for the next five years.
The 14th Five-Year Plan underscores a focus on four major industries: bio-medicine, bio-breeding, bio-materials, and bio-energy, while also emphasizing support for strategic emerging sectors like bio-medicine, bio-medical engineering, bio-agriculture, bio-manufacturing, bio-energy, bio-environmental protection, and bio-technology services. Moreover, the plan highlights the significance of synthetic biology technology and innovative future foods, such as "artificial protein." Recognizing the potential of these advancements, the plan emphasizes the importance of upgrading the food industry to alleviate pressure on environmental resources associated with traditional farming practices.
Notably, China's leading regional cities, including the Beijing-Tianjin-Hebei region, the Yangtze River Delta region, the Guangdong-Hong Kong-Macao Greater Bay Area, and the Chengdu-Chongqing Twin-City Economic Circle, are designated to serve as bio-economy pilot zones in the 14th Five-Year Plan. Based on the advantages of complete biological industry system, solid scientific research foundation, rich medical resources, and relatively high degree of internationalization, these regions will play a crucial role in establishing technological and industrial innovation platforms
Prior to this, the "14th Five-Year Plan" National Agricultural and Rural Science and Technology Development Plan released in 2021 also set the strategic direction for synthetic biology and future food innovation at the national level. Relying on synthetic biology technology, China is committed to building high-efficiency cell factories and artificial synthetic biology systems, and developing technologies for the cultivation and manufacturing of nutritious foods such as cell-cultured meat, synthetic egg and cream, and functional recombinant proteins. A number of State key laboratories in the field of agriculture, 384 key laboratories of the Ministry of Agriculture and Rural Affairs, 70 national agricultural scientific observation and experiment stations and 110 agricultural scientific research and experiment bases will be established during this period while continuing to develop around the national modern agricultural industry science and technology innovation centers in Nanjing, Taigu, Chengdu, Guangzhou, Wuhan, etc.
The 14th Five-Year Bioeconomy Development Plan serves as a high-level policy framework that sets the direction for the development of the bioeconomy in China. It provides a strategic vision and goals for the growth and advancement of biomanufacturing and related sectors. However, it is at the regional and local levels where the plan is translated into specific policies and initiatives to support on-the-ground practices and foster the development of biomanufacturing. Many provinces and cities have launched regional initiatives in response to the central policy.
Regional Government Bioeconomy Initiatives
China's provinces are forging a transformative path in the realm of biomanufacturing and the bioeconomy. Local "14th Five-Year Bioeconomy Development Plans" have been unveiled in provinces such as Heilongjiang, Yunnan, Sichuan, Henan, and Hubei, signaling a resolute commitment to harness the potential of the bioeconomy and nurture sustainable growth across diverse sectors.
China's provinces and regional hubs have embarked on a remarkable journey towards biomanufacturing excellence and a thriving bioeconomy. This is evident through the release of tailored "14th Five-Year Bioeconomy Development Plans," each highlighting a distinctive vision for sustainable growth in various bio-sectors.
Heilongjiang Province:
Heilongjiang Province stands as a vanguard in China's bioeconomic landscape, unveiling its resolute commitment through the "14th Five-Year Bioeconomy Development Plan." The province's ambitions are magnificently embodied in its aim to achieve a substantial bio-economy scale, constituting an impressive 10% of its regional GDP by the culmination of the 14th Five-Year Plan.
Heilongjiang's strategy reverberates with innovation and progress. It reveres the establishment of robust innovation platforms and bio-industry strategic alliances. This is exemplified by the province's unprecedented one-time construction subsidy of 10 million RMB awarded to entities newly recognized as national industrial innovation centers, engineering research centers, technology innovation centers, and manufacturing innovation centers. For provincial-level innovation platforms with stellar performance evaluations, rewards reaching up to 1.5 million RMB are well-deserved.
The province's foresight extends to propelling research and development. Newly identified national-level and provincial-level strategic alliances are bestowed with financial backing amounting to 1 million RMB and 200,000 RMB, respectively. Innovation across crucial domains such as bio-medicine, bio-manufacturing, bio-agriculture, bio-energy, bio-environmental protection, and bio-medical engineering is propelled through special funds for science and technology, reaching an impressive reward cap of 1 million RMB.
Heilongjiang's dedication is further underscored by its support for exceptional talents. Biotechnology research and development institutions introduced by national high-level talents and overseas luminaries, who hold a significant share percentage, receive a noteworthy one-time subsidy of 4 million RMB.
Encompassing enterprises engaged in biological processing and manufacturing, the province extends new loan interest discount support. This pivotal aid is provided at levels that do not surpass the quoted market interest rate for the same period, with a cap of five years. The province's commitment to innovation culminates in the subsidization of digital (smart) workshops and smart factories, rendering 20% of the investment in fixed assets for projects like pharmaceutical contract R&D organizations (CROs), pharmaceutical contract manufacturing organizations (CMOs), pharmaceutical contract sales organizations (CSOs), and compliance assurance organizations (CIOs) eligible for support, reaching up to 5 million RMB.
Sichuan Province:
Sichuan Province asserts its dynamic role within China's bioeconomy with unparalleled ambition. The province boldly targets a bioeconomy scale surpassing 1.5 trillion RMB by the year 2025. The foundation of this aspiration lies in the province's thriving fermentation industry, particularly within sectors like amino acids, organic acids, and antibiotics.
Sichuan's strategic prowess extends to Chengdu, the capital city, poised to emerge as a nucleus for fermentation-based production. With an established ecosystem and infrastructure, Chengdu is uniquely positioned to lead innovations within the bioeconomy. Sichuan's alignment with the "14th Five-Year Plan for the Development of Strategic Emerging Industries" underscores its commitment to pioneering research and technology.
Skilled talent and substantial resources fortify Sichuan's comprehensive strategy, thereby cementing its pivotal role in propelling China's bioeconomic growth.
Henan Province:
Henan Province distinguishes itself as a beacon of proactive bioeconomic promotion, exemplified through its holistic "Implementation Plan for Promoting the Development of Bio-economy." This multifaceted blueprint introduces a suite of targeted incentives and mechanisms to fuel high-quality bioeconomic expansion.
Henan's approach reverberates with collaboration, enticing regional headquarters and functional institutions of multinational corporations with rewards. Audited and identified entities are eligible for up to 10 million yuan and 5 million yuan, respectively, distributed over three years in proportions of 40%, 30%, and 30%. The province's commitment extends to the construction of bio-industrial parks, further supported by the issuance of government special bonds to facilitate infrastructure projects.
Rent subsidies beckon enterprises renting idle factories for biological industry projects within designated zones. An enticing proposition arrives for enterprises utilizing standardized factory buildings within development zones for production, as rent-free incentives are offered for a specified period. Subsequent long-term use enjoys preferential purchase policies, exemplifying Henan's dedication to sustainable growth.
Hebei Province:
Hebei Province emerges as a pioneering force within China's bioeconomic panorama with the unveiling of the groundbreaking "Blue Book on the Development of Bio-manufacturing Industry." This comprehensive guide, a testament to Hebei's visionary outlook, propels research, and technological advancement within the bioeconomic domain.
Yunnan Province:
The focus on versatile microbial agents for agriculture, food, and feed industries underscores Yunnan's commitment to bolstering its agricultural sector. The Yunnan Provincial Culture Resource Protection and Utilization Center's establishment showcases the province's proactive approach to innovation. Independent biocatalyst development and modern biomanufacturing infrastructure highlight Yunnan's ambition for biotech self-sufficiency. Expanding microalgae applications in health, cosmetics, and feed aligns with market trends.
Yunnan's strategic approach to refining the entire bioeconomy chain, including CMO/CDMO models, demonstrates dedication to bioeconomic growth. Ambitious 2025 goals—over 100 billion RMB bioeconomic output, increased bio-based shares, lower energy use—show Yunnan's commitment to sustainable growth. Leveraging biodiversity, Yunnan's meticulous strategy for a Characteristic Bio-Manufacturing Strain Resource Bank and area centers enhances resource management. This aligns with the province's core strain research and development efforts. These endeavors foster autonomous production of diverse products and integration across sectors, capitalizing on Yunnan's unique resources and technological strength.
Hubei Province:
Hubei Province's bioeconomy strategy targets significant growth in core sectors by 2025. Plans include doubling the scale of bio-medicine, bio-agriculture, bio-medical engineering, and bio-service industries to surpass 650 billion RMB.
The addition of 100 innovation platforms, key labs, and centers supports this expansion. Hubei aims for a 200 billion RMB bio-agriculture output and seeks to establish Wuhan as a global hub for breeding and agricultural biotech. In the realm of biological food, the focus is on innovative technologies and improving nutritional value in fermented foods. Hubei also prioritizes innovative R&D platforms and CDMO services, enhancing the supply chain and integrating systems for effective product development and manufacturing.
Collectively, these provinces and regional hubs intricately weave national-level directives from the 14th Five-Year Bioeconomy Development Plan with bespoke regional strategies. This harmonization creates an incubator for biomanufacturing brilliance, fostering an environment where innovation thrives, research prospers, and the bioeconomy flourishes. The synergistic union of national vision and local ingenuity propels China toward its ambitious goal of becoming a global frontrunner in biomanufacturing and the transformative bioeconomy landscape.
Learn more and download our full report on protein fermentation in China at www.daofoods.com/fermentation