China’s Technology Services Industry Enters Golden Development Period Driven by Policy and Innovation

Against the backdrop of the 15th Five-Year Plan’s focus on nurturing new quality productive forces, China’s technology services industry is emerging as a core hub integrating technological and industrial innovation. Industry insiders believe that with the continuous implementation of supportive policies and the accelerated penetration of AI and other new technologies, the industry is ushering in a "window of opportunity" with broad development space.

Driven by both policy guidance and market demand, the technology services industry, as an important emerging industry, has maintained a sound development momentum. Improved top-level design has laid a solid foundation for its growth, with the issuance of documents such as the Implementation Opinions on Accelerating the High-Quality Development of Technology Services and the Measures for the Administration of Technology Enterprise Incubators, which facilitate the transformation of scientific and technological achievements.

Policy dividends have boosted the vitality of the technology market. Du Guangda, Deputy Director of the Department of Science and Technology of the Ministry of Industry and Information Technology, recently stated that in 2025, the number of registered technology contracts in China reached 1.04 million, exceeding 1 million for the first time, with a total turnover of 7.6 trillion yuan, an increase of 10.8%, according to Xinhua News Agency.

Chen Jiande, Partner in Charge of Technology, Media, Entertainment and Telecommunications Industry at KPMG China, noted that the double-digit growth in technology contract turnover reflects the robust development of the technology services industry, which is expected to form a diverse and comprehensive service network during the 15th Five-Year Plan period. AI is bringing new opportunities for the industry’s transformation. Jia Kang, Founding Dean of the China New Supply Economics Research Institute, suggested seizing the opportunity of the "intelligent economy" to empower service model innovation with AI.

Tech finance, as one of the ten key areas of the technology services industry, is being strengthened at both central and local levels. In December 2025, the National Venture Capital Guidance Fund was officially launched, expected to form an investment scale of over 1 trillion yuan, focusing on original and disruptive technological innovations, according to the Chinese government website. Bai Jingyu, Director of the Department of Innovation and High-Tech Development of the National Development and Reform Commission, emphasized its role in supporting strategic emerging industries.

At the local level, Chengdu recently issued a new version of the Measures for the Administration of Science and Technology Finance Subsidies in Chengdu, including AI OPCs, pilot test platforms and new R&D institutions into the subsidy system. Looking ahead, Yang Tao, Deputy Director of the National Finance and Development Laboratory, suggested building a "incentive-compatible" tech finance mechanism to better connect financial supply and enterprise demand, fueling the industry’s sustainable development.