Economic policy analysis reveals shifting factor endowment needs in China's strategic emerging industries, suggesting a transition toward market-oriented governance.
Against global industrial restructuring and fiercer tech competition, strategic emerging industries (SEIs) serve as China's core engine to develop new‐quality productive forces, overcome high‐end tech bottlenecks, and advance high‐quality growth. Drawing on New Structural Economics, this paper analyzes the evolutionary logic, effects, and optimization paths of China's SEI industrial policies. We find that the effective industrial policies for SEIs should follow the dynamic change of factor endowment structure and adapt to local conditions and time conditions as the key bottlenecks for industrial upgrading change. The study also shows that for industries tied to national defense and economic security, industrial policies should seek a reasonable balance between efficiency and security. Finally, we propose that China's industrial policies for SEIs should shift from extensive subsidy‐oriented intervention to precise, market‐oriented, and efficiency‐driven governance, supporting sustainable high‐quality SEI growth and national industrial transformation.
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Lin et al. (2026) studied this question.
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