Korean companies will find wider openings in China in advanced materials, components and equipment, as well as in inland markets in the central and western regions, during Beijing's 15th Five-Year Plan covering 2026 to 2030, according to a new analysis.
The Korea Trade-Investment Promotion Agency, or KOTRA, released a report on the 20th titled "China's Future Industry Landscape Through the 15th Five-Year Plan and Its Implications," which examined future industry policy initiatives of China's central government and 31 provincial-level governments and laid out opportunities worth watching from the perspective of Korean firms.
China draws up a medium- and long-term blueprint for economic and social development every five years. The 15th Five-Year Plan will serve as the main compass for the country's industrial policy from this year through 2030.
Drawing on central government policies and those of 31 provinces and municipalities, the report analyzed regional development patterns across seven strategic future sectors: artificial intelligence, integrated circuits, the low-altitude economy, biopharmaceuticals and advanced medical devices, hydrogen and nuclear fusion energy, brain-computer interfaces, and commercial aerospace.
For emerging industries already on track, such as integrated circuits and biopharmaceuticals, the Chinese government plans to pursue technological upgrading and market expansion. For early-stage industries such as hydrogen and nuclear fusion energy, it will focus on securing core technologies and building markets. By region, Beijing and Shanghai are leading core technology development, while Guangdong, Jiangsu and Zhejiang are concentrating on manufacturing and commercialization. Central and western hubs including Anhui, Sichuan, Hubei and Chongqing plan to expand pilot projects and industrialization of future industries on the back of their existing manufacturing infrastructure.
KOTRA said exports of commodity materials, components and equipment to China could decline as the country raises its localization rate, but demand will continue in higher-value areas where Korea holds a technological edge, such as advanced equipment, core components and high-performance materials. As the future industry ecosystem spreads rapidly from the coastal areas to the inland central and western regions, the agency added, companies entering the market should build differentiated strategies matched to the industries each region specializes in.
"This report brings together the 15th Five-Year Plans of China's central government and its 31 provinces and municipalities, and focuses on identifying where Korean companies can enter the market based on the direction of future industry development and each region's areas of specialization," said Jang Sang-hae, head of KOTRA's China regional headquarters. "China remains our largest export market, so beyond publishing this report, we will do our utmost to help Korean companies seize these opportunities and improve their results in the Chinese market."