China Rolls Out Action Plan to Promote Entrepreneurship and Specialized Startup Models

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The Chinese government has introduced a comprehensive action plan to promote distinctive entrepreneurship models and provide targeted support to help startups find their market niche, according to a notice made public on June 11 by four government departments including the Ministry of Human Resources and Social Security.

By 2028, the policy system supporting specialized entrepreneurship will undergo steady improvements, and the startup ecosystem will be further optimized, according to the official notice published on the State Council website. The plan aims to better leverage four distinct entrepreneurship models linking startups with scientific and technological achievements, industrial development, vocational skills, and livelihood needs to create more employment opportunities across the country.

Under the science and technology track, measures include supporting researchers at universities, research institutes, and public institutions to launch technology companies, including by taking leave from their posts. A regular mechanism will be established to match research output with market demand, helping to bridge the gap between laboratory discoveries and commercial applications.

For the industrial development model, the action plan aims to build better support systems for promising small and medium-sized enterprises. It encourages rural areas to develop supply-chain and local specialty industries, tapping into regional advantages to foster economic growth in less developed regions. The plan also calls on migrant workers with business experience to return to their hometowns, draw on local resources, and start ventures there, contributing to rural revitalization efforts.

The vocational skills component includes tiered programs designed to help build entrepreneurial capabilities and cultivate a generation of skilled founders. Standardized training programs for recognized labor brands will also be implemented, ensuring that workers across different sectors have access to quality skill development opportunities.

The plan proposes launching more services tailored for the elderly and children, addressing the growing demand for care services in an aging society. Entrepreneurs are encouraged to meet demand for caring, nursing, and at-home services, and to open community workshops, convenience stores, and fresh-food markets that serve local neighborhoods.

This coordinated effort across four government departments reflects China's broader strategy to stimulate grassroots innovation and entrepreneurship as a driver of economic growth and employment. By linking entrepreneurship directly with pressing social needs such as elderly care and community services, the plan seeks to create sustainable businesses that address real market demands while generating jobs.

The action plan is part of China's ongoing efforts to foster a more dynamic business environment and strengthen the private sector's role in economic development. It aligns with the country's broader priorities of promoting high-quality development and achieving more balanced regional growth through market-based mechanisms and targeted policy support.

Sources: gov.cn/SCIO

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