http://www.jljgroup.com/uploads/JLJ_Newsletter/April11/5YearPlan.jpgof China's 12th Five-Year Plan" />The 12th Five-Year Plan, the primary planning guideline for China's economic and social development for 2011-2015, was announced on March 16th, 2011. The plan aims to have a 7 percent GDP growth annually during the next five years to allow a steady economy development, and encourage domestic consumption, innovation, and environmental protection.

When compared to previous five-year plans, the 12th plan serves as an major indicator of upcoming opportunities for both foreign and domestic companies.

The 12th five-year plan main points include:

• Restructure manufacturing – Continuing China's move up the value chain, emphasis is given to advanced equipment manufacturing, R&D, and system integration, as well as to promoting consolidation and supporting the growth of SMEs

• 7 strategic industries identified – The government will prioritize the development of energy saving and environmental protection, next generation IT, biotech, high-end equipment, new energy, advanced materials, and new energy vehicles; these industries will receive special industrial development funds, grants, loans, and various tax incentives

• Develop energy resources & production – China will continue its diversification of energy sources, including renewable/clean energy and nuclear development in Coastal and Central regions; the goal is to improve energy processing, transformation, and distribution

• Infrastructure and ocean-related development – The government will upgrade transportation and information infrastructure as well as promote ocean-related industries such as deep sea oil and gas and marine biopharmaceuticals

• Promote service sector – Raising proportion of service sector, deepening industry specialization, and promoting service scale, brand and operation through network

Overall, the government aims to continue China's transformation from a low-tech manufacturing economy to a high-tech & high value-added innovation-based economy.

Supplementing the overall 12th Five-Year Plan, each industry will be issued its own specific Five-Year Plan. Foreign companies seeking to take advantage of these emerging opportunities are advised to first consult a professional service provider to better understand their specific field and to determine how best to enter or grow.