Welcome to the first edition of the Taylor Wessing China Compass, our new quarterly briefing on legal, regulatory and business developments in China. Each edition will combine a Law and Policy Radar covering key regulatory changes, a lead article on a topic of current strategic importance, and further sections on deals and team news of the Taylor Wessing China Group as well as developments to watch.
The 15th Five-Year Plan: What It Means for Foreign Investors
On 12 March 2026, the National People's Congress adopted the Outline of the 15th Five-Year Plan for National Economic and Social Development (2026-2030). The Plan is best understood as a strategic guide rather than a rigid command document: of its 21 key indicators, fewer than 40 percent are binding. On GDP growth, no fixed five-year rate is set; the 2026 Government Work Report targets 4.5 to 5 percent for the current year.
The Plan's defining priority is technological self-reliance. R&D expenditure is to grow by more than 7 percent annually, high-value invention patents are targeted to rise from 16 to over 22 per 10,000 people by 2030, and core digital economy industries are to account for 12.5 percent of GDP, up from 10.5 percent. These targets will intensify competition from domestic players in technology-driven sectors, while also creating selective opportunities for foreign companies whose expertise aligns with China's own development agenda.
On openness, the Plan commits to stronger intellectual property protection, fairer competition rules and expanded market access in a number of sectors. Foreign investors should read these commitments alongside the Plan's equally strong emphasis on technological self-sufficiency: China remains open, but increasingly on its own terms.
In This Edition
This edition's lead article examines
deep localization in China, exploring the regulatory and procurement pressures driving localization, including the new Made in China procurement rules effective 1 January 2026, and the legal structuring options available to foreign investors on R&D, IP and technology capitalization. We hope you find the Compass useful and look forward to your feedback.
