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China's New Tech-Commerce Policy: What Foreign Founders Need to Know

China has released its first policy document focused on 'invigorating commerce through science and technology.' Here is what foreign founders operating or registering a company in China should understand about the 18 measures and their implications.

China's First 'Tech-Commerce' Policy: Key Takeaways for Foreign Founders

On October 19, 2026, China's State Council Information Office held a press conference to introduce the Opinions on Accelerating the Invigoration of Commerce through Science and Technology (the "Opinions"). The document, jointly issued by the Ministry of Commerce (MOFCOM) and other departments, is China's first comprehensive policy framework themed on "tech-commerce." For foreign founders registering or operating a company in China, the Opinions signal where the government sees opportunities in consumer markets, supply chains, and digital services—and where regulatory support may follow.

What the Policy Covers

According to MOFCOM Assistant Minister Yuan Xiaoming, the Opinions put technological innovation at the center of the entire commerce chain, from production to consumption. The policy proposes 18 specific measures organized around four main areas:

• Technology-enabled upgrading of goods consumption: Promoting flexible manufacturing and personalized customization to better match supply with demand.
• Technology-driven expansion of services consumption: Improving basic services such as housekeeping and catering, expanding upgraded services such as culture, tourism, and sports, and enhancing personalized service quality.
• Technology-smoothing of commerce circulation: Accelerating a special action plan for digital-intelligent supply chains, upgrading wholesale and retail, and building a quality-focused e-commerce ecosystem.
• Technology-shaped future commerce scenarios: Creating and nurturing intelligent, green, and integrated consumption scenarios.

The policy also outlines support in six areas: standards, infrastructure, safety supervision, R&D transformation, talent cultivation, and fiscal and financial measures.

Three Features: 'New,' 'Comprehensive,' and 'Practical'

Yuan described the Opinions as having three defining features: "new," "comprehensive," and "practical."

New: Embracing New Consumption Trends

The policy responds to changing consumer preferences. Yuan cited MOFCOM big data showing that in the first nine months of 2026, sales of smart glasses on key platforms grew by 1.1 times. Technologies such as artificial intelligence (AI), the Internet of Things, and blockchain are increasingly applied in consumption, and the Opinions aim to both stimulate current consumption and foster new business formats for long-term growth.

Comprehensive: Covering the Entire Commerce Chain

The measures span vertically from product R&D and manufacturing to wholesale, logistics, e-commerce, and consumption scenarios. Horizontally, they aim to transform traditional sectors like retail, catering, and housekeeping while also cultivating new models such as commercial intelligent agents and green circular consumption.

Practical: Targeted and Verifiable

The Opinions address specific problems. For example, to improve supply-demand matching, they propose developing flexible manufacturing and promoting on-demand production, and nurturing influential customized brands. To enrich quality services, they call for digital-intelligent transformation of household, medical, elderly care, and childcare services, and expansion of smart education, smart tourism, and smart sports. To improve e-commerce quality, they propose quality e-commerce cultivation actions and enhanced online verification of key products on e-commerce platforms.

'AI + Manufacturing' Initiative: Progress and Next Steps

Wei Wei, Director of the Science and Technology Department at the Ministry of Industry and Information Technology (MIIT), provided an update on the "AI + Manufacturing" special action plan, issued in July 2025 by MIIT and seven other departments including MOFCOM. He noted that China's core AI industry exceeded 1.2 trillion yuan in 2025 (based on estimates). Key progress includes:

• Scenario-driven application: Over 1,000 high-value application scenarios identified across 20 industries such as steel, automotive, and pharmaceuticals; 285 typical application cases released; more than 5,000 enterprises participated in supply-demand matchmaking; AI technology application penetration rate among large-scale manufacturing enterprises exceeded 30%.
• Industrial foundation: Over 500 high-quality datasets and more than 100 industrial intelligent agents promoted in 20 key industrial fields; hundreds of national and industry standards developed, and over 70 international standards led or participated in.
• AI terminal products: A national standard system for intelligent grading of AI terminals has been established, with standards for seven product categories including smartphones, computers, TVs, and glasses. More than 100 products meet assisted-level capability requirements. In the first half of 2026, shipments of various intelligent terminals exceeded 100 million units.
• Enterprises and talent: As of end-June 2026, there were over 6,600 AI enterprises. MIIT has implemented actions to cultivate AI application service providers and build a national base for excellent engineers.
• Industry ecosystem: An open-source AI community (AtomGit) was launched; a 60 billion yuan national AI industry investment fund was established; and ethical review measures for AI were implemented.

Next, MIIT will focus on three areas: strengthening technology supply through mechanisms like "revealing the list and taking the lead," accelerating product renewal (including AI computers, phones, brain-computer interfaces, embodied intelligence, intelligent industrial machine tools, agricultural machinery, and medical devices), and facilitating production-marketing linkages by cultivating quality AI service providers and organizing supply-demand matchmaking activities.

Implications for Foreign Founders

For foreign entrepreneurs, the Opinions and the AI + Manufacturing initiative indicate several practical directions:

• Consumer-facing tech: Smart glasses and other AI-enabled consumer devices are seeing rapid sales growth; foreign companies with relevant products may find a receptive market and policy support for pilot projects.
• Service sector digitalization: The policy encourages digital upgrading of household services, elderly care, childcare, healthcare, education, tourism, and sports. Foreign founders in these areas could explore partnerships or pilot programs aligned with local government initiatives.
• Supply chain and e-commerce: The focus on digital-intelligent supply chains and quality e-commerce suggests opportunities for logistics tech, e-commerce enablement, and quality assurance services.
• Standards and compliance: The development of national standards for AI terminals and ethical review measures means foreign companies should stay informed about evolving compliance requirements.

While the policy does not specify new incentives for foreign investment, it reflects China's broader push to integrate technology into commerce. Foreign founders should monitor local implementation measures and consider how their business plans align with these priorities.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

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