The new generation information technology industry is the foremost among the seven strategic emerging industries determined by the State Council. It is an industry centered around the development of next-generation information networks, information technology services, electronic core industries, network information security products and services, and artificial intelligence, among other fields related to new generation information technology.

In the past decade (2012-2021), the new generation information technology industry has made significant progress. As a key field of technological innovation, it has shown characteristics such as continuous growth in industry scale and enhanced innovation capabilities, along with the deepening and broadening integration with various industries and fields.

Industries such as big data, cloud computing, and blockchain have seen continuous expansion in scale. Among them, software business revenue has grown from 2.5 trillion yuan ($375 billion) in 2012 to 9.5 trillion yuan ($1.4 trillion) in 2021, with an average annual growth rate of 16.1 percent, nearly double the growth rate of China's GDP during the same period. The cloud computing industry has maintained a strong development momentum in recent years, with an annual growth rate exceeding 30 percent, making it one of the fastest-growing markets globally. In 2021, the scale of the big data industry exceeded 1.3 trillion yuan ($195 billion), with a compound growth rate of 28 percent. In the same year, the national blockchain industry reached a scale of 6.5 billion yuan ($975 million), representing a 30 percent year-on-year growth.

Leading enterprises such as Huawei, UFIDA, Kirin, and Dameng have continuously led major technological breakthroughs. At the same time, a large number of unicorn enterprises have been nurtured, making outstanding contributions in terms of technological breakthroughs in specific areas and driving the competitiveness of distributed databases, industrial internet platforms, intelligent voice, and other segments in the global market.

With the deep implementation of the strategies of building a network powerhouse and a manufacturing powerhouse, the integration and innovation between the new generation information technology and the manufacturing industry have accelerated, becoming an important driving force for the digital transformation and enhancement of the core competitiveness of the manufacturing industry.

In 2021, the National Development and Reform Commission and the Ministry of Commerce released the 2020 edition of the "Catalogue of Encouraged Industries for Foreign Investment" further encouraging foreign investment in the fields of artificial intelligence and integrated circuits. Entries such as ventilators, ECMO, AI-assisted medical devices, blockchain technology development, online medical services, and online office platforms were added or modified. Foreign investors will benefit from preferential policies, such as tariff exemptions on imported equipment, preferential land prices, relaxed land use regulations, and reduced corporate income tax.