China 15th Five Year Plan Boosts Quantum Technology Growth
China 15th Five-Year Plan
The 15th Five-Year Plan (2026–2030) positions quantum technology as a key driver of economic growth in China. In a strategic shift from academic research to commercial implementation, the new strategy names quantum technology the leader of seven “future industries” that will drive economic growth. This elevates the sector from laboratory successes to robust commercialization supported by large state investment and tailored regulatory assistance.
Rapidly Growing Market
China's recent market performance shows its quantum ambitions. Quantum computing alone reached RMB 11.56 billion (US$1.61 billion) by 2025, expanding 30% yearly. Companies in the space increased 40% from 93 in 2023 to 153 in 2024.
This surge is due to government resource distribution changes. The 15th Five-Year Plan prioritizes commercialization through government procurement, manufacturing subsidies, and large-scale application deployments over university research grants. Three regional quantum-focused funds received RMB 121.8 billion (US$17.5 billion) from the National Venture Guidance Fund to achieve these targets.
The Three Quantum Tech Pillars
China has three quantum subsectors with different maturity levels:
Quantum communications dominates the business with 60% of revenue. China's 10,000-kilometer Beijing-Shanghai trunk line and 2016 Micius satellite are the world's longest operational quantum backbone and sole quantum communications satellite. Quantum encryption allows ICBC to remotely transport data and make money.
Hardware achievements include the 107-qubit Zuchongzhi 3.2 superconducting processor and 504-qubit Tianyan-504 cluster system. Quantum computing is the fastest-growing segment, anticipated to account for 41% of the quantum market by 2025.
International commercialization of Hanyuan-1 neutral-atom quantum computers began in 2025.
Despite its early commercialization, quantum sensing is utilized in high-tech production. CATL and Gotion High-Tech, battery giants, use quantum sensors to assure manufacturing quality.
Geographic Innovation Clusters
Four geographic hubs with expertise have converged industry:
Hefei, China's "quantum capital," has USTC and Origin Quantum. Superconducting computer manufacturing and advanced R&D remain there.
Beijing: The national standards and policy center, Beijing emphasizes quantum sensing and measurement.
Guangzhou and Shenzhen: In addition to having the first photonic quantum computer production line, Shenzhen and Guangdong prioritize commercial products and large-scale manufacturing.
Shanghai & Yangtze River Delta: The cluster emphasizes financial services and industrial applications due to the region's banks and innovative manufacturing.
Foreign Players' Opportunities and Challenges
Foreign involvement is nuanced in the 15th Five-Year Plan. The amended Foreign Investment Encouraged Catalogue provides reduced corporate tax rates and tariff exemptions for foreign-invested enterprises for quantum computing research and development starting in February 2026.
However, “bifurcation risks” persist. Foreign providers can use healthcare and banking apps, but government and defense sectors are mainly blocked. Western export restrictions on advanced components have promoted Chinese “domestic substitution”.
The supply chain gaps where multinational enterprises can make a difference remain. Chinese expertise in cryogenic control systems, high-end measuring tools, and Helium-3 remains poor. Software and algorithm development allows multinational companies to license technology to Chinese industrial customers without shipping hardware.
Close Window
While domestic “state-supported champions” like China Telecom Quantum Group and QuantumCTek quickly improve, experts warn the window for entering China's quantum sector is shrinking. A major change is that the 15th Five-Year Plan makes quantum a competitive industry necessity rather than just research.
Regional quantum investment funds peak in 2026–2027, giving multinational corporations a crucial opportunity to respond. A market that is swiftly moving to the top of worldwide quantum patent filing and infrastructure rankings may be open to those who can create alliances and navigate the complex regulatory landscape.













