China's central government will spend 10 billion yuan ($1.6 billion) and raise an additional 30 billion yuan ($4.8 billion) from provincial governments to gain a leading position in global biopharma. This strategic investment is part of its Five-Year Plan, aimed at shedding the nation's reputation as a cheap producer of low-quality products. Of the seven industries selected for investment, biotech is one of them. “The government is pouring money to really support innovative work,” says Dan Zhang, CEO of Fountain Medical Development in Beijing, who is reviewing grant proposals for the Ministry of Science and Technology (MOST). “Almost all of the grant money will go to preclinical and clinical studies of truly innovative projects.” MOST vice-chairman Liu Yanhua announced at a bioeconomy meeting in Tianjin in June that the government hopes biotech revenue will exceed 2 trillion yuan ($311 billion) by 2020. Many Western biotechs view China's commitment to innovation as a boon for both sides, as analysts predict that partnerships between China and the West will flourish over the next decade. Whether China's expectations for a meteoric rise will threaten the West's biotech leadership is uncertain. Ingrid Yin, senior analyst for Oppenheimer in New York, believes China must first expand its research infrastructure and attract a talent base before it can develop into a world power in biotech. “It will be a gradual process,” she says.