Shenzhen Enacts Legislation to Boost Synthetic Biology Industry: Home to Over 100 Companies with Combined Valuation of $5 Billion

9Month1Recently, according to information from the official website of the Shenzhen Municipal People’s Government, another important piece of legislation in an emerging field—“Several Provisions of the Shenzhen Special Economic Zone on Promoting the Innovative Development of the Synthetic Biology Industry” (hereinafter referred to as the “Several Provisions”)—has been approved.Scheduled for10Month1shall officially take effect as of the date.

“Several Provisions” in total32The legislation is structured as a series of articles without chapters or sections, marking another exploratory effort by Shenzhen in legislating for emerging industries. This “targeted” legislative approach aims to safeguard the robust development of synthetic biology, a future-oriented industry.

According to reports, the “Several Provisions” constitute specialized legislation targeting the full-chain development of the synthetic biology industry. By addressing the critical pain points and challenges hindering the growth of Shenzhen’s synthetic biology sector, these provisions provide a legal framework to help Shenzhen seize global opportunities in biotechnology and industrial development, thereby securing its strategic initiative in the synthetic biology industry.

Just as12days ago,8Month20On [specific date], Changde City, Hunan Province, officially released the "Several Provisions of Changde City on Promoting the Development of the Synthetic Biology Manufacturing Industry,"This is China’s first local regulation to promote the development of the synthetic biology manufacturing industry. Shenzhen’s “Several Provisions” has become the second such regulation in the country.

According to the Shenzhen Special Zone Daily, the “Several Provisions” feature four major highlights in their content.

First, promote the translation of technological achievements through source innovation.

Encouraging source innovation is a key driver behind the rapid development of Shenzhen’s synthetic biology industry. The Several Provisions further institutionalize this Shenzhen practice by explicitly stipulating the continuous promotion of the ministry-municipality joint projects under the National Key R&D Program for “Synthetic Biology,” thereby supporting research institutions, higher education institutions, and enterprises in undertaking national strategic scientific and technological tasks.

Simultaneously, the municipal science and technology innovation department is required to launch special support initiatives, organizing and deploying basic research and technological breakthroughs targeting key generic technologies, frontier leading-edge technologies, modern engineering technologies, and disruptive technologies.

Second, propose the establishment of a full-chain service support system for the synthetic biology industry.

The “Several Provisions” emphasize the provision of full-process services to synthetic biology enterprises, covering technology research, achievement transformation, and industrialization. It specifies that the municipal development and reform, science and technology innovation, and industry and information technology departments shall provide subsidies for R&D resource sharing services purchased by synthetic biology enterprises in accordance with their respective responsibilities and requirements. Furthermore, it stipulates that public inspection and testing institutions in the city shall offer preferential rates for product inspection and testing fees incurred by synthetic biology enterprises.

Third, focus on registration and market access to significantly shorten the time-to-market for synthetic biology products.

Pain points such as lengthy product review and approval cycles and relatively slow application promotion have long plagued the development of the synthetic biology industry. To address these issues, the "Several Provisions" implement multiple measures to shorten the market entry timeline for synthetic biology products and broaden their application scenarios and promotion channels.

On one hand, explore new models for cultivating review and technical institutions. Strengthen central-local coordination in areas such as “three-new foods” and new cosmetic ingredients, and establish cooperative platforms in conjunction with relevant national and provincial authorities to jointly cultivate qualified technical review bodies. In fields including new raw materials for health foods, agricultural genetically modified organisms (GMOs), and gene-edited organisms for agricultural use, promote the engagement of capable technical institutions commissioned by relevant national authorities to participate in testing, analysis, and other tasks, thereby providing synthetic biology enterprises with more efficient and convenient review and technical testing services.

On the other hand, efforts should be made to promote the adoption of synthetic biology products. The municipal Department of Industry and Information Technology, in conjunction with the municipal Department of Science and Technology Innovation, shall compile a catalog for the initial procurement of innovative synthetic biology products. The municipal Finance Department shall facilitate the procurement of such products in accordance with the law. Furthermore, the municipal Departments of Industry and Information Technology and Science and Technology Innovation are authorized to develop recommendation catalogs and lists of typical application scenarios, thereby stimulating market demand for synthetic biology products.

The "Several Provisions" further clarify that the municipal government shall advance reforms to the approval system in the field of synthetic biology, promote the separation of technical review from administrative approval, and continuously optimize approval conditions and processes. Support is provided for enterprises and institutions in the synthetic biology sector to apply for designation as pilot units under the city’s joint regulatory mechanism for special biomedical articles at entry and exit points, thereby facilitating customs clearance for eligible special biomedical articles.

Fourth, ensure adequate space for the synthetic biology industry and increase financial support.

In addition to the aforementioned content, the "Several Provisions" further strengthen support for factor guarantees in industrial development. It requires relevant departments to prioritize meeting the industrial space needs of synthetic biology enterprises that have achieved industrial-scale mass production when formulating plans for the supply of construction land. The guiding role of government investment funds should be leveraged to mobilize financial institutions and social capital to increase financing support for early-stage synthetic biology companies, thereby reducing their financing costs.

Shenzhen boasts strong competitiveness in the field of synthetic biology.Statistical data shows that in recent3newly established synthetic biology companies in China this year, with40%Concentrated in Shenzhen.

Shenzhen’s synthetic biology industry is accelerating its cluster development, having cumulatively cultivated, incubated, and introduced start-ups in the field of synthetic biology.117home, with a total valuation of approximately360100 million yuan,A number of high-growth leading enterprises, such as Saiqiao Bio and Sailu Medical, have emerged, while industry giants including Bloomage Biotech and Guangxin Bio have also established their presence.

Currently, Shenzhen's industrial chain enterprises cover technology/Platform services, pharmaceuticals, food and agriculture, personal care and daily chemicals, among other sectors. In terms of production applications, there are Synbio Tech, Shensheng Biotech, Unknown Biotech, Vicky Technology, and Bangtai Biotechnology,Redlin Bio, Meili Nutrition, Langkun Environment, and other enterprises; companies related to technology platforms and instruments and equipment include XtalPi,MGI Tech, BGI Genomics, CytoBridge Biotechnology, Sailu Medical, etc.

Any discussion of Shenzhen’s synthetic biology industry is incomplete without mentioning Guangming District.

Over the past three years, nearly half of the newly established synthetic biology companies in China have settled in Shenzhen, while Guangming has gathered nearly80%biomanufacturing startups. It is reported that Guangming District currently hosts more than130homegrown synthetic biology companies, with a total valuation exceeding400hundred million yuan, valuation10Enterprises with revenue of RMB 100 million (inclusive) or more reached16Home.

Notably,2024Year7In [Month], construction commenced on the National Biomanufacturing Industry Innovation Center (hereinafter referred to as the “National Innovation Center”) in Guangming Science City. This marks China’s first national-level industrial innovation platform in the field of biomanufacturing, with leading enterprises simultaneously accelerating their establishment and operations in the area.

2024Year5Month, World500Guangxin Group, a leading enterprise, expands its presence in Guangming by unveiling the establishment of Guangxin Bio-Intelligent Manufacturing Technology Innovation (Shenzhen) Co., Ltd.2025Year7This month, Huaxi Tang'an Biotechnology (Shenzhen) Co., Ltd., a subsidiary of Bloomage Biotech, the global leader in the hyaluronic acid industry, settled in Guangming and established the world’s first full-industry-chain platform for non-animal-derived heparin.

In addition, Guangming District boasts seven “China’s Firsts” in the field of synthetic biology, including:

1. China's First Major Scientific and Technological Infrastructure for Synthetic Biology;

2. China’s First National Key Laboratory of Quantitative Synthetic Biology;

3. China's First School of Synthetic Biology;

4. The First National Key R&D Program Special Project on Synthetic Biology with Ministry-Municipal Coordination;

5. China's First Synthetic Biology Industry Innovation Alliance;

6. China's First Special Support Policy for the Synthetic Biology Industry;

7. China's First National Biomanufacturing Industry Innovation Center.

These heavyweight innovation platforms and key special projects have been successively established in Shenzhen, providing a solid foundation for the city to seize the commanding heights of synthetic biology technology and industrial innovation.

Behind these achievements,On the one hand, as early as2017years, Shenzhen sowed the first batch of "seeds" for developing the synthetic biology industry,The “Implementation Plan for the Construction of Ten Major Scientific and Technological Infrastructure Projects in Shenzhen” was issued, which proactively planned and systematically deployed a batch of major scientific and technological infrastructure projects, with the Synthetic Biology Research Facility being one of them.

2022Year of Release: "Shenzhen Action Plan for Cultivating and Developing Future Industries ("2022-2025Years)》, which points out that synthetic biology is one of the eight key industries to be prioritized for development in the future.

On the other hand, as a major financial center and hub for venture capital and entrepreneurship in China, Shenzhen’s seed, angel,VC/PE, a full range of funds including M&A funds,Moreover, Shenzhen has also established sectors in biopharmaceuticals, medical devices, and synthetic biology.5Only, Total165An industrial fund with a scale of hundreds of millions of yuan can provide full-cycle financial support for corporate growth.

Meanwhile, Shenzhen has also established a scale15The Shenzhen Synthetic Biology Industry Fund, i.e., the Shenzhen Synthetic Biology Industry Private Equity Investment Fund Partnership (Limited Partnership), with a scale of hundreds of millions of yuan, has been established in Guangming District.

Guangming District Guidance Fund Has Participated in Capital Contribution21Only sub-funds, with total committed capital approaching300hundred million yuan, it has successively established multiple policy-oriented sub-funds and market-driven sub-funds, covering the entire lifecycle of enterprise development from seed and angel stages to venture capital and private equity investment.

The Shenzhen Institute of Advanced Technology and Beijing Yanyi Technology Co., Ltd. have jointly established China’s first synthetic biology industry fund, the “Xingbo Shenghui Synthetic Biology Industry Fund,”Scale2billion yuan, focusing on companies in the synthetic biology sector.