What is the "Made in China 2025" plan ?

 China, which has already surpassed Japan as Asia's leading exporter of high-tech products in 2014, is now looking to take the lead from the United States and Germany; With competitive multi-national companies in high value-added products.

The Made in China 2025 plan draws direct inspiration from Germany's "Industry 4.0" plan and is designed to elevate China from "world factory" to "big industrial power", mastering research, innovation and high value-added production.


This "Made in China 2025" redefines all of China's industrial priorities. China wants to be at the forefront of the new industrial revolution linked to digital integration. As the efficiency and quality of Chinese producers are highly uneven, and multiple challenges need to be overcome in a short amount of time, China wants to avoid being squeezed by newly emerging low-cost producers and wants more effectively to cooperate and to compete with advanced industrialized economies.

The Made in China 2025 has clear goals, tools, and sector focus. Its guiding principles are to have manufacturing be innovation-driven, emphasize quality over quantity, achieve green development, optimize the structure of Chinese industry, and nurture human talent.

The plan highlights 10 priority sectors:

1. New advanced information technology;
2. Automated machine tools & robotics;
3. Aerospace and aeronautical equipment;
4. Maritime equipment and high-tech shipping;
5. Modern rail transport equipment; 
6. New-energy vehicles and equipment; 
7. Power equipment; 
8. Agricultural equipment; 
9. New materials; 
10. Biopharma and advanced medical products.

It focuses on the entire manufacturing process and not just innovation.The plan also specifies focus on the countries that together make up the Silk Road initiative.

Multi-national companies will most probably face new challenges with this plan.
A clear goal is to make Chinese companies more competitive across the board, to localize production of components and final products, and to have Chinese firms move up the value-added chain in production and innovation networks, and to achieve much greater international brand recognition.

So is there an impact on the world economy? Are there opportunities in this plan for non-Chinese multi-national companies?

post to be continued...


Sources:

• http://english.gov.cn/2016special/madeinchina2025/
• https://www.csis.org/analysis/made-china-2025
• https://www.theguardian.com/world/
• https://www.lesechos.fr/idees-debats/editos-analyses/