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Made in China 2025

Saturday, 19 April 2025 - 11:00 am (CET/MEZ) Berlin | Author/Destination: Asia / Asien
Category/Kategorie: General Reading Time:  5 minutes

🔊 Listen to this Post Made in China 2025 (MIC25, MIC 2025, or MIC2025) is a national strategic plan and industrial policy to further develop the manufacturing sector of the People’s Republic of China, signed by Chinese Premier Li Keqiang in May 2015. As part of the thirteenth and fourteenth five-year plans, China aims to move away from being the “world’s factory”—a producer of cheap low-tech goods facilitated by lower labour costs and supply chain advantages. The industrial policy aims to upgrade the manufacturing capabilities of Chinese industries, growing from labor-intensive workshops into a more technology-intensive powerhouse with more value added.

Made in China 2025’s goals include increasing the Chinese-domestic content of core materials to 40 percent by 2020 and 70 percent by 2025. To help achieve independence from foreign suppliers, the initiative encourages increased production in high-tech products and services, with its semiconductor industry central to the industrial plan, partly because advances in chip technology may “lead to breakthroughs in other areas of technology, handing the advantage to whoever has the best chips – an advantage that currently is out of Beijing’s reach.”

Since 2018, following a backlash from the United States and Europe, the phrase “MIC 2025” has been de-emphasized in government and other official communications, while the program remains in place. The Chinese government continues to invest heavily in identified technologies. In 2018, the Chinese government committed to investing roughly US$300 billion into achieving the industrial plan. In the wake of the COVID-19 pandemic, at least an additional $1.4& trillion was also invested into MIC 2025 initiatives. Given China’s current middle income country status, the practicality of its disproportionate expenditure on pioneering new technologies has been called into question. In 2024, the majority of MIC 2025’s goals were considered to be achieved, despite U.S. efforts to curb the program. To achieve the stated goals, a number of specific policies have been implemented, including:

• High-tech companies are subject to reduced taxation rates.
• Incentivization of mergers and acquisitions of foreign technology companies
• Increased R&D funding by large manufacturing enterprises
• Direct state-funding of R&D
• Roadmap stating specific targets for factors such as R&D spending share, productivity, digitization and environmental protection.

Policy support for Made in China 2025 has also included government guidance funds, national laboratories, and state funded incentivization for research grants.

The Chinese Communist Party also implemented 5 strategic initiatives:

1. Building Research and Development Centers across China (40 to be built by 2025)
2. Development of High-End Projects across all of the key industries
3. Sustainable production and worldwide leading green manufacturing practices
4. Smart Manufacturing incl. robotics and digitalization
5. New materials production to be less dependent

Industries integral to MIC 2025 include aerospace, biotech, information technology, smart manufacturing, maritime engineering, advanced rail, electric vehicles, electrical equipment, new materials, biomedicine, agricultural machinery and equipment, pharmaceuticals, and robotics manufacturing, many of which have been dominated by foreign companies. China views revenue streams in these areas as lucrative and important to China’s efforts to establish a high-tech and high-value economy. MIC 2025 emphasizes green and sustainable production in these areas. MIC 2025 lists the following 10 key industries that the Chinese government targets for becoming a world leader.

1. Information technology
2. Robotics
3. Green energy and green vehicles
4. Aerospace equipment
5. Ocean engineering and high tech ships
6. Railway equipment
7. Power equipment
8. New materials
9. Medicine and medical devices
10. Agriculture machinery

Premier Li has indicated advanced standards in industries are absolutely essential to foster innovation and eliminate bottlenecks in industrial development. China has a growing middle class who are demanding higher quality goods and services. Compared with overseas competition, the quality and innovation of Chinese goods have not caught up. Premier Li talked about the quality revolution. This revolves around entrepreneurship and craftsmanship. It will involve embracing a culture of continuous innovations and refinement in quality of goods produced.

Read more on Wikipedia Made in China 2025 (Smart Traveler App by U.S. Department of State - Weather report by weather.com - Global Passport Power Rank - Travel Risk Map - Democracy Index - GDP according to IMF, UN, and World Bank - Global Competitiveness Report - Corruption Perceptions Index - Press Freedom Index - World Justice Project - Rule of Law Index - UN Human Development Index - Global Peace Index - Travel & Tourism Competitiveness Index). Photos by Wikimedia Commons. If you have a suggestion, critique, review or comment to this blog entry, we are looking forward to receive your e-mail at comment@wingsch.net. Please name the headline of the blog post to which your e-mail refers to in the subject line.