Made in China 2025
[6] 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.
[8] 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.
"[20] Alan Wheatley of British think tank Chatham House indicated, in 2018, that a broad and growing Chinese middle class is necessary for the country's economic and political stability.
[22] The key objective of the Made in China 2025 program is, in a world which it views as increasingly dominated by U.S.-China competition, to identify key technologies, such as AI, 5G, aerospace, semiconductors, electric vehicles and biotech, indigenize those technologies with the help of national champions, secure market share domestically within China, and ultimately capture foreign markets globally.
[28]: 116 For better implementation of the policies the Chinese Communist Party also implemented 5 strategic initiatives[29] 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.
He commented that while it does not make sense from a purely economic perspective, Chinese policymakers have "other considerations" when implementing their industrial policy such as Made in China 2025.
[41] In October 2024, Bloomberg published a series of articles underscoring China’s steady strides in positioning itself as a global leader in future-focused industries, despite more than six years of U.S. tariffs, export controls, and financial sanctions.
[17][42][43] Bloomberg's reporting raises concerns for the U.S., suggesting that policies intended to contain China's rise may inadvertently isolate the U.S. and negatively impact its businesses and consumers.
Adam Posen, president of the Peterson Institute for International Economics and a researcher for various governments and central banks, cautions that “China’s technological rise will not be stymied, and might not even be slowed, by U.S. restrictions,” except for those “draconian measures” that could simultaneously hinder innovation in the U.S. and globally.
[47] In a report they have written that the MIC 2025 initiative distorts the market, and that market-based innovation provides a better way to pass through middle-income status than industrial policies.
Jörg Wuttke, president of the chamber, said: "Very often these major plans, with lots of money, where government bureaucrats decide who's the winner and who's the loser, end up in tears.
[53][54] At the start of the 2010 decade, United States policy makers began to make defensive adjustments against China's growing position in the digital world.
The United States has inserted themselves into the digital world by increasing their own investments in their research and development fields and also banning the use of certain Chinese-made technology inside universities and other sites of academia.
Researchers believe the defensive measures being taken are meant to yield the rapid growth of China to allow time for the United States strategy to take place.
However, the unique intensity around Chinese policy decisions in recent years have proven to give a voice to a growing wariness about their future agenda.
[58][59] The U.S. began individual investigations over Chinese companies participating in the MIC 2025 plan, such as Fujian Jinhua Integrated Circuit, based on concerns over technology theft and national security.
