China Manufacturing 2025 is the first 10-year plan to realize the Manufacturing Canyon Strategy proposed by former Chinese Prime Minister Lee Kuan Yew.
The aim of this plan is to bring China into the global manufacturing canyon between 2015 and 2025.
This plan was initially announced, attracted wide attention, and was considered an important means to realize the modernization of China's economic structure.
The Chinese government, in order to achieve this goal, has made it clear that it will wage a battle that will not be allowed to be lost for 10 years.
However, as doubts from outside and international pressure increase, the propaganda of this plan has gradually been restrained, but the plan itself has not been interrupted, but is continuing in another form.
Under the overall framework of this strategy, China aims to transform from a traditional low-load value industry to a high-load value, high-technology-containing sector through technological innovation.
The plan focuses on 10 important areas such as information technology, robots, aerospace, new energy and new materials.
These areas are considered to be the core of the world's fourth industrial revolution and are directly linked to future economic leadership.
To achieve this goal, the Chinese government aims to set a series of important performance indicators, reduce dependence on foreign technology, and establish a leading position in high-tech manufacturing.
The goal of the China Manufacturing 2025 strategy is not new to China.
In fact, this plan is located on the extension line of China's long-term industrial policy.
China's industrial policy aims to promote domestic economic growth through the development of core technology and maintain the legitimacy of the Chinese Communist Party regime.
Mr. Evan Fei-gen Baum, a researcher on China issues, said that Chinese leaders, from Mao Zedong to Xi Jinping, have consistently emphasized the need to develop domestic scientific and technological capabilities and to position science and technology as an important source of national power.
Looking back at history, the economic reform and liberation initiated by Mr. Tong in 1978 positioned the modernization of science and technology as an important task.
Also, the 2006 self-managed innovation strategy by the former East China Company became a direct stepping stone to China Manufacturing 2025.
The strategic goal of the modern-day East was to break the over-dependence on foreign technology, reduce the dependence from 60% in 2006 to 30% by 2050, and become a world leader in science and technology.
China Manufacturing 2025 will continue this goal and policy and further evolve.
China Manufacturing 2025 aims to not only pursue the world's leading technology, but also gain leadership in certain fields.
This ambitious goal has attracted great interest from the international community, especially Western countries.
There are increasing concerns, especially about intellectual property protection and technology transfer issues.
After 2018, the Chinese government began to control the promotion of this slogan to mitigate sensitive reactions from outside.
In practice, this strategy has been incorporated into other policy frameworks through new expressions such as new output productivity.
New output power is a new concept proposed by the Chinese government in recent years.
In September 2022, Xi Jinping visited the National Flu Negotiations, and he drew attention by studying the term twice.
Initially, many economists were confused about its specific meaning, but later the Chinese Central Television defined it as, new technology, new model, new industry, new business model, new field, new race, new primordial force, new advantage.
This expression may sound novel at first glance, but in fact, it is merely a re-transmission of the traditional policy of China Manufacturing 2025 innovation goal.
This can be seen as a way of meeting the tough challenges faced by traditional manufacturing.
In recent years, China's overall manufacturing performance has not been very good.
According to the National Bureau of Statistics, between April and August 2023, China's manufacturing and purchasing index fell below the tipping point in many months.
A PMI above 50 indicates an expansion of manufacturing activity, and below 50 indicates a decrease.
This June's PMI, down to 49.4, further highlighted the manufacturing industry's low confidence.
In particular, SMEs in small enterprises face greater management pressure compared with large enterprises, which are faced with a long-term downturn in the business cycle.
This situation casts a dark shadow on the future of the entire manufacturing sector.
The situation on the export market has not improved either.
According to data from the Chinese Customs General Bureau, the export growth rate in July this year has reached its lowest level in the past three months, further worsening concerns about the future of manufacturing.
The economic recovery after the end of the novel coronavirus infection has been a disappointment, with problems such as real estate equipment and high youth unemployment rates holding back consumption and spending.
Furthermore, the non-manufacturing sectors such as service, tourism, transportation have not shown the expected recovery.
The international environment is also a major burden for manufacturing.
The Western countries are tightening trade restrictions and investigations into China, which have a significant impact on export-oriented manufacturing activities.
Furthermore, as global supply chain risk avoidance progresses, capital outflows from China are accelerating, giving further blow to the long-term development of manufacturing.
In addition, the reduction in population bonuses and the rise in labor costs are also reducing the cost advantage of Chinese manufacturing.
In the face of the intersection of domestic and external pressures, manufacturing faces many uncertainties not only at present but also in the future industrial transformation.
The Chinese government has invested huge amounts of money 10 years ago to support high-tech fields like new energy, robots, semiconductors, nanotechnology, etc.
In some important technological areas, we are still dependent on other countries, and technological barriers still exist.
Furthermore, due to the intensification of global science and technology competition, the space for Chinese companies to survive in the international market is becoming increasingly narrow.
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