Critics and the truth of “Made in China 2025”
The Chinese government has launched “Made in China 2025”, a state-led industrial strategy that seeks to make China dominant in global high-tech manufacturing. The program aims to use government subsidies, mobilize state-owned enterprises, and pursue intellectual property acquisition to catch up with—and then surpass—Western technological prowess in advanced industries.
However, in the economic realm, critics said that China is distorting global markets by prioritizing political considerations over economic incentives. Its subsidies, they said, skew markets and lead to overproduction and the dumping of cheap products in the global market.
Well, the truth is that China didn’t conceal anything, and there’s no reason that China shouldn’t prepare a strategic plan for the sake of its people.
“Made in China 2025” is a plan to engineer a shift from low-end manufacturing to becoming a high-end producer of goods, transitioning the country’s existing manufacturing infrastructure and labor market towards producing more specialized output, with targeted investments in research and development and an emphasis on technological innovation.
Countries such as Germany and the U.S. have already laid out similar plans.
To add to the point, another purpose of “Made in China 2025” is that China is going to initiate and establish the Fourth Industrial Revolution in China itself and also in the rest of the world.
The three plans or strategies above all serve domestic interests, so why only blame China for making plans?
Industrial upgrade: from “Made in China” to “Chinese Brands”
The core of industrial upgrade is the “new manufacturing” created by China’s manufacturing upgrade, supply chain upgrade and product quality improvement. China’s manufacturing industry is efficient in production and has a complete industrial chain. The manufacturing logic has also evolved from traditional “large-scale production” to “small batch production”, “individual customization” and “flexible production”.
Traditional Chinese manufacturing is mainly carried out in the OEM (Original Equipment Manufacturers) model. With the high increase in brand effect and consumer demand for quality products, the ODM (Original Design Manufacturers) model and the OBM (Original Brand Manufacturers) model have been gradually developed and used, forming an “R&D design, procurement, production and sales” for emerging brands. The C2M (customer-to-manufacturing) model is another emerging flexible manufacturing model that establishes extremely short links between consumers and factories, reducing channel and inventory costs.
Technological innovation continues to empower the upgrade of new Chinese Brands
MOSO has always been supporting international enterprises making inroads into the Chinese market, as well as China’s advanced enterprises seeking global impact, and we will continually support and cooperate with any company that reasonably promotes technologically innovative progress all over the world – this is also MOSO’s vision in the next five years.
The rise of new Chinese Brands is not only the appearance of cultural confidence but also the reason why product and technological innovation promotes market upgrades. For enterprises, in the future, driven by technology, polishing the core of products, strengthening the construction of supply chain system, and reducing operation and management costs, to achieve a win-win situation for both producers and consumers, which will give new domestic products an opportunity in the long-term development and drive Chinese consumption.
The sectors that we are highly aware of include:
- Electric cars and other new energy vehicles
- Next-generation IT and telecommunications
- Advanced robotics and AI
- Agricultural technology
- Aerospace engineering
- New synthetic materials
- Advanced electrical equipment
- Emerging bio-medicine
- High-end rail infrastructure
- High-tech maritime engineering
These sectors are the core of the so-called fourth industrial revolution, which refers to the integration of big data, cloud computing, and other emerging technologies into global manufacturing supply chains.