By Annex Asia Publishing
The Made in China 2025 plan, introduced first by Chinese Premier Li Keqiang in April 2015, aims to address some of the new challenges faced by Chinese economy and quoted by president Xi Jinping as the New Normal; the new reality where the the country can not expect the GDP to grow in double digits. The plan is a response to China’s position to competitive environment, where the South East Asian countries are increasingly a more favorable option for cheaper and simpler (quantity-based) manufacturing with low level of added value. Further factor behind the rationale of Made in China 2025 is the shift from emphasis on manufacturing for export and focus on domestic consumption.
In essence, objective of the plan is to change the familiar perception of products with the “Made in China” label known to all from the 1990s and 2000s and associated mainly with low price and questionable quality.
It is not uncommon that the government in China takes up big plans and Made in China 2025 is not an exception. Thus the basic ten-year-plan will not finish in 2025, but continue onwards and aim to achieve significant results for China as a manufacturing power in 2049, the year when the PRC will celebrate its 100th years anniversary.
The main objectives of this plan will include improving the role of innovation, promoting the role of Chinese brands, the use of smart technologies, green and smart technologies, services as well as internationalization of Chinese manufacturing.
Made in China 2025 therefore means a lot of opportunities for both domestic and foreign investment in manufacturing. However, it brings about the vision that cutting corners for profit margins will become a thing of the past in China. Instead, adherence to standards and investment to quality assurance will be a decisive factor in beating your competitors.
SOURCES:
Li Hui, “Made In China 2025: Chinese Manufacturing to get a Makeover”. CKGSB Knowledge. http://knowledge.ckgsb.edu.cn/2015/05/21/policy-and-law/made-in-china-2025-chinese-manufacturing-to-get-a-makeover/
“Made in China 2025 plan unveiled to boost manufacturing”. Xinhua News. http://news.xinhuanet.com/english/2015-05/19/c_134252230.htm
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