"Made in China 2025"
"Made in China 2025" is an initiative to comprehensively upgrade the Chinese industry. The initiative draws direct inspiration from Germany's "Industry 4.0" plan. However, the Chinese effort is far broader, as the efficiency and quality of Chinese producers are highly uneven. The plan was published by the Ministry of Industry and Information Technology (MIIT) in May 2015.
China's State Council has recently unveiled the national plan, which was authorized by Premier Li Keqiang. "Made in China 2025" is the first 10-year action plan of two following Five Year Plans designed to transform China from a manufacturing giant into a world manufacturing power. The related Chinese slogan is “China needs to grow from big to strong”.
The “Made in China 2025” strategy thus is a ten year target plan, which identifies nine tasks to be strengthened by Chinese national, provincial and local governments and Chinese state-owned enterprises.
Nine goals as priority
- Improving manufacturing innovation
- Integrating information technology and industry
- Strengthening the industrial base
- Fostering Chinese brands
- Enforcing green manufacturing
- Promoting breakthroughs in 10 key sectors
- Advancing restructuring of the manufacturing sector
- Promoting service-oriented manufacturing and manufacturing-related service industries
- Internationalizing manufacturing.
The targeted breakthroughs in ten key industry sectors are important for foreign-invested enterprises, because they can expect additional governmental support for machine and equipment sales in those areas.
These are the ten key sectors mentioned:
- New information technology
- Numerical control machine tools and robotics
- Aerospace equipment
- Ocean engineering equipment and high-tech ships
- Railway equipment
- Energy saving and new energy vehicles
- Power equipment
- New materials
- Biological medicine and medical devices
- Agricultural machinery
This ten year strategic plan bears opportunities and challenges for foreign enterprises. In terms of the challenges, it is a clear goal to make Chinese companies more competitive across the board, to localize production of components and final products, to have Chinese firms move up the value-added chain in production and innovation networks, and to achieve much greater international brand recognition. Moreover, the plan calls for Chinese firms to raise their efforts to invest abroad and, by doing this, to become more familiar with overseas cultures and markets.
Daniel Yoo, Chief Representative of VDMA Shanghai Representative Office, expects an even stronger competitive environment for VDMA-members in future in China. VDMA-members with production site, should be aware of above-mentioned developments and engage their network to local governments in China in order to identify opportunities and risks. VDMA-members without production in China should look into new customer areas for further development of sales in China.
The national government plans to focus on five major projects in order to fulfill „Made in China 2025“. These projects include the establishment of a manufacturing innovation center and assigned model units for intelligent manufacturing. More details should be published by end of the year 2015.
China Daily states Mr. Li Beiguang (Deputy Head of MIIT planning division) saying that “to promote manufacturing and national competitiveness, it is important to mobilize every conceivable element to stimulate innovation rather than simply support a single industry. This shall be fulfilled by spanning in the whole manufacturing industry, applying advanced ideas from countries like Germany, Japan and the United States. Through this engagement, China makes the effort to move from a manufacturer of quantity to one of quality“.
June 18, 2015
VDMA Shanghai Representative Office
Mr. Daniel Yoo, Chief Representative
Source of the image : VDMA Shanghai Office