China unveils new strategy to boost tech dominance
Chinese authorities are planning a new initiative, modeled after "Made in China 2025," which aims to boost the production of technologically advanced goods, such as chip-making equipment, according to Bloomberg sources. The strategy aims to strengthen Beijing's position as a global powerhouse.
"President Xi Jinping’s government is considering a new version of its master plan to boost production of high-end technological goods, according to people familiar with the matter, signaling its intention to keep a firm grip on manufacturing as President Donald Trump looks to bring more factories back to the US.," people familiar with the matter told Bloomberg. This indicates that China intends to maintain strict control over the manufacturing sector. It is noted that the name of the strategy will differ from the previous one.
China is preparing a new plan to position Beijing as a hegemon
The flagship initiative endorsed by Xi Jinping himself, "Made in China," is set to follow the 2015 strategy. This strategy for the next decade will emphasize technologies related to chip production. Bloomberg reports that decision-makers in China are first working on a 5-year plan set to take effect in 2026. Its goal is to maintain the industry's share of China's GDP at a stable level.
The assumptions of the 5-year plan are to be published during the annual parliamentary session in March 2026. The industrial strategy, however, could be revealed at any time, Bloomberg reports. The Chinese National Development and Reform Commission (NDRC) has not commented on the matter.
Chinese leaders emphasize the need to increase consumption to avoid a deflationary spiral and to compensate for the expected drop in exports due to tariffs. In March, China's Premier Li Qiang stated that "vigorously boosting consumption" is a priority for his government this year.
"We need more manufacturing, they need more consumption. So there is a chance to rebalance together so we’ll see if that’s possible," Xi said during a visit to a ball bearing factory in Henan Province in May.
Xi's government published the "Made in China 2025" plan in 2015. The strategy aimed to make China a leader in the production of electric vehicles, passenger aircraft, semiconductors, and robots, among other things. The State Council, China's equivalent of a government body, set the goal of making China an industrial power by 2035 and a "major industrial power" by 2049, which is the centennial of the founding of the People's Republic of China.
