Beijing won’t ditch ‘Made in China 2025’ strategy, which will also benefit foreign companies

By Hu Weijia Source:Global Times Published: 2018/6/5 22:18:39

Some people may hope Beijing will ditch its "Made in China 2025" strategy, but they are headed for disappointment.

The strategy is generating more attention as China tries to promote the development of its high-technology industries to shift the country from being a "world factory" to an advanced industrialized nation by 2025. Some US observers view the strategy as Beijing's action plan to steal US technology and control the world's cutting-edge industries.

One big reason behind the ongoing trade friction between the world's two largest economies is US concern over the "Made in China 2025" strategy. Some people believe that China will have to abandon the strategy under Washington's pressure to end the trade dispute with the US, which is an important trade partner of China.

But this is a simplistic view of China's complex economic situation. The era of cheap labor in China is over. The nation's manufacturing industries are undergoing a significant transition as its labor cost advantage shrinks.

Moving up the value chain and focusing more on high-technology sectors such as robotics and electric cars is China's only way to maintain international competitiveness in the manufacturing industry, which will also help it ensure employment and social stability.

Any attempt by the US - or any other country - to pressure China to abandon the "Made in China 2025" strategy will be in vain. China will spare no effort to protect its core economic interests.

China will definitely pursue its "Made in China 2025" strategy. That won't hurt the interests of foreign companies. Instead, it will offer new opportunities for companies in advanced industries to enhance cooperation with Chinese enterprises.

Some people misunderstand the "Made in China 2025" strategy, which they believe aims to support the country's industrial modernization by replacing foreign technologies with domestic alternatives. However, the strategy does not exclude foreign enterprises. It will not only open up new opportunities offshore as Chinese companies step up investment overseas, but also result in the lowering of internal investment barriers as necessary to improve productivity in domestic high-tech industries.

The world has witnessed opening-up measures announced by China after it launched the "Made in China 2025" strategy in 2015. The new round of opening-up and reforms should not be interrupted by unfounded concerns over the strategy.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn



Posted in: EYE ON ECONOMY

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