According to the Council, China’s ten-year plan is really about turning China into a leading manufacturing power, heralding a new era in the country’s long-term strategy to become the world’s leading technology leader. The slogan “Make in China 2025” has become a central part of the state-led industrial policy that China relies on. Companies that receive state subsidies are to acquire intellectual property rights in order to catch up with and eventually take over the leading Western technology companies. In 2015, China’s government launched a plan to modernize its high-tech manufacturing sector in ten key areas.
The Chinese government is trying to transform its economy from an economy that relies heavily on foreign firms “merchandise as its main source of revenue to an economy that invents the goods it makes.
While securing natural resources is often the foundation of China’s foreign policy, shifting leading-edge technology production to China must drive its industrial policy. Yet the government seems to be creating an incentive for multinational companies to settle in China, to allow China to catch up at some point and displace the US as the world’s most advanced economy. According to the New York Times, “China’s Ministry of Science and Technology requires that all technology used in products sold through its government be developed outside China, which would force multinationals to settle in a country where intellectual property is notoriously unsafe.
When President Xi said that China’s goal was to master its own technology, the fear seemed to be so great that Washington believes that the US is facing a serious threat to its ability to lead the way in high-tech innovation. The strategy I will describe in the following pages has caused great concern among multinationals and their executives, and has led them to rethink their strategies in one of two directions.
The US is concerned that its rivals are rapidly trying to overtake it in the use of advanced technologies, while China is still lagging far behind in terms of global competitiveness. As shown in Table 1, China ranks 34-27 on the World Economic Forum’s list of the world’s top countries – ranking it at the top for the next 20 years, while the US holds the top spot. China 2025 makes China the world’s number one high-tech innovation destination and I believe that this poses a significant threat to the EU’s’ global hegemony ‘, according to a recent report by the International Monetary Fund.
If you’re still not convinced that China is serious about artificial intelligence, remember that Xi Jinping did not mention AI in his opening speech to the Chinese Communist Party Congress last year. China 2025 is the world’s leading target for high-tech innovation and Beijing expects the industry to grow tenfold in the next three years alone. It calls for huge investment in artificial intelligence, part of Beijing’s plan to reposition itself as the industrial superpower of the future. China has accounted for more than half of global investment in artificial intelligence over the past five years, it says.
Businesses and governments around the world are confident that 2025 will have a dramatic impact on world trade. Make in China 2025 is a 10-year industrial development plan, and the 2025 initiative is an idea of President Xi Jinping and Premier Li Keqiang. In an interview on November 3, 2017, the Chinese Minister of Industry and Information Technology, Geng Shuang, said: “Make inChina, make it China.
Removing barriers to trade and investment would stimulate innovation, boost competition with China, and increase economic efficiency. However, many US interest groups are concerned that China’s efforts to promote the development of domestic innovations and technologies to eliminate intellectual property (IP) protection for US, US, and IP-intensive companies could have negative effects on U, S, and IP-intensive companies. The Chinese government’s commitment to building confidence in its economic model has given China’s leaders an opportunity to bolster their business community’s confidence in China as a global technology leader.
This growth increases the pressure to protect intellectual property and, in some cases, to conduct ethical research, particularly in the areas of human rights, environmental protection and the environment.
The rapid rise of Chinese science and technology is a well-known technological success story. According to a report by the Chinese Academy of Sciences, China, which is evolving from a global factory into one of its technology powers, has developed a series of master plans, promoted patenting, pumped money into research and development, sent its students to the world’s leading universities and research institutes, and taken steps to transform the entire science, technology, and innovation system.
The Made in China 2025 Plan, is the country’s roadmap and financing instrument that will modernize China’s manufacturing base from low-tech manufacturing to the rapidly evolving ten high-tech industries, including robotics, artificial intelligence, biotechnology, medical technology, and advanced manufacturing. China is emerging as an international challenger in the fast-growing high-tech sector, according to the report.
