Where ‘Made in China 2025’ missed the mark

Beijing-China recalled several major goals to become self-sufficient in technology with his 10-year plan, while promoting unhealthy industrial competition, which spoiled global trade tension, European Chamber of Commerce in China said in a report this week.

When Beijing released its “Made in China 2025” scheme in 2015, it was accompanied by significant international criticism to promote Chinese business at the cost of their foreign counterparts. The country later reduced the initiative, but has doubled on domestic technological development Over the years.

Since releasing the plan, The Business Chamber said that China has crossed its goals to achieve domestic dominance in auto, but the country has not yet reached its goals in the growth rate of aerospace, high-end robot and manufacturing price-addicted growth, cited its research and discussions with the members, the business chamber said. Among the ten strategic areas identified in the report, China only gained technical dominance in ship -making, high -speed rail and electric cars.

China’s goals are generally seen as a direction rather than the actual figure obtained by a specific date. The Made in China 2025 scheme underlined the first ten years that the country called the ‘Multi-Daksha Strategy’ to become a global manufacturing power plant.

The Chamber reported that China’s self-developed airplane, C919, still depends a lot on the US and European parts and although the level of industrial automation is “significantly increased,” this is mainly due to foreign technology. In addition, the growth rate of manufacturing price reached 6.1% in 2024, falling at a rate of 7% in 2015 and more than just half towards the target of 11%.

Jens Escelund, president of the European Union Chamber of Commerce in China, said on Tuesday, “Everyone should be considered lucky that China missed its manufacturing development target.” ,He did not meet his goal, but I really feel that he did amazingly good. ,

Even at that slow pace, China has replaced itself in the last decade to run 29% of the global manufacturing value in the last decade – almost in the United States and Europe, jointly, Escelund said. “Before 2015, many, in many categories China was not a direct contestant of Europe and United States,

In recent years, the US has sought to ban China’s high end technology, and has encouraged advanced manufacturing companies to manufacture factories in the US.

Earlier this week, the US issued exports to the US-based chipmaker Nvidia’s licensing requirements for H20 and AMD MI308 Artificial Intelligence Chips, as well as their counterpart, for China. Before that, Nvidia Said that this new export licensing requirements will result in a quarterly fee of about 5.5 billion dollars. According to Chinese state media, Chipmekar CEO Jensen Huang met with the Chinese Vice Premier in Beijing on Thursday.

The US restrictions have “pushed us to create things that we had earlier thought we had to buy,” Lionel M. Ni said. This is according to the CNBC translation of his Mandarin-language comments on Wednesday.

Ni said that products requiring developed development efforts in the house included chips and equipment, and if the options for restricted items were not available immediately, the university would buy the second best version available.

In addition to thematic schemes, China releases national development priorities every five years. The current 14th Five Year Plan emphasizes support for the digital economy and wraps in December. The later 15th Five Year Plan is to be released next year.

It is not clear to what extent China can be completely self -sufficient in major technical systems in the near period. But local companies have progressed rapidly.

Chinese telecom giant Huawei released a smartphone at the end of 2023, allegedly an advanced chip capable of 5G speed. The company has been on a US blacklist since 2019 and has released its own operating system last year which is allegedly completely different from Google’s Android.

Analysts from Washington, DC, -Bed Think Tank Center for Strategic and International Studies said, “Western Chip Export Control has found some success, in which he has briefly returned China’s developmental efforts at some cost for the United States and Allied firms.” However, he noted that China is only doubled, “potentially unstable American semiconductor ecosystem.”

For example, The Thinktank reported, Huawei’s current generation smartphone, Pura 70 series includes 33 China-Khatte components and only 5 sours from outside China.

Huawei reported an increase of 22% in revenue in 2024 – the fastest growth since 2016 – due to a recovery in the business of its consumer products. The company spent 20.8% of its revenue on research and development last year, above its annual target of over 10%.

The European Union Chamber report states that overall, China’s manufacturers reached the nationwide 1.68% target for spending on research and development.

“Europe needs to keep a tough eye on itself,” Escland said, referring to Huawei’s high R&D expenses. “Is European companies doing which is necessary for technology to be state -of -the -art?”

Dutch semiconductor equipment firm ASML The R&D spent 15.2% of its net sales in 2024, while the ratio of Nvidia was 14.2%.

However, high expenses do not necessarily mean efficiency.

Especially electric car races have inspired a price war, in which most vehicle manufacturers have run a loss in their efforts to reduce the contestants. The event is often called “Neejuan” or “Involution” in China.

“We also need to feel [China’s] Success has not come without problems, “Escland said.” We are looking at a great many industries, it has not been translated into a healthy business. ,

He said that efforts to meet the goals of “Made in China 2025” contributed to exploration, and stated that China’s efforts to transfer the manufacturing price chain to high-ending equipment from Christmas jewelry have also increased global concerns about security risks.

In an annual government work report given in March, Chinese Premier Lee Kuang called for efforts to prevent the invoice, echoing a directive from a high-level Polit Bureau meeting in July last year. Polit Bureau is the second largest cycle of power in the ruling Chinese Communist Party.

Such fierce competition already reduces the effect of slowing down economic growth. Of the 2,825 mainland China-list companies, 20% reported the first loss in 2024 as on Thursday, according to the CNBC analysis of wind information data. The companies that had reported another year loss so far, had shown the stake of the money losing companies last year, the analysis showed the analysis.

In March, China emphasized that it is a priority for the year to promote consumption after focusing on manufacturing in advance. According to the official data accessed through wind information, retail sales growth on the basis of year-on-year since the beginning of 2024 has lagged behind industrial production.

Escelund said that policy makers are also looking for ways to ensure that “a better match between manufacturing production and domestic market can absorb.”

But when asked about the policies that could address the manufacturing overlapping, he said, “We are also eagerly waiting for the expectation.”