If China's manufacturing becomes stronger, will it stop importing from foreign countries?


  Some foreign media have expressed concerns that "Made in China 2025" aims to replace foreign technologies and products with Chinese ones in high-end industries, thereby enhancing the global competitiveness of Chinese high-tech companies.

  Why develop our own core technologies in high-end industries? Is it really about replacing foreign technologies? To address these questions, a reporter interviewed government officials and industry experts.

  It's impossible to replace all foreign-made products.

  "Some foreign media believe that 'Made in China 2025' is about import substitution, which is a misreading and misunderstanding." Li Beiguang, deputy director of the Planning Department of the Ministry of Industry and Information Technology (MIIT), said in an interview with the Economic Daily that China is still a developing country with a huge demand for advanced technologies and products. The implementation of 'Made in China 2025' aims to accelerate the transformation and upgrading of Chinese industry. Independent innovation and the development of high-end manufacturing are also necessary to meet China's economic development needs, improve people's livelihoods, and safeguard national security.

  Regarding foreign media claims that "Chinese technology will replace foreign technology," Xu Zhaoyuan, a researcher at the Industrial Economics Research Department of the Development Research Center of the State Council, analyzed that 'Made in China 2025' mainly emphasizes the development of high-end manufacturing, which is comparable to the strategic goals of developed countries such as the US, Japan, and Germany, which focus on high value-added and high-end industries. Therefore, some foreign media claim that China aims to replace foreign manufacturing in high-end industries.

  "Foreign media are overthinking this. No country can monopolize or replace all high-tech industries." Xu Zhaoyuan said that based on the experience of major developed countries, latecomers generally follow a path of industrial upgrading and continuously expanding the proportion of high-end industries. This process has not significantly impacted the global manufacturing landscape. For example, Japan, South Korea, and Germany's pursuit and rise in manufacturing did not completely replace American manufacturing.

  In other words, the implementation of 'Made in China 2025' will certainly promote further technological breakthroughs in some industries, developing China's own high-end technologies, and will create some competition for other countries' high-end industries. However, each country has its own advantageous industries, and it is impossible for any country's manufacturing to completely replace foreign manufacturing.

  Since the beginning of this year, several international organizations, including the Mercator Institute for China Studies in Germany, the EU Chamber of Commerce in China, and the American Chamber of Commerce, have published research reports on 'Made in China 2025'. In response, Li Beiguang emphasized that the relevant industry domestic market share and other development indicators of 'Made in China 2025' mentioned in the reports are all cited from research reports compiled by the Manufacturing Strong Country Strategy Advisory Committee. These are predictive and mainly play a guiding role. Moreover, the Strategy Advisory Committee is a research and consulting institution composed of experts, scholars, and corporate executives. When releasing the roadmap, it stated that the above indicators are predictive, non-binding, and not government actions.

  It won't lead to unfairness.

  After the release of 'Made in China 2025', some people argued that China would increase investment in domestic enterprises, leading to unfairness for foreign enterprises. In response, Li Beiguang stated that for more than two years since the implementation of 'Made in China 2025', the same standards have been applied to both domestic and foreign-invested enterprises. In January 2017, the State Council issued a notice that foreign-invested enterprises and domestic enterprises are equally applicable to the strategic policies and measures of 'Made in China 2025'.

  For example, in terms of establishing manufacturing innovation centers, the National Power Battery Innovation Center has jointly established a joint laboratory with the University of Western Ontario in Canada, and the National Additive Manufacturing Innovation Alliance has three overseas member units. In terms of intelligent manufacturing, Nantong COSCO Kawasaki Ship Engineering Co., Ltd.'s "Shipbuilding Intelligent Workshop Pilot Demonstration" has been listed as an intelligent manufacturing pilot demonstration project.

  Li Beiguang added that the C919 is a model of cooperation between Chinese and foreign enterprises. Its engines, avionics, and flight control systems come from several European and American joint ventures or wholly-owned companies, including suppliers such as General Electric and Honeywell. There are more than a dozen international companies among the first-tier suppliers, and hundreds of second- and third-tier suppliers.

  "The view that only supports domestic enterprises and puts pressure on foreign enterprises is a misreading and misunderstanding, as well as subjective assumptions and deliberate misinterpretations." Qiao Biao, director of the Planning Institute of CCID Consulting, analyzed that on the surface, this is a concern about China's manufacturing development strategy. In essence, it is using international discourse hegemony to put pressure on China's manufacturing development, even provoking dissatisfaction among foreign-invested enterprises and reducing the attractiveness of China's manufacturing development environment. Further analysis shows that the concerns of European and American countries about 'Made in China 2025' mainly stem from the fear that the rise of China's high-end manufacturing industry will seize international markets.

  It should be noted that many developed countries currently impose strict restrictions and export bans on many of their high technologies and products. "The fact that core technologies are controlled by others is the crux of the problem of China's manufacturing industry being large but not strong." Qiao Biao believes that without solving this problem, not only will the transformation and upgrading of traditional industries become empty talk, but the development of strategic emerging industries will also lack a foundation. The starting point of 'Made in China 2025' is to rely on independent innovation to solve the shortcomings in our development and meet the needs of the constantly upgrading domestic market for products.

  It will bring huge business opportunities to both Chinese and foreign markets.

  Qiao Biao frankly stated that any country is willing to improve the quality and level of its equipment, which is understandable. However, improving the quality and level of equipment behind closed doors is tantamount to working in isolation under the conditions of globalization and will not achieve the desired results.

  "China is actively promoting 'Made in China 2025', providing broad market opportunities and cooperation prospects for companies worldwide." Li Beiguang said that after the release of 'Made in China 2025', China has conducted active exchanges and cooperation with some countries. For example, a cooperation mechanism has been established between 'Made in China 2025' and Germany's "Industry 4.0," achieving positive results.

  However, due to factors such as cost, the advantages and focus of developed countries in Europe and America are still mainly in the field of high-end manufacturing. China's manufacturing industry still needs time to develop from the low and mid-range to the high-end. Li Beiguang revealed that in the coming period, China will maintain a complementary relationship with major manufacturing powers such as the US and Japan. The existing global industrial division of labor and competitive landscape are unlikely to undergo disruptive changes in the short term.

  It is certain that as China's market pursues higher product quality and equipment upgrades, its own level will improve, and this will inevitably promote the expansion of the world market. Qiao Biao analyzed that, on the one hand, the implementation of 'Made in China 2025' will bring huge market opportunities to Chinese and foreign companies. Chinese companies need to improve the quality of product manufacturing, which requires improving process and equipment levels. In this process, they need to cooperate with developed countries, and more foreign equipment manufacturing products and technologies will enter the Chinese market.

  On the other hand, with the implementation of 'Made in China 2025', more Chinese and foreign companies will strengthen cooperation in equipment technology. China is the world's largest consumer market and the largest market for advanced technology applications. For foreign equipment to enter the Chinese market, it must localize its products. For example, General Motors in the US now accounts for 17% of the market share in China because it has been modified according to China's road conditions, climate conditions, etc., and its market share has continued to expand.

  Li Beiguang stated that the release and implementation of 'Made in China 2025' is not about "not buying foreign products" or "replacing foreign manufacturing." On the contrary, in the process of promoting 'Made in China 2025', China will always adhere to the concept of open development and win-win cooperation, cooperate with more foreign companies, and create a good environment for pragmatic cooperation between enterprises. (Reporter Jileilei)