China unveils new strategy to cement tech manufacturing dominance
The Chinese authorities are planning a new initiative, modelled on "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 is intended to bolster 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 make Beijing a hegemon
The flagship initiative, endorsed by Xi Jinping himself, "Made in China," is set to be another such strategy following the 2015 one. This strategy for the next decade will emphasise technologies related to chip production. Bloomberg reports that Chinese decision-makers are initially working on a five-year plan to take effect from 2026. Its goal is to maintain the manufacturing sector's share of China's GDP at a stable level.
The details of the five-year plan are expected to be released during the annual parliamentary session in March 2026. The industrial strategy, however, could be unveiled at any time, Bloomberg reports. The Chinese National Development and Reform Commission (NDRC) has not commented on the matter.
Chinese leaders are speaking of the need to boost consumption to avoid a deflationary spiral and to offset the anticipated decline in exports due to Trump's tariffs. In March, China's Premier Li Qiang stated that "vigorously boosting consumption" is his government's priority for 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 in May during a visit to a ball bearing factory in Henan Province.
Xi's government published the "Made in China 2025" plan in 2015. The strategy aimed to position China as a leader in producing, amongst other things, electric vehicles, passenger aircraft, semiconductors, and robots. The State Council, China's equivalent of the government, set the goal of establishing the country as an industrial power by 2035 and a "major industrial power" by 2049. This coincides with the centenary of the founding of the People's Republic of China.
