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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 manufacturing with Chinese counterparts 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 the goal truly to replace foreign technologies? To address these questions, a reporter interviewed government officials and industry experts.

  It's impossible to replace all foreign manufacturing.

  "Some foreign media believe that 'Made in China 2025' is about import substitution, which is a misreading and misunderstanding." Li Beiguang, Deputy Director General of the Planning Department of the Ministry of Industry and Information Technology (MIIT), stated in an interview with the Economic Daily that China is still a developing country with a huge demand for advanced technologies and products. The formulation and 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 necessary to meet the needs of China's economic development, improve people's livelihoods, and ensure 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' primarily emphasizes the development of high-end manufacturing. This strategic goal is comparable to that of developed countries such as the United States, Japan, and Germany, which focus on high-value-added, high-end industries. Therefore, some foreign media claim that China aims to replace foreign manufacturing in high-end industries.

  "Foreign media are overly worried. No country can monopolize or replace all high-tech industries." Xu Zhaoyuan said that, based on the experience of major developed countries, newly developing countries 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 sectors, developing China's own high-end technologies, and will pose some competition to 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.

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

  It will not lead to unfairness.

  Following the release of 'Made in China 2025', some have argued that China will increase investment in domestic enterprises, leading to unfairness for foreign enterprises. Li Beiguang frankly 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 enterprises. In January 2017, the State Council issued a notice stating that foreign-invested enterprises and domestic enterprises will equally apply to the strategic policies and measures of 'Made in China 2025'.

  For example, in the establishment of manufacturing innovation centers, the National Power Battery Innovation Center has jointly built a joint laboratory with the University of Western Ontario in Canada, and the National Additive Manufacturing Innovation Alliance has three overseas member units. In the field of intelligent manufacturing, Nantong COSCO KHI 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 prime example of cooperation between Chinese and foreign companies. Its engines, avionics, and flight control systems come from multiple European and American joint ventures or wholly owned companies. Suppliers include General Electric and Honeywell, with more than a dozen international companies among the first-tier suppliers and hundreds more at the second and third tiers.

  "The claim that 'only supporting domestic enterprises puts pressure on foreign enterprises' is a misreading and misunderstanding, and also subjective speculation and deliberate misrepresentation." Qiao Biao, director of the Planning Institute of CCID Consulting, analyzed that while this appears to be concern for China's manufacturing development strategy, it is actually using international discourse hegemony to put pressure on China's manufacturing development, even inciting dissatisfaction among foreign enterprises and reducing the attractiveness of China's manufacturing development environment. Further analysis shows that the European and American countries' questioning of 'Made in China 2025' is mainly due to concerns that the rise of China's high-end manufacturing will seize international markets.

  It should be noted that many developed countries currently impose strict restrictions and export embargoes on many of their high technologies and products. "The fact that core technologies are controlled by others is the root cause 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 an empty phrase, 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 address our developmental shortcomings and meet the needs of the constantly upgrading domestic market.

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

  Qiao Biao frankly stated that it is understandable that any country wants to improve the quality and level of its equipment. However, improving the quality and level of equipment behind closed doors is tantamount to working in isolation in the context of globalization and will not achieve the desired outcome.

  "China is actively promoting 'Made in China 2025,' providing broad market opportunities and cooperation prospects for enterprises worldwide." Li Beiguang stated that after the release of 'Made in China 2025', China has actively engaged in exchanges and cooperation with several 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 priorities of developed countries in Europe and America are mainly in the high-end manufacturing sector. China's manufacturing industry still needs time to transition 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 United States and Japan, and the existing global industrial division of labor and competitive landscape will be difficult to change drastically in the short term.

  It is certain that as China's market pursues higher product quality and equipment upgrades, its own level will improve, which will inevitably stimulate the expansion of the global market. Qiao Biao analyzed that, on the one hand, the implementation of 'Made in China 2025' will bring huge market opportunities to both Chinese and foreign enterprises. For Chinese enterprises to improve the quality of product manufacturing, they must improve their process and equipment levels. In this improvement 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, products must be localized. For example, General Motors in the US already occupies 17% of the market share in China because it has adapted to Chinese road conditions, climate conditions, etc., thereby continuously expanding its market share.

  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 implementing '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)

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