Made In China 2025 will have narrow success

Subject

China's Made In China 2025 industrial policy framework.

Significance

Made In China 2025 (MIC 2025) is a ten-year policy framework for comprehensively upgrading the technological base of China’s manufacturing sector. Its aims to make the country a world leader in high-tech production, and switch it to an innovation-driven and environmentally sustainable pattern of economic growth.

Impacts

• Chinese policymakers will use market forces selectively, seeing them as just one tool among others.
• There is a risk that heavy state involvement will in some cases hold back competition and innovative private entrepreneurship.
• Penalties from Washington and other governments will raise the cost of technological espionage, but perhaps not prohibitively.
• Resistance to Chinese high-tech acquisitions will grow stronger in the West, not only in the United States.