HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.
![handle is hein.crs/govekvv0001 and id is 1 raw text is: Con gression I Research SerVces
inforrning th 1 reiltv dbte since 1914
Updated March 10, 2023
Made in China 2025 Industrial Policies: Issues for Congress
The People's Republic of China (PRC or China) aims to
gain a global economic and technology leadership position
through a range of state-led industrial and related science
and technology (S&T) policies. These policies feature a
heavy government role in directing and funding PRC firms
to acquire foreign technology and related capabilities-
including basic and applied research and talent-in areas
where the United States has long been a global leader and
has strong comparative advantages. Many Members of
Congress have expressed concern that China's policies, if
successful, could undermine U.S. technological leadership,
further shift advanced production and research to China,
and support a wide range of China's advancements,
including in defense. The scope and scale of China's efforts
are evident in the amount of state direction and support
devoted to them; PRC ambitions to lead across the entire
value chain, rather than just segments of it, in key advanced
and emerging technologies; and the range of tactics China
uses use to target and acquire U.S. and allied capabilities.
Overview
In November 2022, at its 20th Party Congress, the
Communist Party of China (CPC) reinforced its focus on
technological innovation as the core driver of China's
development. The CPC initially set that focus in its
Medium- and Long-Term Plan for Science in Technology
(MLP) (2006-2020). The MLP calls for more assertive
efforts to acquire foreign technology and for PRC firms to
lead such efforts. In support of the MLP, in 2015, China's
State Council issued Made in China 2025 (MIC2025)-a
broad set of industrial plans that aim to boost
competitiveness by advancing China's position in the
global manufacturing value chain, leapfrogging into
emerging technologies, and reducing reliance on foreign
firms. MIC2025 stresses indigenous innovation, but this
process often involves the acquisition, absorption, and
adaptation of foreign technology by PRC entities that recast
these capabilities as their own. The MLP promotes diverse
forms of state ownership and control of PRC firms and
increases firms' flexibility to operate overseas, which may
obscure the full extent of the PRC state's role in business
actions.
MIC2025 calls for technological breakthroughs in 10
sectors, supports a range of sector-specific plans (Figure 1),
and sets goals for each sector to increase the share of
production by PRC firms. (Figure 2). It calls for China to
lead in each part of the value chain. In semiconductors, for
example, this includes design, operating systems,
production, packaging, testing, equipment, and materials.
MIC2025 is focused on advanced manufacturing and seeks
to transform China's economy from one that assembles
goods to one that invents the products it makes. Specific
goals include the following:
By 2025. Boost manufacturing quality, innovation, and
labor productivity; obtain an advanced level of technology
integration; reduce energy and resource consumption; and
develop globally competitive firms and industrial centers.
By 2035. Reach a level of development that is on par with
global industry at an intermediate level, improve
innovation, make major technology breakthroughs, lead
innovation in specific industries, and set global standards.
By 2049. Lead global manufacturing and innovation with a
competitive position in advanced technology and industrial
systems. (This date coincides with the 100th anniversary of
the founding of the PRC.)
Figure I. China's Industrial Priorities (201 5-2025)
Source: Notice of the State Council on Issuing Made in China 2025,
May 8, 2015, Guofa [2015] No. 28.
Figure 2. Select MIC 2025 Domestic Content Goals
0% 20% 40% 60% scr0 10
Source: U.S.-China Business Council.
Note: Dates for domestic content goals range from 2020 to 2030.
China's 14 Five-Year Plan (FYP) for 2021-2025 promotes
MIC2025 goals in several respects. It seeks to develop](ViewImageLocal?handle=hein.crs/govekvv0001&div=1&collection=&method=preview&ext=.png&size=3)