American think tank: "Made in China 2025" has succeeded and narrowed the technological gap with the West!
On May 26th, South Korea's media "Choice Economy" published an article stating that according to the assessment, China's ambitious industrial strategy proposed a decade ago in 2015, "Made in China 2025", has achieved remarkable results in enhancing the competitiveness of Chinese enterprises and successfully narrowed the technological gap with the West.
Recently, The Wall Street Journal reported that according to the "Made in China 2025" report commissioned by the American Chamber of Commerce and compiled by the American think tank Rhodium Group, thanks to the strong support from the state for various manufacturing sectors, China has significantly reduced its dependence on imported products in areas such as railways, power generation equipment, medical devices, and renewable energy, and has seized markets from foreign companies in industries like shipbuilding and robotics while improving competitiveness.
The report stated, "Government's strong policy support is the biggest factor behind the success of 'Made in China 2025'. From 2018 to 2022, the scale of tax incentives for innovative enterprises grew by an average of 29% annually, reaching 1.3 trillion RMB in 2022, equivalent to more than half of all R&D expenditures by Chinese enterprises in 2022."
The number of companies enjoying tax incentives in 2023 increased fourfold compared to 2015. From 2015 to 2020, investments made through government funds increased fivefold, reaching $52 billion in 2020.
At the same time, foreign companies were encouraged to produce products and set up research centers in China. These measures helped China establish supply chains for various products, ranging from smartphones to electric vehicles.
The report stated that through these efforts, import dependency in all industries targeted by "Made in China 2025" has been significantly reduced, including information technology, advanced machinery, and medical equipment. For example, the market share of foreign medical devices in China dropped from 24% in 2015 to 14% in 2023.
Camille Blois, vice president of Rhodium Group and the main author of the report, said, "Today's China is different from what it was in 2015, which is related to the massive national funding support for industrial policies. In the future, China will be able to enhance competitiveness and further narrow the gap with developed countries." He added, "Chinese enterprises still rely on foreign sources for commercial aircraft components and lag behind Boeing of the United States and Airbus of Europe, but this situation will change in the coming years with the development of China's domestically produced aviation engines."
The report stated, "China's industrial policy strategy will focus on self-sufficiency, security, and leading the global technology market. Chinese enterprises will enjoy the benefits brought by past industrial policies and lead the world in fields such as biotechnology, robotics, and some medical devices in the next few years."
Source: https://www.toutiao.com/article/1833167868258307/
Disclaimer: This article solely represents the views of the author.