In 2015, China set out on an ambitious 10-year plan – “Made in China 2025” – to achieve self-reliance, innovation and strength in the manufacturing industry within 10 years. But during that time, U.S. sanctions tried to stop China achieving its targets. Now, with only eight months left until 2025, the South China Morning Post has investigated China’s progress and concluded most targets have been met despite the sanctions and the trade war with the U.S. When the plan was first set out, most cars on Chinese roads were from Western carmakers, and the sky was dominated entirely by aircraft made by Boeing or Airbus. Many Chinese factories could not operate without imported machine tools. Chips, operating systems, and software in computers and mobile phones were mostly sourced from the U.S. Even the databases used by banks relied on multinational corporations for coding and maintenance. Back then, China stood at the lower end of the global industrial value chain, producing mostly cheap and technically backward products. 'Made in China 2025' sought to change that, allowing Chinese manufacturing, through scientific and technological advancements, to produce high-quality, hi-tech and high-value products.
In 2018, then-U.S. President Donald Trump tried to upset China’s plan by initiating a trade war. The U.S. government sanctioned Chinese hi-tech enterprises, put up high tariffs and conducted a nationwide investigation of scientists collaborating with China. After Joe Biden took over as U.S. President in 2021, he went a step further by imposing measures such as a chip export ban on China. Since the outbreak of the trade war, the Chinese government has refrained from publicly discussing the 'Made in China 2025' plan, and many related materials have been removed from its websites.
But based on official books published a decade ago and other authoritative sources, the South China Morning Post has compiled more than 260 goals previously proposed under the plan. These goals span 10 key areas, many involving highly specialized and complex technologies. The analysis confirms that more than 86% of these goals have been achieved, with some others likely to be completed later this year or next. Meanwhile some of the targets, such as those for electric vehicles (EV) and renewable energy production, have been well surpassed. As a direct result of the persistence and advancement of the 'Made in China 2025' plan, there have been profound changes in Chinese society: the number of electric vehicles bought by Chinese consumers has now surpassed that of fossil fuel vehicles, with the most popular being local brands; the Chinese-made passenger plane C919 has begun serving some of the busiest routes; the widespread adoption of 5G technology allows railway passengers in China to enjoy high-speed internet even when passing through tunnels; China has more smart factories and automated terminals than any other country; high-end phones using domestic chips and operating systems have become bestsellers; and the production capacity of Chinese shipyards has surpassed that of the United States by over 200 times, among others.
Some goals remain unfulfilled, including the use of advanced photolithography technology in IC manufacturing, intercontinental passenger aircraft and broadband internet satellite networks. This year, the Chinese government has proposed another ambitious plan to develop “new productive forces”, which is seen as a continuation of the 'Made in China 2025' initiative. Now, faced with high-quality and low-cost hi-tech products from China, especially in photovoltaics, large wind turbines and electric vehicles, the West is considering launching new trade wars and sanctions. But it is doubtful just how successful they may be. Looking at the restrictive measures the West has put in place to date, they have proven limited in their effectiveness – and sometimes even counterproductive.
One of the areas where China has faced the most roadblocks has been the information technology industry. The United States and its allies not only prevent Chinese companies from accessing advanced chip technology, but they also make it difficult for Chinese-produced telecommunications products, such as 5G base stations, to enter European and American markets. The inevitable decrease in revenue in turn puts pressure on scientific and technological research and development. Despite this challenge, China has achieved most of the goals set in integrated circuits, communication equipment, operating systems, industrial software and smart manufacturing. Chinese companies can now produce high-value products, including servers, desktop CPUs, solid-state drives, high-speed fiber optics, industrial operating systems and big data systems. Some of these products have captured a considerable market share.
AI phones became a hot topic at last year’s Consumer Electronics Show (CES), but as early as 2015, China had already included AI-enhanced mobile chipsets in its planning. Nowadays, Chinese smartphones with AI features are highly competitive and have become much sought after. In the field of photolithography technology, Huawei Technologies has achieved some high-end chip manufacturing, although not yet the industrialization of the most advanced EUV photolithography technology. In the world of EVs, the technologically advanced vehicles produced in China have been eagerly sought by global consumers, propelling China to surpass Japan as the world’s biggest car exporter last year.
In fact, the more acclaim the Chinese EVs attract, the more sanctions they are hit with. They have become the main target of a new round of sanctions and tariffs with the U.S. and some European countries citing Chinese government intervention as their reason for the move. According to the 'Made in China 2025' goals, EV annual sales were supposed to reach 3 million by next year, but Chinese carmakers already sold close to 10 million last year, with BYD Automotive alone exceeding 3 million, the South China Morning Post reports.
