By When China unveiled its Made in China 2025 strategy in 2015, the plan was met with awe and anxiety. With its aim to leapfrog into high-value manufacturing, it was a roadmap for global dominance in key industries—and a clarion call to its rivals.
Setting the Stage
For decades, China dominated in volume, not value. MIC 2025 marked a pivot, focusing on quality over quantity. It included 10 high-tech sectors ranging from electric vehicles to aerospace, designed to reduce foreign dependency and enhance innovation.
Milestones Achieved
- Aerospace: The COMAC C919, a domestically produced jet, made its commercial debut, symbolizing China’s aerospace ambitions.
- High-Speed Rail: Expansion continued at an unparalleled pace, with technological improvements that rival Japanese and European systems.
- Green Technology: China became the largest global investor in clean energy, controlling 80% of the solar panel supply chain.
How the West Responded
The West, particularly the U.S., viewed MIC 2025 as a strategic threat. It became a key trigger for the U.S.–China trade war, with tariffs, bans, and strategic decoupling efforts unfolding in its wake. American and European companies pushed back against what they saw as state-led capitalism and forced technology transfers.
Critical Weaknesses
While there’s been progress, several goals remain unmet:
- Core Technologies: China still lacks self-sufficiency in critical areas like advanced semiconductors.
- Over-reliance on State Aid: Many MIC 2025 enterprises struggle to compete without government backing.
- Innovation Ecosystem: Despite growth, China’s R&D environment is often described as rigid, risk-averse, and state-driven.
Global Implications
The initiative forced other nations to rethink their industrial strategies. The U.S. launched its CHIPS Act, the EU pursued “technological sovereignty,” and Asia diversified supply chains.
As we enter the next phase, the legacy of MIC 2025 lies in its ability to galvanize both domestic reforms and global realignments.