China's Ministry of Industry and Information Technology drafts "Made in China 2025": Targeting an industrial powerhouse.

Release time:2020-02-13

  It is reported that the Ministry of Industry and Information Technology is currently working on drafting plans related to both the 13th Five-Year Plan and the 14th Five-Year Plan. As China’s industrial development enters a new phase, the State Council’s vision for the growth of the industrial and information sectors no longer adheres strictly to the traditional approach of short-term planning conducted "every five years."

  According to the State Council's requirements, the Ministry of Industry and Information Technology will ease the previous "five-year" time constraint in its planning, extending the planning horizon to 2025 while placing greater emphasis on medium- and long-term strategies.

  It is reported that the key theme of this plan revolves around "transforming into a global industrial powerhouse," and it will result in the development of "Made in China 2025," which emphasizes top-level strategic planning. Complemented by a "1+x" model—comprising comprehensive plans for key industries, sectors, and regions—the initiative also draws inspiration from Germany's Industry 4.0 program. The plan will focus on strengthening areas where China’s industry currently lags behind, with the ambitious goal of transitioning from an industrial giant to an industrial powerhouse by 2025.

  Focus on mid-to-long-term strategic planning

  Unlike the overarching approach of the "12th Five-Year Plan," "Made in China 2025," drafted with the participation of academicians from the Chinese Academy of Engineering, downplays the five-year planning timeline and instead directly outlines industrial development policies for the next decade.

  This plan spans the "13th Five-Year Plan" and the "14th Five-Year Plan," making it a medium-to-long-term initiative. After the Chinese Academy of Engineering completes drafting "Made in China 2025," the Ministry of Industry and Information Technology submits it to the State Council for approval, leading to the formation of the overall plan framework, which will then be implemented in detail.

  Originally, according to convention, the previous industrial plan was intended to cover just five years. However, leaders at the State Council, recognizing that five years is a relatively short timeframe—especially given that developments in many industrial sectors cannot be fully clarified within that period—proposed extending this industrial plan to 2025, effectively turning it into a decade-long initiative.

  According to the State Council's requirements, the Ministry of Industry and Information Technology is tasked with developing the top-level design for the 13th Five-Year Plan. Previously, when the ministry worked on the 12th Five-Year Plan, it first focused on sector-specific planning in the early stages, followed by industrial transformation and upgrading strategies later on.

  The Ministry of Industry and Information Technology's "12th Five-Year" planning system includes the overarching "Outline for Industrial Transformation and Upgrading Plan," which serves as the flagship document of the MIIT's 12th Five-Year framework. In addition, the system comprises 16 sector-specific plans, 27 thematic plans, and 3 regional plans.

  However, "Made in China 2025" first establishes the overarching institutional framework before developing specific plans for key industries, sectors, and regions. The source noted that China's industrial development is currently transitioning into a phase of slower growth amid shifting dynamics—and as a result, the top-level institutional design for the next decade will remain firmly focused on "the transformation from an industrial giant to an industrial powerhouse."

  During the 12th Five-Year Plan period, the Ministry of Industry and Information Technology introduced the key concept of "Transformation and Upgrading." The same source noted that while the keywords for the 13th Five-Year Plan and even the 14th Five-Year Plan are still under study, they will undoubtedly revolve around the transition toward becoming an industrial powerhouse—and in the future, there will likely emerge a guiding, overarching concept to steer this process.

  Drawing inspiration from Germany's Industry 4.0 initiative

  A key focus of "Made in China 2025," alongside transformation and upgrading, is the deep integration of industrialization and informatization—often referred to as "the deep convergence of the two." This initiative has also been a priority for the newly established Ministry of Industry and Information Technology since the ministry restructuring in 2008.

  "Actually, the 'Made in China 2025' blueprint is essentially the Industry 4.0 strategy," the source said. "The concept of Industry 4.0 was first introduced and championed by Germany." Chinese leaders and scholars have repeatedly highlighted the significance of Germany's Industry 4.0 initiative in various forums, as German industry has long served as a model for China’s own industrial development.

  In March of this year, during his visit to Germany, Chinese President Xi Jinping published a signed article in the Frankfurter Allgemeine Zeitung, stating that a new wave of global technological and industrial transformation is already on the horizon. Countries around the world are racing to adjust, adapt, and swiftly implement the necessary reforms—among which he specifically highlighted Germany’s “Industry 4.0” strategy.

  In May of this year, Miao Wei, Minister of Industry and Information Technology, stated at the 2014 International Conference on Intelligent Manufacturing that the global integration of manufacturing with the internet is emerging as a major trend—citing Germany’s Industry 4.0 initiative as a prime example.

  The overarching concept of Germany's "Industry 4.0" was introduced at the 2011 Hannover Industrial Fair, when the German government unveiled its "High-Tech Strategy 2020." As one of the ten flagship future projects, Industry 4.0 received a dedicated government investment of €200 million. The initiative aims to solidify Germany's global leadership in critical technologies and strengthen the nation's core competitiveness as a leading technology-driven economic powerhouse.

  Two years later, at the Hannover Industrial Fair, Germany’s “Industry 4.0 Task Force”—a collaboration of industry, government, and academia—released the report titled "Securing the Future of German Manufacturing: Recommendations for Implementing the 'Industry 4.0' Strategy," declaring that the Internet of Things and the service-oriented transformation of manufacturing mark the dawn of the Fourth Industrial Revolution.

  According to Germany's "Industry 4.0" initiative, the key features of future industrial production will include: highly personalized product manufacturing at scale, enabled by the flexible allocation of production resources; extensive involvement of customers and business partners in both operational processes and value-creation activities; and the seamless integration of production with high-quality services. Moreover, the Internet of Things, service networks, and data networks are set to replace traditional, closed manufacturing systems, forming the foundation of industry’s evolution toward the future.

  "The German version of Industry 4.0 offers valuable lessons for China. 'China has always been a manufacturing giant, but it hasn’t yet become a manufacturing powerhouse—it’s even often associated with being cheap and low-end,' the expert said. While people are aware that Chinese industry is large but not strong, the specifics of where exactly it falls short remain unclear.'"

  To address this, the Ministry of Industry and Information Technology has identified four key areas where strengths remain insufficient: foundational materials, basic components, core manufacturing processes, and the underlying industrial technology infrastructure. In response to these four "foundational" areas that require further strengthening, the ministry will also introduce a medium- to long-term plan focused on "strengthening industrial foundations," complementing China's ambitious national strategy—Made in China 2025—which aims to propel the country toward becoming a global industrial powerhouse.

Keywords: China's Ministry of Industry and Information Technology drafts "Made in China 2025": Targeting an industrial powerhouse.

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