Made in China 2025 Plan and Economic Nationalism

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Made in China 2025 consists of a ten-year-long plan that aims to improve the manufacturing foundation of China, which is primarily led by the government. The plan focuses on the high-tech industry and more specific assets such as improved information technology, energy vehicles, robotics, telecommunications, and AI (McBride & Chatzky, 2019). The main goal of the plan is to reduce Chinas dependency on international producers of high-tech items by increasing local production. This is especially relevant for objects such as semiconductors, a market that is dominated by China as a buyer but underserved as a supplier. The Made in China 2025 plan is seen as both a threat to global competition and a form of economic nationalism by the U.S.

Certain nations, such as the U.S., find that such an expansion by China can be a form of economic nationalism and even a breach of safety. Chinese state-led investments can be found among U.S. firms with a focus on high-tech concepts. The interests lie in technologies, such as facial recognition, 3D printing, or autonomous vehicles, which have both military and civilian uses. The high-tech industrial policy is a form of economic nationalism because it has elements of mercantilism since technology is a source of power, which has to be preserved through restrictive trade practices (Balaam & Dillman, 2018). From an economic standpoint, the policy is a threat due to its ambition to become the dominant supplier of many major chains. Critics of the policy even find the plan to be more motivated by political priorities than economic considerations. It is not entirely clear whether Made in China 2025 serves as a zero-sum approach to a nationalistic economic influence. However, in the case that China extends its production capabilities in every high-tech field, it may function to diminish global competition.

In conclusion, while the Made in China 2025 plan focuses on creating independence for China, its ambition to become the dominant supplier of many major chains in the high-tech industry has raised concerns among some nations. The plan has elements of mercantilism and is seen as motivated by political priorities rather than economic considerations. Its implementation may result in markets becoming saturated with Chinese suppliers, diminishing global competition, but this is not explicitly outlined in the policy.

References

Balaam, D. N., & Dillman, B. (2018). Introduction to international political economy (7th ed.). Routledge.

McBride, J., & Chatzky, A. (2019). Is made in China 2025 a threat to global trade? Council on Foreign Relations. Web.

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