Some foreign media have expressed concerns that "Made in China 2025" aims to replace foreign technology with Chinese technology and foreign manufacturing with Chinese manufacturing in high-end industries, thereby enhancing the global competitiveness of Chinese high-tech enterprises.

　　Why develop core technologies in high-end industries? Is it really to replace foreign technologies? To address these questions, our reporter interviewed government officials and industry experts.

　　Impossible to replace all foreign manufacturing

　　"Some foreign media believe that 'Made in China 2025' is about import substitution, which is a misinterpretation and misunderstanding," said Li Beiguang, Deputy Director of the Department of Planning at the Ministry of Industry and Information Technology, in an interview with Economic Daily. He stated that China is still a developing country with a great demand for advanced technologies and products. The formulation and implementation of "Made in China 2025" aim to accelerate the transformation and upgrading of China's industry. Carrying out independent innovation and developing high-end manufacturing are also to meet the needs of China's economic development, improve people's livelihoods, and safeguard national security.

　　Regarding the foreign media's view that "Chinese technology aims to replace foreign technology," Xu Zhaoyuan, a researcher at the Department of Industrial Economic Research, Development Research Center of the State Council, analyzed that "Made in China 2025" primarily emphasizes the development of high-end manufacturing. The strategic goal aligns with developed countries like the US, Japan, and Germany, which focus on high-value-added, high-end industries. Therefore, some foreign media claim that China intends to substitute foreign manufacturing in high-end industries.

　　"Foreign media are a bit overly concerned; no country can monopolize or replace all high-tech industries," said Xu Zhaoyuan. He added that based on the experience of major developed countries, late-developing countries generally follow a path of industrial upgrading and continuously expanding the proportion of high-end industries. This process has not significantly impacted the global manufacturing landscape. For example, Japan, South Korea, and Germany, during their manufacturing catch-up and rise, did not completely replace "Made in USA."

　　In other words, the implementation of "Made in China 2025" will certainly promote further technological breakthroughs in some industries, develop China's own high-end technologies, and create some competition for high-end industries in other countries. However, each country has its own advantageous industries, and it's impossible for any one country's manufacturing to completely replace foreign manufacturing.

　　Since the beginning of this year, several international organizations, including Germany's Mercator Institute for China Studies, the European Union Chamber of Commerce in China, and the American Chamber of Commerce, have successively published research reports on "Made in China 2025." In response, Li Beiguang emphasized that the relevant development indicators mentioned in these reports, such as domestic market share in specific industries, are cited from research reports compiled by the Manufacturing Power Strategy Advisory Committee. These indicators are predictive and primarily serve as guidance. Furthermore, the Strategic Advisory Committee is a research and consulting body composed of experts, scholars, and corporate executives, and it had already declared when releasing the roadmap that these indicators are predictive, non-binding, and not government actions.

　　Will not lead to unfairness

　　After the release of "Made in China 2025," there were also claims that China would increase investment in domestic enterprises, leading to unfairness for foreign-invested enterprises. In response, Li Beiguang stated frankly that for over two years since the implementation of "Made in China 2025," the same standards have been applied equally to both domestic and foreign-invested enterprises. In January 2017, the State Council issued a notice stating that the strategic policy measures of "Made in China 2025" apply equally to foreign-invested and domestic enterprises.

　　For example, in terms of establishing manufacturing innovation centers, the National Power Battery Innovation Center has co-built a joint laboratory with the University of Western Ontario in Canada, and the National Additive Manufacturing Innovation Alliance already has 3 overseas member units. In terms of intelligent manufacturing, Nantong COSCO KHI Ship Engineering Co., Ltd.'s "Intelligent Workshop Pilot Demonstration for Shipbuilding" was listed as an intelligent manufacturing pilot demonstration project.

　　Li Beiguang added that the C919 is a prime example of cooperation between Chinese and foreign enterprises. Its engines, avionics, and flight control systems come from multiple European and American joint ventures or wholly-owned companies, with suppliers including General Electric and Honeywell, among others. There are more than a dozen international first-tier suppliers and hundreds of second- and third-tier suppliers.

　　"The view that 'only supporting local enterprises and putting pressure on foreign-invested enterprises' is a misinterpretation, a misunderstanding, and also a subjective conjecture and deliberate distortion," analyzed Qiao Biao, Director of the Planning Institute at CCID Think Tank. He stated that superficially, this appears to be a concern about China's manufacturing development strategy, but in essence, it is an attempt to use international discourse hegemony to exert pressure on China's manufacturing development, even inciting dissatisfaction among foreign enterprises and reducing the attractiveness of China's manufacturing development environment. Further analysis reveals that the doubts of European and American countries regarding "Made in China 2025" primarily stem from concerns that the rise of China's high-end manufacturing will seize international markets.

　　It should be noted that many high technologies and products from developed countries are currently subject to strict restrictions and export embargoes against China. "Being constrained by others in core technologies is the crux of China's manufacturing being large but not strong," Qiao Biao believes. He added that if this problem is not solved, not only will the transformation and upgrading of traditional industries become empty talk, but the development of strategic emerging industries will also lack a foundation. The starting point of "Made in China 2025" is to rely on independent innovation to address our development shortcomings and meet the demand for increasingly upgraded products in the domestic market.

　　Will bring huge business opportunities to Chinese and foreign markets

　　Qiao Biao frankly stated that it is undeniable that any country wishes to improve the quality and level of its equipment. However, trying to improve the quality and level of one's equipment behind closed doors, under conditions of globalization, is like reinventing the wheel and will not achieve the desired objective.

　　"China is actively advancing 'Made in China 2025', providing vast market opportunities and cooperation prospects for enterprises from all countries," said Li Beiguang. He added that after the release of "Made in China 2025," China has carried out active exchanges and cooperation with some countries. For example, a cooperation mechanism between "Made in China 2025" and Germany's "Industry 4.0" has been established, yielding positive results.

　　However, due to costs and other reasons, the advantages and focus of developed countries in Europe and America are still primarily in the high-end manufacturing sector. China's manufacturing still needs a process to develop from low-to-mid end to mid-to-high end. Li Beiguang revealed that for a period to come, China will maintain a complementary relationship with manufacturing powerhouses like the US and Japan, and the established global industrial division of labor and competitive landscape are unlikely to undergo disruptive changes in the short term.

　　What is certain is that as the Chinese market improves its own level in pursuing product quality and equipment upgrades, it will inevitably promote the expansion of the world market. Qiao Biao analyzed that, on one hand, the implementation of "Made in China 2025" will bring huge market opportunities to both Chinese and foreign enterprises. To improve the quality of manufactured products, Chinese enterprises must enhance their process and equipment levels. In this improvement process, cooperation with developed countries will be needed, and more foreign equipment manufacturing products and technologies will enter the Chinese market.

　　On the other hand, with the implementation of "Made in China 2025," more Chinese and foreign enterprises will strengthen cooperation in the field of equipment technology. China is the world's largest consumer market and also the largest market for advanced technology applications. For foreign equipment to enter the Chinese market, products must be localized. For example, General Motors in the US currently holds 17% of the market share in China, and its market share has continuously expanded because it adapted its products to China's road conditions, climate, etc.

　　Li Beiguang stated that the release and implementation of "Made in China 2025" is definitely not about "not buying foreign products" or "replacing foreign manufacturing." On the contrary, in the process of promoting "Made in China 2025," China will always adhere to the concept of open development and win-win cooperation, engaging in cooperation with more foreign enterprises and creating a favorable environment for practical cooperation between enterprises. (Reporter Ji Leilei)