Made in China 2025 Achieves Dual Improvements in Innovation Capacity and Fundamental Capabilities After Two Years of Implementation
After two years of implementation, the top-level framework of Made in China 2025 has been basically established. Both innovation capabilities andfundamental industrial capabilities have improved, playing an important role in stabilizing China’s industrial growth and accelerating the transformation and upgrading of the manufacturing sector.
Going forward, China will continue to focus on intelligent manufacturing as the primary direction, accelerate the integration of manufacturing and the Internet, prioritize the development of next-generation information technology and advanced materials industries, and strengthen the capabilities of core foundational industries.
China’s standard high-speed train has achieved breakthroughs and entered trial operation, the C919 large passenger aircraft successfully completed its maiden flight, and high-precision CNC gear grinding machines have reached advanced international levels. “Over the past two years, the implementation of Made in China 2025 has achieved initial results and played an important role in stabilizing industrial growth and accelerating manufacturing transformation and upgrading,” said Luo Wen, Director of the Planning Department of the Ministry of Industry and Information Technology (MIIT), in an interview with the Economic Daily.
He stated that China will continue to deepen supply-side structural reform in manufacturing, encourage the elimination of excess production capacity, accelerate the establishment of manufacturing innovation centers, and promote new manufacturing models such as customized production and network-based manufacturing.
I. Establishing a Comprehensive Top-Level Design
Top-Level Framework Has Been Basically Completed
“Two years after the release and implementation of Made in China 2025, the top-level framework has basically been completed. A policy system has been formed, with Made in China 2025 as the core, 11 special development plans as supporting frameworks, and technology roadmaps for key industries and the Industrial ‘Four Foundations’ Development Catalog as supplementary guidance,” said Xin Guobin, Vice Minister of MIIT.
The five major projects proposed in Made in China 2025 have been launched ahead of schedule.
Currently:
The National Power Battery Innovation Center has been established.
Innovation centers for additive manufacturing and industrial robots have entered the preparation stage.
226 intelligent manufacturing standardization pilot projects and new model application projects have been carried out.
109 intelligent manufacturing demonstration projects have been selected.
47 categories and 61 projects have been implemented under the Industrial Strong Foundation Project.
Green manufacturing standards, green product evaluation systems, and green factory pilot programs have been promoted.
Key technology industrialization projects in fields such as rail transit equipment and new energy vehicles have been advanced.
“Major landmark projects are being accelerated,” Luo Wen explained. In 2016, 15 projects, including 4G evolution systems and flexible composite robots with key components, were selected for concentrated policy support to accelerate engineering development and industrialization. Many of these projects have achieved significant breakthroughs.
In addition, MIIT approved 12 cities, including Ningbo, as well as urban clusters such as Southern Jiangsu, the Pearl River West Bank, and Changsha-Zhuzhou-Xiangtan, as pilot demonstration areas for Made in China 2025.
Through the Made in China 2025 Provincial and Municipal Guidelines, China has identified key industries for regional development, encouraging local governments to pursue differentiated and specialized industrial strategies.
China has also launched special campaigns to improve quality and branding in equipment manufacturing, consumer goods industries, and industrial enterprises, accelerating the construction of quality and brand service platforms.
Xin Guobin summarized:
“Improving top-level design and strengthening fundamental capabilities are prerequisites; balancing stable growth and structural adjustment is an inherent requirement; combining international cooperation with global expansion is a strategic choice; transforming government functions while strengthening the role of market entities is the pathway to success.”
Strengthening Foundations to Promote Innovation
“During the two years of implementing Made in China 2025, China’s manufacturing innovation capabilities and fundamental industrial capabilities have both improved,” said Xin Guobin.
On one hand, R&D investment intensity has increased significantly, the number of invention patents has grown substantially, a number of key core technologies have achieved breakthroughs, and enterprises have become increasingly important drivers of innovation.
On the other hand, progress has been made in solving issues related to core basic components, key materials, and advanced manufacturing processes, continuously strengthening the technological foundation of industries.
Intelligent Manufacturing as the Main Direction
Intelligent manufacturing is the primary focus of Made in China 2025.
Currently:
Key standards for digital engineering reference models, integrated security systems, and evaluation frameworks have been developed.
A number of smart factories and digital workshops have been established.
The first batch of 109 intelligent manufacturing demonstration projects achieved:
38% improvement in production efficiency;
9.5% improvement in energy efficiency;
21% reduction in operating costs.
According to reports, MIIT has organized 99 companies to participate in green design demonstration programs, released a green product catalog covering 119 products, established green factory and green supply chain evaluation standards, and promoted the creation of 51 national low-carbon industrial parks.
China’s energy consumption per unit of industrial added value is expected to decrease by approximately 5%. The utilization rates of industrial by-products have also improved significantly:
Fly ash utilization rate: 71%
Metallurgical slag utilization rate: 75%
Industrial gypsum utilization rate: 47%
Integration of Manufacturing and the Internet Begins to Show Results
The integration of manufacturing and the Internet has begun to generate significant benefits.
The Internet has become widely involved in research and design processes. In 2016:
The adoption rate of digital R&D design tools reached 61.8%.
The networking rate of digital production equipment in industrial enterprises reached 38.2%.
Personalized customization has expanded rapidly in industries such as clothing and home furnishings. Collaborative R&D and manufacturing models are emerging in automotive, aviation, and aerospace industries.
Internet-based innovation platforms and entrepreneurship ecosystems are also continuously developing.
“Many of our products still have significant gaps compared with foreign products in terms of quality safety, stability, and consistency,” Luo Wen noted.
MIIT has strengthened quality consulting, diagnosis, and brand development efforts. Some products in areas such as raw materials and major equipment have reached international advanced levels.
A total of 251 enterprises have been recognized as brand cultivation demonstration companies, while the market share of the first 22 industrial cluster brand pilot companies increased by an average of 2.3%.
Prioritizing Information Technology and Advanced Materials Industries
Luo Wen pointed out that future implementation of Made in China 2025 will prioritize two core foundational industries:
1. Next-Generation Information Technology
Key development areas include:
Software
Integrated circuits
New-generation displays
Cloud computing
Big data
Virtual reality
Green computing
Artificial intelligence
Smart hardware
China will focus on overcoming bottlenecks in core general-purpose chip design and manufacturing, while accelerating 5G research, development, and commercialization.
2. Advanced Materials
The focus will be on:
Advanced steel materials;
Petrochemical materials;
Special alloys for high-end equipment;
High-performance fibers;
Superconducting materials;
Nanomaterials;
Graphene materials.
China aims to break through technological barriers in critical materials and accelerate research into strategic emerging materials.
Strengthening Independent Capabilities in Core Technologies
Currently, many high-end equipment, core chips, control systems, and key materials required for industrial development still rely heavily on imports, leaving room for improvement in independent innovation capabilities.
“Three approaches should be utilized: stabilizing industrial investment, expanding information consumption, and promoting international industrial cooperation,” Luo Wen explained.
China will:
Develop investment guidelines for technological transformation in key industries;
Establish major project databases;
Create continuous project pipelines;
Accelerate optical network infrastructure construction;
Promote faster and more affordable Internet access;
Encourage the development and application of smart homes and smart vehicles.
“Core technologies cannot simply be purchased with money,” Xin Guobin emphasized.
Recent acquisitions and mergers involving Chinese enterprises and foreign companies are market-driven decisions made independently by enterprises.
High-tech industries require large investments, involve high risks, and face significant uncertainty. Government guidance and support for such industries are common practices worldwide.