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

Why develop core technologies in high-end industries? Is it really to replace foreign technology? In response to these questions, reporters interviewed government officials and industry experts.

It is impossible to replace all foreign manufacturing.

"Some foreign media believe that 'Made in China 2025' is about import substitution, which is a misunderstanding and misinterpretation." Li Beiguang, deputy director of the Planning Department of the Ministry of Industry and Information Technology, stated in an interview with the Economic Daily 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' aims to accelerate the transformation and upgrading of China's industry, and to carry out independent innovation and develop high-end manufacturing to meet the needs of economic development, improve people's livelihoods, and ensure national security.

In response to foreign media's claims that 'Chinese technology will replace foreign technology', Xu Zhaoyuan, a researcher at the Development Research Center of the State Council's Industrial Economy Research Department, analyzed that 'Made in China 2025' mainly emphasizes the development of high-end manufacturing, which aligns with developed countries like the US, Japan, and Germany that focus on high value-added and high-end industries. Therefore, some foreign media claim that China aims to replace foreign manufacturing in high-end industries.

"Foreign media are somewhat overthinking; no country can monopolize or replace all high-tech industries," Xu Zhaoyuan said. From 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, without significantly impacting the global manufacturing landscape. For example, during Japan's, South Korea's, and Germany's rise in manufacturing, they did not completely replace American manufacturing.

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

Since the beginning of this year, several international organizations such as Germany's Mercator Institute for China Studies, the European Union Chamber of Commerce in China, and the American Chamber of Commerce have published research reports on 'Made in China 2025'. In this regard, Li Beiguang emphasized that the relevant industry market share mentioned in these reports and other development indicators related to 'Made in China 2025' are drawn from research reports compiled by the Manufacturing Power Strategy Advisory Committee. These are predictive and mainly serve a guiding role. Moreover, the advisory committee consists of experts, scholars, and corporate executives who have stated that these indicators are predictive and not binding; they are not government actions.

Will not bring unfairness.

'After the release of 'Made in China 2025', there were claims that China would increase investment in domestic enterprises at the expense of foreign enterprises. In response, Li Beiguang admitted that for more than two years since implementing 'Made in China 2025', we have applied the same standards to both domestic and foreign-funded enterprises equally. In January 2017, the State Council issued a notice stating that foreign-invested enterprises and domestic enterprises are equally subject to the strategic policies and measures of 'Made in China 2025'.

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

Li Beiguang added that C919 is a model of cooperation between Chinese and foreign enterprises. Its engine, avionics, and flight control systems come from multiple joint ventures or wholly-owned companies from Europe and America. Suppliers include General Electric Company and Honeywell among others; there are more than a dozen international companies among first-tier suppliers and hundreds among second- and third-tier suppliers.

"The view that 'only supports local enterprises while putting pressure on foreign-funded enterprises' is based on misunderstandings or subjective assumptions," said Qiao Biao, director of the Planning Research Institute at CCID Consulting. On the surface, this seems to be attention to China's manufacturing development strategy; however, it essentially uses international discourse power to exert pressure on China's manufacturing development and even incite dissatisfaction among foreign-funded enterprises, reducing the attractiveness of China's manufacturing development environment. Further analysis shows that doubts from European and American countries about 'Made in China 2025' mainly stem from concerns that China's rise in high-end manufacturing will seize international market share.

It should be noted that many advanced technologies and products from developed countries are subject to strict restrictions and export bans to our country. "The issue of core technologies being controlled by others is at the heart of why China's manufacturing is large but not strong," Qiao Biao believes. If this problem is not resolved, not only will upgrading traditional industries become an empty talk but also strategic emerging industries will lack a foundation. The starting point of 'Made in China 2025' is to rely on independent innovation to address our developmental shortcomings and meet the demands of an increasingly upgraded domestic market for products.

Will bring huge business opportunities to both Chinese and foreign markets.

Qiao Biao admitted that any country wishes to improve its equipment quality and level; this is beyond dispute. However, improving one's equipment quality behind closed doors under globalization conditions equates to building cars behind closed doors without achieving desired goals.

"China is actively promoting 'Made in China 2025', providing broad market opportunities and cooperation prospects for enterprises from various countries," Li Beiguang stated. Since the release of 'Made in China 2025', China has engaged in active exchanges and cooperation with some countries. For instance, a cooperation mechanism has been established between 'Made in China 2025' and Germany's 'Industry 4.0', yielding positive results.

However, due to factors such as costs, developed countries like those in Europe and America still hold advantages primarily in high-end manufacturing sectors. China's transition from mid-low end to mid-high end manufacturing will require time. Li Beiguang revealed that for some time ahead, China will maintain a complementary relationship with manufacturing powerhouses like the US and Japan; it will be difficult for existing global industrial division patterns and competitive situations to undergo disruptive changes in the short term.

It is certain that as China's market improves its pursuit of product quality and equipment upgrades, it will inevitably promote expansion in global markets. Qiao Biao analyzed that on one hand, implementing 'Made in China 2025' will bring tremendous market opportunities for both Chinese and foreign enterprises. To enhance product quality in manufacturing processes, Chinese companies must improve their process levels and equipment standards; during this improvement process, cooperation with developed countries will be necessary while more foreign equipment manufacturing products and technologies will enter China's market.

On the other hand, as 'Made in China 2025' is implemented, more Chinese and foreign enterprises will strengthen cooperation in equipment technology fields. China is not only the largest consumer market but also the largest advanced technology application market globally; thus foreign equipment must localize their products to enter China's market. For example, General Motors now holds a 17% market share in China by adapting its products according to local road conditions and climate factors.

Li Beiguang stated that the release and implementation of 'Made in China 2025' does not mean "not buying foreign products" or "replacing foreign manufacturing". On the contrary, during its promotion process, China will always adhere to an open development approach based on cooperation for mutual benefit with more foreign enterprises to create a favorable environment for practical cooperation between companies.