China is intent on maintaining lead in global manufacturing market: report

However, Beijing will need to address growing domestic and international side effects.

China is intent on maintaining its position in the global manufacturing market, given that a strong and capable manufacturing ecosystem is key to enhancing economic resilience, according to a Merics report.

Whilst the Made in China 25 (MIC25) policy sets specific targets, it is now more focused on strengthening manufacturing and leveraging cross-sectoral technologies.

The country has begun promoting the widespread adoption of technologies such as 5G, artificial intelligence, and green technology to enhance productivity.

Furthermore, China’s manufacturing base is central to the “Chinese style modernisation,” focusing on technological upgrading and leveraging high-end technology.

Moreover, China’s leadership shows no inclination to rebalance the economy towards consumption and will accept negative consequences as it pushes its manufacturing-centered objectives.

However, the report said Beijing will at some point need to address growing domestic and international side effects.

These include domestic socioeconomic tensions, growing trade surpluses, and geopolitical competition over technology.