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

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

　　It's impossible to replace all foreign-made products.

　　"Some foreign media have interpreted 'Made in China 2025' as aiming solely at import substitution, but this is a misinterpretation and misunderstanding," said Li Beiguang, Deputy Director of the Planning Department at China’s Ministry of Industry and Information Technology, during an interview with reporters from *Economic Daily*. He emphasized that China remains a developing country with significant demand for advanced technologies and products. The development and implementation of "Made in China 2025" are designed to accelerate China’s industrial transformation and upgrading, while fostering independent innovation and advancing high-end manufacturing—all in order to meet the nation’s economic growth needs, improve people’s livelihoods, and safeguard national security.

　　Addressing foreign media claims that "Chinese technology is set to replace foreign technology," Xu Zhaoyuan, a researcher at the Department of Industrial Economy Studies at the Development Research Center of the State Council, analyzed that China's "Made in China 2025" initiative primarily focuses on advancing high-end manufacturing. This strategic goal directly aligns with leading developed nations like the U.S., Japan, and Germany—countries known for their high value-added, cutting-edge industries. As a result, some foreign media outlets have claimed that China aims to supplant foreign manufacturers in these very same high-end sectors.

　　"Foreign media are perhaps overestimating the situation—no single country could ever monopolize or completely replace all high-tech industries," said Xu Zhaoyuan. Drawing from the experiences of the world's leading developed nations, he noted that newly industrializing countries typically follow a path of upgrading their industries and steadily increasing the share of high-end sectors. Yet, throughout this process, these countries haven’t significantly disrupted the global manufacturing landscape. For instance, during their own journeys of catching up and rising in manufacturing, Japan, South Korea, and Germany never fully eclipsed U.S. manufacturing leadership.

　　In other words, the implementation of "Made in China 2025" will undoubtedly spur further technological breakthroughs in certain industries, enabling China to develop its own cutting-edge technologies. While this will inevitably bring about some competition for high-end industries in other countries, each nation still boasts its own competitive advantages. As a result, it’s highly unlikely that any single country’s manufacturing sector could completely replace foreign-made products.

　　So far this year, several international organizations—including Germany’s Mercator China Research Center, the China-EU Chamber of Commerce, and the American Chamber of Commerce—have released research reports focusing on "Made in China 2025." In response, Li Beiguang emphasized that the domestic market share figures and other development indicators related to "Made in China 2025" mentioned in these reports are all drawn from a research report prepared by the Strategic Advisory Committee for a Manufacturing Powerhouse. He noted that these indicators are purely predictive in nature, primarily serving as a guiding tool rather than binding targets. Furthermore, Li pointed out that the Strategic Advisory Committee—which comprises experts, scholars, and senior business executives—is itself a research and advisory body. When unveiling the roadmap, the committee explicitly stated that the aforementioned indicators are forward-looking and carry no mandatory or regulatory weight, nor do they reflect any official government action.

　　Will not lead to unfairness

　　After the release of "Made in China 2025," some have argued that China may increase investment in domestic enterprises, potentially creating an uneven playing field for foreign-invested firms. In response, Li Beiguang openly acknowledged that, over the past two-plus years since the implementation of "Made in China 2025," the initiative has consistently applied identical standards to both domestic and foreign-invested companies—treating them equally. In January 2017, the State Council issued a notice stating that foreign-invested enterprises would enjoy the same strategic policy measures under "Made in China 2025" as domestically funded companies.

　　For instance, in establishing manufacturing innovation centers, the National Power Battery Innovation Center has jointly set up a lab with the University of Western Ontario in Canada, and the National Additive Manufacturing Innovation Alliance already counts three overseas member organizations. Meanwhile, in the field of smart manufacturing, Nantong COSCO KHI Ship Engineering Co., Ltd.’s “Pilot Demonstration Project for an Intelligent Shipbuilding Workshop” has been designated as a pilot demonstration project for smart manufacturing.

　　Li Beiguang added that the C919 is a prime example of Sino-foreign corporate collaboration, with its engines, avionics, and flight control systems sourced from multiple European and American joint ventures or wholly-owned companies. Suppliers include industry giants such as General Electric and Honeywell from the U.S., among which over ten are Tier 1 international suppliers, while the number of Tier 2 and Tier 3 suppliers stretches into the hundreds.

　　"Questioning the view that 'focusing solely on supporting domestic enterprises puts pressure on foreign-invested firms' stems from misinterpretations, misunderstandings, as well as subjective assumptions and deliberate distortions," analyzed Qiao Biao, Director of the Planning Research Institute at CCID Consulting. He added that while outwardly it appears to be a concern about China's manufacturing development strategy, in reality, it’s an attempt to leverage international discourse dominance—using this as a pretext to exert pressure on China’s manufacturing sector, even stirring up discontent among foreign companies and undermining the attractiveness of China’s manufacturing ecosystem. A deeper analysis reveals that the primary source of skepticism from European and American countries regarding China’s "Made in China 2025" initiative lies in their apprehension that the rise of China’s advanced manufacturing could erode their own foothold in global markets."

　　It's important to note that many high-tech industries and their products from developed countries are currently subject to strict restrictions and export embargoes imposed on China. "Being dependent on others for core technologies is the very root cause behind why China's manufacturing sector remains large but not truly strong," argues Qiao Biao. He emphasizes that unless this critical issue is addressed, not only will the transformation and upgrading of traditional industries remain mere empty promises, but the development of strategic emerging industries will also lack a solid foundation. That’s precisely why "Made in China 2025" was launched—to rely on independent innovation as the key solution to our developmental shortcomings and to meet the ever-evolving demands of the domestic market for cutting-edge products.

　　This will bring tremendous business opportunities to both domestic and international markets.

　　Qiao Biao frankly admitted that every country naturally seeks to improve the quality and standards of its own equipment—there’s no denying that. However, striving to enhance one’s equipment in isolation, especially under globalized conditions, is akin to "building a car behind closed doors," ultimately failing to achieve the desired outcomes.

　　"China is actively promoting 'Made in China 2025,' which is creating vast market opportunities and promising avenues for cooperation for businesses from around the world," Li Beiguang stated. He added that since the launch of "Made in China 2025," China has engaged in proactive exchanges and collaborations with several countries. For instance, a cooperative framework has been established between China's "Made in China 2025" initiative and Germany's "Industry 4.0" strategy, yielding significant and positive results.

　　However, due to factors such as cost, the strengths and priorities of developed countries in Europe and North America still lie primarily in high-end manufacturing. Meanwhile, China's manufacturing sector still has a way to go as it transitions from mid-to-low end to mid-to-high end production. Li Beiguang revealed that, over the coming period, China will continue to maintain a complementary relationship with manufacturing powerhouses like the U.S. and Japan. As a result, the globally established industrial division of labor and competitive dynamics are unlikely to undergo any disruptive shifts in the short term.

　　To be sure, China's market has seen its own standards rise as it strives for higher product quality and advanced equipment—efforts that will inevitably contribute to the expansion of global markets. As Qiao Biao points out, on one hand, the implementation of "Made in China 2025" will create tremendous market opportunities for both domestic and foreign enterprises. For Chinese companies looking to enhance their manufacturing quality, improving process and equipment capabilities is essential. And in this ongoing journey of advancement, collaboration with developed nations will become increasingly vital—opening doors for more foreign-made equipment, technologies, and products to enter the Chinese market.

　　On the other hand, with the implementation of "Made in China 2025," more Chinese and foreign companies will strengthen their collaboration in the field of equipment technology. China is not only the world's largest consumer market but also the biggest hub for advanced technology applications. Meanwhile, for foreign equipment manufacturers looking to enter the Chinese market, localization of their products is essential. For instance, General Electric from the U.S. already holds a 17% market share in China—precisely because it has tailored its products to suit China’s unique road conditions, climate, and other local factors, enabling the company to steadily expand its market presence.

　　Li Beiguang stated that the launch and implementation of "Made in China 2025" are by no means about "refusing to buy foreign products" or "replacing foreign manufacturing." On the contrary, as China advances "Made in China 2025," it will consistently uphold the principles of open development and win-win cooperation, actively collaborating with more foreign companies and fostering a favorable environment for practical business partnerships. (Reporter: Ji Leilei)