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CHINA 2025
JAYESH C S PAI
Factory Asia
 CHINA PRODUCES ABOUT 80% OF THE WORLD’S
AIR-CONDITIONERS, 70% OF ITS MOBILE PHONES
AND 60% OF ITS SHOES. THE WHITE HEAT OF
CHINA’S ASCENT HAS FORGED SUPPLY CHAINS
THAT REACH DEEP INTO SOUTH-EAST ASIA.
 LOW-COST WORK THAT DOES LEAVE CHINA
GOES MAINLY TO SOUTH-EAST ASIA, ONLY
REINFORCING FACTORY ASIA’S DOMINANCE
THREE FORMIDABLE ADVANTAGES
IN MANUFACTURING
 LOW-COST MANUFACTURING - CHINA BOASTS CLUSTERS OF
EFFICIENT SUPPLIERS THAT OTHERS WILL STRUGGLE TO REPLICATE. IT
HAS EXCELLENT, AND IMPROVING, INFRASTRUCTURE, AND ITS FIRMS
ARE USING AUTOMATION TO RAISE PRODUCTIVITY, OFFSETTING
SOME OF THE EFFECT OF HIGHER WAGES
 SECOND STRENGTH IS FACTORY ASIA ITSELF. AS WAGES RISE, SOME
LOW-COST ACTIVITY IS INDEED LEAVING THE COUNTRY. MUCH OF
THIS IS PASSING TO LARGE LOW-INCOME POPULATIONS IN SOUTH-
EAST ASIA
 THIRD ADVANTAGE - INCREASINGLY A LINCHPIN OF DEMAND. AS
THE SPENDING AND SOPHISTICATION OF CHINESE CONSUMERS
GROWS, FACTORY ASIA IS GRABBING A BIGGER SHARE OF HIGHER-
MARGIN MARKETING AND CUSTOMER SERVICE
One Two Three Four Five Five Ten
ONE
•CHINA WILL DEVELOP TO A MANUFACTURING POWER.
TWO
•INTEGRATING INFORMATION TECHNOLOGY AND INDUSTRY TO ACHIEVE THE GOAL.
THREE
•ACHIEVING THE GOAL THROUGH A "THREE STEP" STRATEGY
FOUR
•FOUR PRINCIPLES
FIVE
•FIVE GUIDELINES
FIVE
•FIVE PROJECTS
TEN
•10 KRY SECTORS
One
 A TARGET:
 CHINA WILL DEVELOP INTO A MANUFACTURING
POWER.
Two
 INTEGRATING INFORMATION TECHNOLOGY AND
INDUSTRY TO ACHIEVE THE GOAL
Three
 "THREE STEP" STRATEGY, AND EACH STEP WILL
REQUIRE ABOUT TEN YEARS.
 IN THE FIRST STEP, BY 2025 CHINA WILL BE RANKED AMONG
THE MANUFACTURING POWERS;
 IN THE SECOND STEP, BY 2035 CHINA'S MANUFACTURING
SECTOR WILL
REACH A GENERALLY MODERATE LEVEL AMONG THE
MANUFACTURING POWERS;
 THE THIRD STEP WILLMEAN TRANSFORMING CHINA INTO A LEA
DING MANUFACTURING POWER BY 2049, WHICH WILL BE THE
100TH ANNIVERSARY OF THE FOUNDING OF THE PEOPLE'S REP
UBLIC OF CHINA.
Four
 FOUR PRINCIPLES
 MARKET-ORIENTED AND GOVERNMENT-
GUIDED;
 BASED ON THE PRESENT AND HAVING A LONG-
TERM PERSPECTIVE;
 COMPREHENSIVELY PRESSING FORWARD AND
MAKING BREAKTHROUGHS IN KEY AREAS;
 INDEPENDENT DEVELOPMENT AND WIN-
WIN COOPERATION.
FIVE
 FIVE GUIDELINES:
 INNOVATION-DRIVEN,
 GIVING PRIORITY TO QUALITY,
 GREEN DEVELOPMENT,
 OPTIMIZING STRUCTURE, AND
 TALENT ORIENTED
FIVE
 FIVE PROJECTS:
 ESTABLISHING A MANUFACTURING INNOVATION
CENTER
Ten
 NEW INFORMATION TECHNOLOGY,
 NUMERICAL CONTROLTOOLS AND ROBOTICS,
 AEROSPACE EQUIPMENT,
 OCEAN ENGINEERING EQUIPMENT AND HIGH-TECHSHIPS,
 RAILWAY EQUIPMENT,
 ENERGY SAVING AND NEW ENERGY VEHICLES,
 POWER EQUIPMENT,
 NEWMATERIALS,
 BIOLOGICAL MEDICINE AND MEDICAL DEVICES, AND
 AGRICULTURAL MACHINERY.
China 2025

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China 2025

  • 2.
  • 3. Factory Asia  CHINA PRODUCES ABOUT 80% OF THE WORLD’S AIR-CONDITIONERS, 70% OF ITS MOBILE PHONES AND 60% OF ITS SHOES. THE WHITE HEAT OF CHINA’S ASCENT HAS FORGED SUPPLY CHAINS THAT REACH DEEP INTO SOUTH-EAST ASIA.  LOW-COST WORK THAT DOES LEAVE CHINA GOES MAINLY TO SOUTH-EAST ASIA, ONLY REINFORCING FACTORY ASIA’S DOMINANCE
  • 4. THREE FORMIDABLE ADVANTAGES IN MANUFACTURING  LOW-COST MANUFACTURING - CHINA BOASTS CLUSTERS OF EFFICIENT SUPPLIERS THAT OTHERS WILL STRUGGLE TO REPLICATE. IT HAS EXCELLENT, AND IMPROVING, INFRASTRUCTURE, AND ITS FIRMS ARE USING AUTOMATION TO RAISE PRODUCTIVITY, OFFSETTING SOME OF THE EFFECT OF HIGHER WAGES  SECOND STRENGTH IS FACTORY ASIA ITSELF. AS WAGES RISE, SOME LOW-COST ACTIVITY IS INDEED LEAVING THE COUNTRY. MUCH OF THIS IS PASSING TO LARGE LOW-INCOME POPULATIONS IN SOUTH- EAST ASIA  THIRD ADVANTAGE - INCREASINGLY A LINCHPIN OF DEMAND. AS THE SPENDING AND SOPHISTICATION OF CHINESE CONSUMERS GROWS, FACTORY ASIA IS GRABBING A BIGGER SHARE OF HIGHER- MARGIN MARKETING AND CUSTOMER SERVICE
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10. One Two Three Four Five Five Ten ONE •CHINA WILL DEVELOP TO A MANUFACTURING POWER. TWO •INTEGRATING INFORMATION TECHNOLOGY AND INDUSTRY TO ACHIEVE THE GOAL. THREE •ACHIEVING THE GOAL THROUGH A "THREE STEP" STRATEGY FOUR •FOUR PRINCIPLES FIVE •FIVE GUIDELINES FIVE •FIVE PROJECTS TEN •10 KRY SECTORS
  • 11. One  A TARGET:  CHINA WILL DEVELOP INTO A MANUFACTURING POWER.
  • 12. Two  INTEGRATING INFORMATION TECHNOLOGY AND INDUSTRY TO ACHIEVE THE GOAL
  • 13. Three  "THREE STEP" STRATEGY, AND EACH STEP WILL REQUIRE ABOUT TEN YEARS.  IN THE FIRST STEP, BY 2025 CHINA WILL BE RANKED AMONG THE MANUFACTURING POWERS;  IN THE SECOND STEP, BY 2035 CHINA'S MANUFACTURING SECTOR WILL REACH A GENERALLY MODERATE LEVEL AMONG THE MANUFACTURING POWERS;  THE THIRD STEP WILLMEAN TRANSFORMING CHINA INTO A LEA DING MANUFACTURING POWER BY 2049, WHICH WILL BE THE 100TH ANNIVERSARY OF THE FOUNDING OF THE PEOPLE'S REP UBLIC OF CHINA.
  • 14. Four  FOUR PRINCIPLES  MARKET-ORIENTED AND GOVERNMENT- GUIDED;  BASED ON THE PRESENT AND HAVING A LONG- TERM PERSPECTIVE;  COMPREHENSIVELY PRESSING FORWARD AND MAKING BREAKTHROUGHS IN KEY AREAS;  INDEPENDENT DEVELOPMENT AND WIN- WIN COOPERATION.
  • 15. FIVE  FIVE GUIDELINES:  INNOVATION-DRIVEN,  GIVING PRIORITY TO QUALITY,  GREEN DEVELOPMENT,  OPTIMIZING STRUCTURE, AND  TALENT ORIENTED
  • 16. FIVE  FIVE PROJECTS:  ESTABLISHING A MANUFACTURING INNOVATION CENTER
  • 17.
  • 18. Ten  NEW INFORMATION TECHNOLOGY,  NUMERICAL CONTROLTOOLS AND ROBOTICS,  AEROSPACE EQUIPMENT,  OCEAN ENGINEERING EQUIPMENT AND HIGH-TECHSHIPS,  RAILWAY EQUIPMENT,  ENERGY SAVING AND NEW ENERGY VEHICLES,  POWER EQUIPMENT,  NEWMATERIALS,  BIOLOGICAL MEDICINE AND MEDICAL DEVICES, AND  AGRICULTURAL MACHINERY.