Professor Neale O'Connor is an expert on Chinese business management practices. He has a PhD and qualifications from CPA Australia. He is the founder and director of the China Supplier 1000 Project and Ricebox Limited. The document discusses China's "Made in China 2025" plan to transform the country into a global manufacturing leader through innovation and high-tech industries. It outlines challenges for Chinese suppliers, such as small size and quality mindset, and factory management challenges. It also summarizes eight mega trends for suppliers and buyers in China, including the need for collaboration, compliance, and protecting intellectual property.

1. PROFESSOR NEALE O'CONNOR
Speaker’s Background
 PhD; FCPA; CPA Australia; Expert
on the management practices of
Chinese firms
 Founder and Director of the China
Supplier 1000 Project
 Founder and Director of Ricebox
Limited (Hong Kong)
 Interviewed by Financial Times,
Global Sources, Chief Executive
China and In the Black
-- PROFESSOR NEALE O'CONNOR
Neale O’Connor
www.nealeoconnor.comThe China 2025 plan and the China Factory Landscape
www.Chinasourcingacademy.com

2. Full 75 Slide Deck & 8 Videos – Go to CSA

3. Neale O’Connor
www.nealeoconnor.com
CONTENT
1. Made in China 2025
2. Challenges – Mind of the
Supplier
3. Challenges – Factory
Management
4. Top Eight Mega Trends
for Suppliers and Buyers
The China 2025 plan and the China Factory Landscape
www.Chinasourcingacademy.com

4. Made in China 2025
1. Summary
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5. Made in China 2025-Main Contents
• "One" - a target: 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, and each step will require about ten years.
– In the 1st step, by 2025 China will be ranked among the
manufacturing powers;
– In the 2nd step, by 2035 China's manufacturing sector will reach a
generally moderate level among the manufacturing powers;
– The 3rd step will mean transforming China into a leading
manufacturing power by 2049, which will be the 100th anniversary
of the founding of the People's Republic 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
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6. • The first "Five" - five guidelines:
– innovation-driven,
– giving priority to quality,
– green development,
– optimizing structure, and
– talent oriented
• The second "Five" - five projects:
– Construction of manufacturing innovation centers
– Intelligent manufacturing
– Strengthening industrial infrastructure
– Green manufacturing business
– High-end equipment innovation
• "Ten" - 10 key sectors
Source: 'Made in China 2025' to focus on ten key sectors (People's Daily Online) 08: 32 May 22, 2015
Made in China 2025-Main Contents
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7. SEIs vs “ Made in China 2025” Ten Key Industries vs
Circular Economy
SEI (Strategic Emerging
Industries)
Made in China 2025 Circular Economy
1 Energy Saving & Environmental
Protection
Energy Saving & New Energy
Vehicles
Coal
2 New Energy Power Equipment Power
3 Bio-technology Biological & High Performance
Medical Devices
Steel
4 New Materials New Materials Textile
5 Next Generation IT Next Generation IT Nonferrous Metals
6 Clean-Energy Vehicles Advanced Rail Transportation
Equipment
Petroleum & Petrochemicals
7 High End Manufacturing Advanced CNC Machine Tools &
Robots
Chemicals
8 Agricultural Machinery Food
9 Aerospace Equipment Building Materials
10 Marine Engineering Equipment &
High-tech Ships
Paper
Source: State Council www.Chinasourcingacademy.com

8. Made in China 2025-Mission
• Gives manufacturing a makeover
• From “world’s factory” to “planet’s leading
manufacturing power” by 2025
• Elevate the perception of Chinese goods from “made
in China” to “innovated in China”
• Raising domestic content of core components and
materials to 40% by 2020 and 70% by 2025
• Set a target of SEI-related industries to account for
8% of the economy by 2015 and 15% by 2020
• Establish a 40 billion yuan (US$6.45 billion)
innovation fund to sponsor new business, supporting
the creation of manufacturing innovation centers 15
by 2020 and 40 by 2025
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49.7
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49.6
48.9
49.2
49.4
47.8
47.3 47.2
48.3
48.6
48.2 48.4
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50
51
Manufacturing Malaise
Manufacturing PMI shows that in China the sector is struggling.

9. Made in China 2025-Opportunities
• Support for SMEs and strategic
emerging industries
• Leaner and greener
manufacturing
• Further ongoing anti-monopoly
efforts to eliminate access
barriers across sectors
• More fairness and transparency
• Promote innovation
• Initiate tax reform to reduce the
overall corporate tax burden
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10. Expanded Details of the China 2025 Plan
– Go to CSA

11. Key Challenges
2. Mind of the Supplier
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12. Evidence from
2014-2016 Trade Expo
Interviews
www.chinasupplier1000.com
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14. 2015 - 2016 Infographics of 1300 Suppliers
- Go to CSA

15. Key Challenges
3. Factory Management
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16. Full Profiles of 10 Factories & Videos
– Go to CSA

17. Key Challenges
4. Eight Mega Trends for Buyers and
Suppliers
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18. Eight Mega Trends
Challenges for Suppliers
1. Size – small size enables suppliers to be under radar – but cannot manage economic
shocks (e.g. garment supplier’s vs Topyea – consolidated table manufacturer)
2. Human Resources – Labour turnover, training, incentives, career development
3. Quality Mind Set – know what to do, but how? (incentives for lower rejects –
Aoni)Chinese companies continue to outsource and care less about receiving
inspection (Bluetooth speaker)
4. World Class - Chinese companies with EOM arrangements with international
brands are likely to be the winners of the current manufacturing malaise (e.g. BYD)
5. Relationships and marketing – enabling new opportunities no matter what
core competency, but keep from being the best (e.g. touch screen manufacturer).
6. Ecommerce - Chinese companies are looking for ways to bypass retailers and
distributors in developed countries through E-commerce
7. Ancillary services - Chinese companies are increasingly taking on some of these
ancillary services. For example, warehousing of products is increasingly being done in
China, as is the transporting of products on Chinese made and owned vessels with
Chinese crews.
8. Design - Chinese companies are increasingly investing in design (in China and
Overseas) and looking to bypass their once traditional buyers

19. Eight Mega Trends
Strategies for Buyers
1. C - Compliance is the new norm – not only with developed countries standards,
(+licensing) but with supply chain environmental standards policy initiatives (Water Ten)
and NGO lobby groups.
2. C - Collaboration with suppliers will become increasingly important to (i) speed up
the design to production sequence, whilst (ii) maintain quality and (iii) cost down.
3. L – Logistics and ecosystem will continue to drive factory location.
4. O - Speed to market will continue to be a challenge in where to locate design and
manufacturing.
5. S - Skillset will continue to be emphasized over labour cost in determining factory and
procurement location.
6. I – IP - Blackbox manufacturing will grow to protect designs and packaging,
especially in the ecommerce world. DFM - Buyers need to focus on how to integrate
design for manufacture (DFM) whilst at the same time monitoring quality and protecting
IP.
7. I - IP - Equity joint ventures will continue to evolve as a mechanism to physically
protect IP both home and abroad, especially for higher end brand names and products.
8. T - Trade agreement countries will continue to be a huge attraction and competitor
for factory location and procurement direction – since China does not have trade
agreements with developed economies.

20. PROFESSOR NEALE O'CONNOR
Speaker’s Background
 PhD; FCPA; CPA Australia; Expert
on the management practices of
Chinese firms
 Founder and Director of the China
Supplier 1000 Project
 Founder and Director of Ricebox
Limited (Hong Kong)
 Interviewed by Financial Times,
Global Sources, Chief Executive
China and In the Black
-- PROFESSOR NEALE O'CONNOR
Neale O’Connor
www.nealeoconnor.comThe China 2025 plan and the China Factory Landscape
www.Chinasourcingacademy.com

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