^{Chinese President Xi Jinping waits to welcome French Prime Minister Manuel Valls at the Great Hall of the People in Beijing on Jan. 30, 2015Fred Dufour—Reuters}

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Initiated in 2015, China's "Made in China 2025" plan aimed to transform the nation into a global leader in high-tech industries. While the initiative has spurred significant progress in certain sectors, challenges remain in achieving full technological self-sufficiency.​

Achievements and Shortcomings

According to a recent report by the European Chamber of Commerce in China, out of ten strategic sectors targeted by the plan, China has attained clear technological leadership in:​

• Shipbuilding
• High-speed rail
• Electric vehicles (EVs)​

However, the country has fallen short in areas such as aerospace, high-end robotics, and increasing the manufacturing value-added growth rate. For instance, the growth rate of manufacturing value-added reached 6.1% in 2024, down from 7% in 2015, and below the target of 11%.​

The C919 Aircraft: Progress and Dependence

China's domestically developed C919 aircraft, produced by the Commercial Aircraft Corporation of China (COMAC), symbolizes both progress and ongoing reliance on foreign technology. While the C919 has entered commercial service, nearly half of its core components, including engines and avionics, are sourced from U.S. and European suppliers . Efforts are underway to develop indigenous alternatives, such as the CJ1000 engine, but these are not expected to be commercially available before 2030.​

Research and Development Investments

China has made strides in increasing its research and development (R&D) investments. Nationwide, manufacturers have reached the target of allocating 1.68% of operating revenue to R&D. Companies like Huawei have been at the forefront, prompting comparisons with global counterparts. For example, Dutch semiconductor equipment firm ASML spent 15.2% of its net sales on R&D in 2024, while Nvidia's ratio was 14.2%.​

Challenges: Overcapacity and Global Tensions

The rapid expansion in sectors like electric vehicles has led to overcapacity and intense competition, often resulting in price wars. This phenomenon, referred to as "involution" in China, has seen companies striving to outdo each other, sometimes at the expense of profitability. Moreover, China's push to ascend the manufacturing value chain has heightened global concerns about security and fair competition.​

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While "Made in China 2025" has propelled China forward in several high-tech industries, the journey toward complete technological self-reliance continues. The initiative's mixed outcomes underscore the complexities of industrial transformation in a globalized economy.

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