Miao Gives Press Conference on China Manufacturing 2025

After the European Chamber of Commerce released a report on industrial policy and China Manufacturing 2025, Miao Wei, Minister of MIIT, addressed the report at a press conference during the Two Sessions. Miao explained that there is a misunderstanding about China’s industrial policy, noting that they will continue to let the market play a decisive role in the allocation of resources, staying in line with the commitments made at the 3rd plenary session of the 18th party congress. He also made reference to developed countries' export restrictions placed on high tech goods exporting to China, claiming that China is still a developing country and has a large need for advanced technology and products. One of the main goals of implementing China Manufacturing 2025 is to upgrade manufacturing to satisfy domestic market needs because there is still a lot of technology they need in order to sustain economic growth and protect national security interests.  

The second point Miao made was in reference to the development target, in particular, the projected domestic product market share. He explained that the targets are merely projections and they should not be taken literally, and certainly are not ways for the government to dictate market.
 
When addressing equal treatment for domestic and foreign companies under China Manufacturing 2025, Miao used the example of New Energy Vehicles. Market entry requirements are not there as a means of forced technology transfer, but instead ensure that the company applying for incentives possesses the necessary technology to produce the products. This prevents people from taking advantage of the system and using subsidies to set up manufacturing facilities without knowhow, which would damage the market and abuse IPR in many cases. He said that it doesn't matter if R&D facilities are located inside or outside of China, as long as the company has the technology then they may enter the market. Foreign companies continue to question where their place is in China’s industrial policy, and from recent policies, including the NDRC and MOFCOM released Catalog of Competitive Industries in Central and Western Regions for Foreign Investment,  there are now more incentives for foreigners to invest in auto manufacturing, robotics and even telecoms within scope of existing policies.