CHINA 2025JAYESH 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 TenONE •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 AMO

NG  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 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.

FIVE

FIVE GUIDELINES:  INNOVATION-DRIVEN,  GIVING PRIORITY TO QUALITY,  GREEN DEVELOPMENT,  OPTIMIZING STRUCTURE, AND  TALENT ORIENTED

FIVE

FIVE PROJECTS:  ESTABLISHING A MANUFACTURING INNOVATIO

N 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.