China’s President Xi Jinping has stepped up calls for greater “self-reliance” in the country’s manufacturing sector, emphasising a strategy that critics say has fuelled tensions with trading partners.
Economists have called for Chinese policymakers to shift a long-standing focus on high-tech production to boost weak domestic demand, which has left the country dependent on manufacturing and exports for growth. They have also argued that Beijing’s emphasis on production over consumption has helped drive global economic imbalances, leading to the trade war with the US.
But Xi on Tuesday said China’s focus on industrial output had been the right decision.
“From relying on imports of foreign matches, soap, and iron in the past, we have now become the world’s largest manufacturing country,” he said, according to state news agency Xinhua, adding: “We need to keep improving our manufacturing sector, insist on self-reliance and self-improvement [and] master key core technologies.”
China’s emphasis on self-reliance predates the current tensions with US President Donald Trump. In 2015, Xi launched Made in China 2025, a government programme aimed at expanding domestic market share in strategic industries through the use of subsidies and policy support.
That drive has accelerated since Trump’s first term, when the US president launched the initial phase of his trade war and introduced export controls on advanced technologies, particularly those related to semiconductors.
Western chambers of commerce in the country have also voiced mounting complaints in recent years that China’s industrial and procurement policies systematically favour domestic producers and reduce opportunities for foreign companies.
Under Made in China 2025, Beijing set specific market share targets for advanced technologies such as electric vehicles, high-speed trains, telecommunications, robotics and other areas to improve the country’s industrial self-sufficiency.
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China’s President Xi Jinping has stepped up calls for greater “self-reliance” in the country’s manufacturing sector, emphasising a strategy that critics say has fuelled tensions with trading partners.
Economists have called for Chinese policymakers to shift a long-standing focus on high-tech production to boost weak domestic demand, which has left the country dependent on manufacturing and exports for growth. They have also argued that Beijing’s emphasis on production over consumption has helped drive global economic imbalances, leading to the trade war with the US.
But Xi on Tuesday said China’s focus on industrial output had been the right decision.
“From relying on imports of foreign matches, soap, and iron in the past, we have now become the world’s largest manufacturing country,” he said, according to state news agency Xinhua, adding: “We need to keep improving our manufacturing sector, insist on self-reliance and self-improvement [and] master key core technologies.”
China’s emphasis on self-reliance predates the current tensions with US President Donald Trump. In 2015, Xi launched Made in China 2025, a government programme aimed at expanding domestic market share in strategic industries through the use of subsidies and policy support.
That drive has accelerated since Trump’s first term, when the US president launched the initial phase of his trade war and introduced export controls on advanced technologies, particularly those related to semiconductors.
Western chambers of commerce in the country have also voiced mounting complaints in recent years that China’s industrial and procurement policies systematically favour domestic producers and reduce opportunities for foreign companies.
Under Made in China 2025, Beijing set specific market share targets for advanced technologies such as electric vehicles, high-speed trains, telecommunications, robotics and other areas to improve the country’s industrial self-sufficiency.