Page 25 - ARUBA TODAY

BUSINESS Friday 13 april 2018
A25

Made in China 2025 plan irking Beijing's trading partners

By JOE McDONALD jobs and restoring China's
BEIJING (AP) — U.S. officials historic status as a leading
have a name for their frus- culture. "Made in China
tration with Beijing's tech- 2025" is the first stage in a
nology ambitions: "Made in plan to make China a glob-
China 2025." Issued in 2015, al manufacturing power
it calls for China to develop by 2049, the centenary of
its own global competitors the communist revolution.
in fields from information Targets include making 70
technology to electric cars percent of components
to pharmaceuticals. The and materials domestically
U.S. Trade Representative's and establishing 40 "inno-
Office cited "Made in Chi- vation centers" by 2025.
na 2025" in announcing last The Chinese government
week a $50 billion list of Chi- has promised the equiva-
nese goods targeted for lent of hundreds of billions
President Donald Trump's of dollars in support. A de-
tariff hike. Many coun- cade ago, foreign com-
tries have similar plans. But panies complained Beijing
American officials contend was trying to squeeze them
China's tactics include out of promising fields. They
subsidizing local compa- say "Made in China 2025"
nies, shielding them from is especially alarming be-
competition and pressur- cause it declares that new In this Oct. 21, 2016, file photo, Chinese students work on the Ares, a humanoid bipedal robot de-
ing foreign companies to industries will be controlled signed by them with fundings from a Shanghai investment company, displayed during the World
hand over technology. The by wholly Chinese-owned Robot Conference in Beijing.
plan reflects Beijing's "inten- champions. Associated Press
tion of seizing economic A deputy Chinese com-
leadership in advanced merce minister tried to de- HOW ARE THEY DOING IT?: exchange for market ac- In a report last year, the
technology," said the USTR fuse such criticism by telling Business groups and foreign cess in violation of Beijing's European Union Chamber
statement. "Made in China reporters last week "Made governments say "Made World Trade Organization of Commerce in China
2025" isn't the first time Bei- in China 2025" is open to in China 2025" relies heav- commitments. Other offi- warned the plan also could
jing's technology and in- foreign companies. ily on subsidies and market cial tools include govern- backfire if companies that
dustry plans have rankled ___ barriers that hamper com- ment procurement rules make lackluster products
trading partners who say WHICH INDUSTRIES DOES IT petition. that favor Chinese-made but are supported by sub-
they violate promises to TARGET?: The plan draws heavily technology in possible sidies drive genuinely in-
open markets and treat The full list of "Made in Chi- from Germany's "Industry violation of Beijing's WTO novative rivals out of the
foreign and Chinese com- na 2025" industries: Informa- 4.0" strategy. But the Ger- pledges, and subsidies and market.q
panies equally. Below are tion technology, numerical man plan is based on mar- acquisition of technology
some details on the issue: control machinery and ket forces and allows a from abroad.
___ robotics, aerospace and role for foreign companies, ___
WHAT DO CHINESE LEAD- aviation equipment, mari- while Beijing's goal is to cre- WHO OBJECTS AND WHY?:
ERS WANT?: time engineering equip- ate Chinese champions. Foreign governments and
Communist leaders want to ment and high-tech vessel Economists and lawyers say business groups say the
transform China from a low- manufacturing, advanced China's tools include press- plan improperly subsidizes
cost factory into a creator rail equipment, energy-sav- ing foreign companies to Chinese industries and shuts
of profitable technologies ing and electric vehicles, hand over technology in out foreign competitors.
in areas including electric electrical equipment, ag-
cars, solar and wind pow- ricultural machinery, new
er, robotics and informa- materials and biopharma-
tion technology. China as- ceuticals and medical de-
sembles 90 percent of the vices. And that is just the
world's mobile phones and manufacturing strategy.
80 percent of its computers. Previous official science
But it relies on technology and technology plans over
and components from the the past two decades have
United States, Europe and targeted areas including
Japan, which get most of nuclear power, genetics,
the profit. Its leaders want deep sea equipment, sat-
China to capture more of ellites and lasers.
that, securing better-paid ___