The Wall Street Journal reported that the Chinese government is working to replace the new plan of “China made 2025” by the trump government. It promised to further open up foreign enterprises to enter the Chinese market in order to quell the Sino US trade war. After the news came out, U.S. stocks rose sharply on Wednesday (12), and Joan rose by more than 300 points.
Sources told the Wall Street Journal that China’s top policy-making body and senior policy advisers are drafting a replacement plan for Made-in-China 2025, which will dilute Beijing’s ambition to dominate the global manufacturing industry and promise to further open up foreign-funded enterprises to the Chinese market.
Bloomberg reports that, according to unnamed sources, the Beijing government may postpone some of its plans for Made-in-China 2025 for 10 years.
In recent months, Chinese President Xi Jinping stopped talking about the Made-in-China 2025 project in his public speech. At a news conference in November, US President trump praised China for shelving the plan. “The Beijing government abandoned the” made in China 2025 “because I found it very insulting. ”
Made-in-China 2025 is the first ten-year strategic plan promoted by the Chinese government in 2015. Its goal is to enable China to surpass Europe, catch up with the United States and catch up with Japan in the future. It will be transformed from a “big manufacturing country” to a “manufacturing power” with advanced technology, involving innovative industries, robots, aviation, energy-saving and energy vehicles, nano-high-tech materials and biochemical fields.
People familiar with the situation said that China now plans to launch a new plan early next year, when the United States and China are expected to speed up negotiations on trade agreements to end the trade war between the United States and China.
Scott Kennedy, a Chinese industrial policy expert at the Washington think tank and the Center for International Strategic Studies, said: “It will be a positive shift for the Beijing government from focusing on fostering the science and technology industry to focusing on improving production efficiency. ”
The report pointed out that the key concession of the new plan was to abandon the market share target of Chinese companies. Made-in-China 2025 aims to increase the domestic content of core components and materials to 40% by 2020 and 70% by 2025 at the expense of foreign competitors.
According to people familiar with the situation, China also plans to introduce a more fair competition policy among state-owned enterprises, private enterprises and foreign enterprises based on the concept of competition neutrality.
However, the content of the new plan may not fundamentally address the concerns of the US side, as many Chinese bureaucrats and state-owned enterprises have profited from the unlimited resources of the government under the protectionism of China’s policy of self-interest, so they do not want to face more fierce market competition obstacles.
The report points out that some U.S. officials may be sceptical about the alternative plan. Trump government officials once viewed the “made in China 2025” as a threat to fair competition, which encouraged the government of Beijing to subsidize domestic enterprises and force foreign partners to transfer technology. Some U.S. officials may think that the revised new plan is more symbolic than substantive.
But if the “made in China” 2025 version is approved by Xi Jinping, the new plan is expected to win the support of foreign companies and persuade the trump Government: Beijing is making meaningful changes to readjust the economy and become more market-oriented.
Since the US President trump and Chinese President Xi Jinping reached a 90 day trade truce in December 1st, the US and China have begun a new round of negotiations. The United States agreed to postpone plans to raise tariffs on China’s $200 billion commodities.
In recent years, China has made frequent concessions, planned to reduce car tariffs, agreed to increase large purchases of soybeans and other crops in the United States, and even announced that it would revise the “Made in China 2025” program, which the United States fears, to revive the dawn of the trade war between the United States and China and to stimulate the rise of major U.S. stock indexes on Wednesday.