China’s $450 Billion Future Forge: Building Tomorrow’s Economy Today.

#ChinaEconomy #FutureTech #Semiconductors #AI #QuantumComputing #MadeInChina2025 #TechInvestment #GlobalInnovation #EconomicGrowth #Geopolitics #SupplyChain #SelfReliance

https://medium.com/@jckapadia003/chinas-450-billion-future-forge-building-tomorrow-s-economy-today-2de474facf14

"China’s advances in manufacturing have caused a series of problems, however — both for its economy and for the rest of the world. Critics say one of the main weaknesses is the propensity to produce market distortions — sometimes on a monumental scale.

Local governments, whose leaders are measured by their ability to deliver economic growth, latch on to new central government policies to attract subsidised industries to their areas.
The result is duplication and state-backed overcapacity supercharged by competition that drives prices down — good for consumers but not for corporate profitability or local government finances.

“We have seen these boom-and-bust cycles,” says the EU Chamber in China’s Eskelund, pointing to the solar and battery industries. “The government actually gives policy guidance and . . . everyone seems to be rushing in the same direction.”
The EV sector was a case in point, he says, where only about three out of 112 manufacturers are making a profit. “We see waste at an absolutely colossal scale,” Eskelund says."

https://www.ft.com/content/724431ad-26db-4f6d-acab-ccb3cad11daa

#China #Manufacturing #MadeInChina2025 #Protectionism #PoliticalEconomy

"President Xi Jinping’s government is considering a new version of its master plan to boost production of high-end technological goods, according to people familiar with the matter, signaling its intention to keep a firm grip on manufacturing as President Donald Trump looks to bring more factories back to the US.

Officials are drawing up plans for a future iteration of Xi’s flagship “Made in China 2025” campaign, according to the people, who asked not to be identified discussing deliberations that aren’t public. The plan over the next decade would prioritize technology including chip-making equipment, one of the people said, adding that it may not carry a similar name to avoid drawing criticism from Western countries.

Policymakers who are separately preparing Beijing’s next Five-Year Plan starting in 2026 are looking to maintain the share of manufacturing in gross domestic product at a stable level over the medium to long-term, one of the people said, underlining how the rebalancing of China’s economy sought by the US may prove elusive.

As part of deliberations, officials have discussed whether the next Five-Year Plan should include a numerical target for consumption in terms of its share in China’s GDP, according to the person. They are currently leaning against that, as authorities are concerned they lack effective tools to spur spending by households and are reluctant to commit to a specific number, the person said."

https://www.bloomberg.com/news/articles/2025-05-26/xi-plans-new-made-in-china-effort-even-as-trump-aims-to-boost-us-manufacturing

#China #MadeInChina2025 #Manufacturing #USA #Trump #Tariffs #PoliticalEconomy #Protectionism #TradeWar

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