According to the China Daily, on 19 December, 2016, China's State Council issued fresh guidelines on support for strategic new industries embodied in the 13th Five Year Plan (2016-20) which are slated to produce one million new jobs each year by 2020. Five new pillar industries each with output of 10 trillion yuan ($1.44 trillion) are targeted : information technology, bio-industry, green and low-carbon industry, high-end manufacturing, and digital and creative industry.
"The government will provide policy support in managerial improvements, intellectual property rights and financing. The government will also help establish an industrial innovation system and increase efforts to cultivate and give incentives to talented people", according to the China Daily.
On 19 May, 2015, the State Council released China's new manufacturing strategy "Made in China 2025" calculated to grow China into becoming the world's leading manufacturing giant by 2049, the centenary of the founding of the People's Republic of China. Report in the China Daily
The strategy leverages China''s four advantages - Market, Enterprises, Strategy and Talent. It will focus on 10 key sectors: New Information Technology; Numerically-controlled Equipment; Aerospace systems; High-tech vessels; High-Speed Rail; Energy Conservation; New Materials; Medical Devices; Agricultural Machinery; Power Generation.
Download 'Made in China 2025' to focus on ten key sectors - People's Daily Online
The strategy characterised by marrying manufacturing and information technology, will be guided by Five Principles - innovation, quality, green development, optimising structure, and talent. It is mandated to achieve significant milestones by 2025 and 2035.
It will start with big projects including national manufacturing innovation centres, intelligent manufacturing including innovative high-end equipment, core electronic devices, high-end universal chips, numerically-controlled machinery, and large airplanes. According to the plan, there will be 15 such innovation centres by 2020 and double this after another five years. Click here
A pictorial diagram highlighting China's new manufacturing strategy follows -
The transition path to high-technology manufacturing is unlikely to be smooth. A great deal of reliance on China's current manufacturing powerhouse will remain if sufficient jobs are to turn the teeming millions of factory workers into consuming middle-class. Moreover, the global supply and production chain has become more and more diffused. Nevertheless, competitive manufacturing neighbors like Vietnam, Indonesia and Cambodia remain part and parcel of "Factory Asia" centred on China as the central hub of a global production and value chain. See "Made in China - Global Manufacturing" in The Economist (14 March, 2015)
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