May 28, 2015 at 02:41Top 10 industries of hope. Made in China 2025
Last week, the Chinese government launched the “Made in China 2025” program. In these ten priority sectors, a lot of people are already involved, both in China and elsewhere, so it's time to take a closer look.
You can be sure that the views of many manufacturers and consumers will appeal to them, and this will be followed by a wave of means and a lot of motivation for both. You can be sure that many Chinese companies, both private and state-owned, are already redefining their strategic imperatives in accordance with government priorities and the local potential of industries will grow exponentially.
At the same time, based on previous experience, it can be assumed that success is fundamentally not achievable in all sectors at once, and it is quite possible for Chinese companies to become world leaders only in some industries at the end of the proposed period, through natural selection.
It can also be assumed that consumers will get the maximum benefit during the implementation period of the program, since companies, even so, at least, would still come to the allocated sectors, but the Chinese government has already activated the simplest “magic kick” mechanism. Unlike our country, they are somehow easier to implement government initiatives (for example, someone can remember - we had such a program - "Electronic Russia", we still carry documents and certificates with pieces of paper).
So what are these coolest key industries of the future? Many of them have been mentioned before, and some have already snapped, but let's move on to the words and list them.
Information Technology (yes, cap!)
Beijing, realizing the strategic importance of IT, emphasizes the need to excommunicate China from foreign technology and the importance of independence in the digital world. We should expect significant investments in manufacturers of components and electronics in general, and Chinese companies, with their inherent diligence and zeal, will absorb a lot of international technology companies.
ACS (automated control systems) and robotics
China is already a leader in the budget and middle segments of the industry. Further more. Increased attention to robotics will help to increase productivity, as well as increase the intellectual threshold for entering the business and craft. In the process of implementation, we expect an increase in commodity flow in this segment.
Aerospace engineering
China seeks leadership in satellite technology and hopes to boost domestic passenger aircraft production, although the entire industry is now heavily dependent on foreign technology.
Marine engineering equipment and high-tech marine transport
Now the volume of current investments in infrastructure in the South China Sea is much more than 5 years ago. Hopes for growth and strengthening of the export sector in this space. We will not forget that investors from the east have even come to the Black Sea, and I have no doubt that along with the money came the desire to gain additional experience in implementing such projects.
Railway equipment
China is already exporting its high-speed rail trains to Malaysia, Russia and other countries. Beijing clearly wants to increase its competitiveness in this area, including through the implementation of infrastructure projects of the One Belt, One Road initiative.
Energy conservation and alternative energy vehicles
The combination of the priority "green direction" and the long-standing unmet ambitions of recognition from the whole world of the Chinese automobile industry.
Power equipment
The main goal for China is energy efficiency. Already, they are the largest or one of the consumers of
New materials
The PRC government considers this industry as a key one, giving it the true meaning of the term “invention”. If China becomes a leader in the invention and commercialization of new materials, the phrase "Chinese innovation" will cease to be identical to "Chinese fake." "Made in China" will go into oblivion as a shameful brand.
Medicine and medical devices
Chinese medical equipment manufacturers have shown excellent growth in recent years, and are already starting to export their products. With further government support, this process will accelerate significantly.
Agricultural machinery
Another sector where China seeks to increase efficiency and create an export platform. However, judging by the automotive industry, this is not so simple. The country in which so many people live is simply obliged to be a global agricultural giant.
Some examples from the initiated program
- Increase in expenses for research and development ( R&D ) as a percentage of sales from 0.95% to 1.68%
- Annual increase in labor productivity by 7.5% until 2020 and by 6.5% per year after
- 35% reduction in energy consumption per unit of added value by 2025
- 35% reduction in water consumption per unit of value added by 2025
When I write this, I somehow feel uneasy, because they will just succeed. China, suffering from sanctioned oppression, is still one of the richest countries in the world. So why don't we think about the future, and if we think about it, then we won’t realize it, and if we realize it it’s not right? What is wrong with us?