Made in China 2025 and China’s Industrial Policies

Congressional Research Service Informing the legislative debate since 1914 IN FOCUS Updated June 1, 2026 Made in China 2025 and China’s Industrial Policies The People’s Republic of China (PRC or China) aims to gain a global economic and technology leadership position through a range of industrial and science and technology (S&T) plans. Such plans inform PRC economic, industrial, S&T, and foreign trade and investment policies. They also guide PRC government and corporate strategies and activities at the national, local, and global levels. The industries, projects, and technologies featured in the plans reflect co-developed PRC civilian and military priorities that are to receive preferential financial and policy support. PRC plans and related policies feature a heavy government role in directing and funding PRC firms to acquire foreign technology and related capabilities in areas in which China has gaps and the United States has long been a global leader and has strong comparative advantages. Some Members of Congress have expressed concern that PRC policies, if successful, could undermine U.S. technological leadership; further shift advanced technology, production, and research to China; and support China’s advancements, including in defense. The scope and scale of PRC efforts are evident in the amount of state direction and support devoted to these efforts; PRC policies to lead in all parts of global supply chains; and the targeting of foreign capabilities. MIC2025 In 2015, China’s State Council issued Made in China 2025 (MIC2025)—a broad set of industry plans designed to implement key goals set out in China’s Medium- and Long-Term Plan for Science in Technology (MLP) (2006-2020) and reaffirmed in China’s Innovation-Driven Development Strategy, issued in 2016, and the subsequent MLP for 2021-2035. A technology roadmap set targets for 2025-2030. At its core, MIC2025 seeks to boost PRC competitiveness by advancing China’s position in the global manufacturing value chain, “leapfrogging” into emerging technologies where there are not yet defined global leaders, boosting advanced manufacturing, and reducing reliance on foreign firms in core technologies and strategic industries. The plan stresses “indigenous” innovation, a process that can involve the acquisition, absorption, and adaptation of foreign technology by PRC firms, which may later recast these capabilities as their own. This strategy obscures the extent of PRC state ownership and control of PRC firms, the role PRC firms may play in advancing PRC goals, and the role that foreign ties play in developing PRC capabilities. MIC2025 calls for technological breakthroughs in 10 sectors (Figure 1) and supports a range of sector-specific plans. These plans aim to make China a leader in all parts of global value chains and to increase the share of inputs and finished goods produced in China and worldwide by PRC firms. MIC2025 set targets for PRC firms to meet a defined share of domestic demand between 2025 and 2030: agricultural machinery and basic materials (90+%); advanced ships, electric vehicles (EVs), batteries, medical device components, mobile devices, and high-performance computers (80%); and industrial robots and advanced medical devices (70%). Broad goals include the following: By 2025. Boost manufacturing quality, innovation, and labor productivity; reach advanced levels of technology integration; reduce energy and resource consumption; and develop globally competitive firms and industrial centers. By 2035. Reach a level of development on par with global industry at “an intermediate level”; improve innovation; make major technology breakthroughs; lead innovation in specific industries; and set global standards. By 2049. Lead global manufacturing and innovation with a competitive position in advanced technology and industry. Figure 1. China’s Industrial Priorities (2015-2025) The "Made in China 2025" plan highlights 10 sectors: - New generation information technology - High-end computerized machines and robots - Aerospace - Maritime equipment and high-tech ships - Advanced railway transportation equipment - New energy and energy-saving vehicles - Energy equipment - Agricultural machines - New materials - Biopharma and high-tech medical devices Source: Notice of the State Council on Issuing “Made in China 2025,” May 8, 2015, Guofa [2015] No. 28. MIC2025 is part of a continuum of PRC plans and policies that seek to advance core S&T and industrial objectives. For example, China’s 15th Five-Year Plan for National Economic and Social Development (FYP) (2025-2030) and the Outline of Long-Term Goals to 2035 deepens PRC efforts in MIC2025 sectors in which China still has capability gaps (e.g., advanced equipment, tools, and machinery; aerospace; biotechnology; robotics; and semiconductors). See CRS In Focus IF13204, China’s 15th Five-Year Plan: S&T and Economic Priorities. MIC2025 Advancements and Gaps China has emerged as a global manufacturing leader with about a 29% share of global manufacturing output as of 2023. (U.S. output is about 16%; U.S. and European Union combined output is about 33%.)