Made in China 2025 Plan

MADE IN CHINA 2025 China Manufacturing in the 21st Century - Opportunities for UK-China Partnership www.cbbc.org www.ukti.gov.uk Contents Forewords 02 Executive Summary 04 Background to Made in China 2025 06 The State Council’s Plan 08 Ten Priority Sectors 09 Five Nationwide Initiatives 12 Specific Objectives 13 Opportunities by Sector 14 Opportunities by Location 15 Opportunities for UK Companies 17 Challenges for UK Companies 18 Conclusions & Next Steps 20 Appendix 22 Contacts 23 www.ukti.gov.uk www.cbbc.org | 01 Foreword Dr Mark Wareing Director Advanced Manufacturing & Transport UKTI China, British Embassy, Beijing UK Trade & Investment Together we provide a comprehensive service for British (UKTI) is the part of companies who are looking at the incredible opportunities UK Government that is in China and we bring more Chinese companies to the UK responsible for growing to join the UK’s leading innovation landscape to create the the UK’s exports and products for the future, for China and the world. attracting investment into the UK. Made in China 2025 is a truly exciting strategy and it is fantastic to see how closely the skills, experience and In terms of UK exports, capability of the UK’s industrial base align with China’s China is already our ambitions. In all of the 10 priority sectors China has second largest single identified, the UK is a world leader with the expertise to export destination with help China reach its goals. exports of £18.7 billion, of which £15.5 billion (83%) We see the next stage of China’s emergence as an economic are manufactured goods superpower in its ambition to design and make the products which demonstrates the of the future required not only by the Chinese consumer, but importance of manufacturing to the UK economy. consumers around the world. Chinese businesses and consumers are demanding the best Creating products with greater intrinsic value and quality, in design and quality and they recognise our long history of and incorporating our environmental responsibilities are producing the very best in products, services and brands. areas where our world leading academic institutions, our innovation and catapult centres, the rich open and UKTI China is the largest in the UKTI network - we collaborative new product development networks and have over 150 staff across our Beijing Embassy and our our open and supportive business climate can take a British Consulates in Shanghai, Guangzhou, Chongqing leading role. and Wuhan. We work closely with UKTI Hong Kong, the Embassy’s Outreach team and our service delivery partner CBBC. Mark Wareing Director Advanced Manufacturing & Transport Made in China 2025 is a truly exciting strategy and it is fantastic to see how closely the skills, experience and capability of the UK’s industrial base align with China’s ambitions. 02 | www.ukti.gov.uk Foreword Stephen Phillips Chief Executive China-Britain Business Council I am delighted to introduce Made in China 2025 is ambitious and wide-ranging. It the latest report from the focuses on 10 priority sectors and in each of these we China-Britain Business believe there are going to be new opportunities for British Council, prepared in business. Each sector is analysed in detail in the report, collaboration with UK Trade including identifying how UK companies can get involved. It & Investment, examining prioritises five nationwide initiatives with clear objectives to: the implications for UK business of the Chinese • establish new innovation centres Government’s Made in • establish new research bases China 2025 Initiative. This is • implement smart manufacturing projects a highly ambitious initiative • implement green manufacturing projects to comprehensively • prioritise high-end equipment manufacturing upgrade, consolidate and balance China’s Again it is clear that the UK has so very much to offer in manufacturing industry. these five areas, with our enviable R&D and innovation credentials both in industry and education. Recognising the world-leading strengths of the UK, this report sets out to help companies and institutions Opportunities will be across the whole country. Indeed understand both the opportunities and, indeed, challenges most provinces and cities have already published action that this initiative will present. The UK is already plans for local implementation. world leader in so many relevant fields and this report demonstrates that there will be a wide range of new Whilst we see tremendous opportunity, we also recognise opportunities including: that there will be challenges. These may include IP protection, over-supply and over-investment, pace of • Technical and management consultancy services change and favouring of indigenous innovation amongst • Standards, testing, compliance and certification others. It will be important to do comprehensive due • Joint R&D and joint bidding diligence and carefully select projects and partners. The • Financing and investment teams at CBBC and UKTI are here to help. • Outbound investment • Financial and professional services • Design Stephen Phillips • Education and skills training Chief Executive This is a highly ambitious initiative to comprehensively upgrade, consolidate and balance China’s manufacturing industry. www.cbbc.org | 03 Executive Summary Overview There are also 10 designated priority • Standards, testing, compliance sectors: and certification to support Made in China 2025 (MIC 2025) is Chinese companies to comply a national strategy, announced by • Advanced marine equipment and with and influence international China’s State Council in May 2015, to high-tech vessels; standards and achieve international comprehensively upgrade, consolidate • Advanced rail and equipment; certifications; and balance China’s manufacturing • Agricultural machinery and industry, turning it into a global technology; • Joint R&D and joint bidding (in China manufacturing power able to influence • Aviation and aerospace equipment; and globally) as a channel for British global standards, supply chains and • Biopharmaceuticals and high-end companies to build early-stage drive global innovation. It has very medical equipment; partnerships with new and growing specific objectives to 2025 and also in • Integrated circuits and new IT Chinese enterprises; the longer term with general objectives technology; onwards to 2049 (the 100th anniversary • High-end electronic equipment; • Financing and investment where of the founding of the People’s Republic • High-end manufacturing control Chinese companies seek to grow of China). machinery and robotics; through private equity, venture • Low and new-energy vehicles; capital investments and listing The MIC 2025 initiative is to some • New and advanced materials on public technology exchange extent inspired by Germany’s Industry markets; 4.0 with reference to the inclusion New Opportunities of SMEs in the supply chain, and • Outbound investment to work with extensive use of new information Despite its overt theme of Chinese Chinese partners on third-country technologies. However, MIC 2025 technological independence, MIC projects and UK-based R&D centres; extends much more widely to address 2025 is in reality a source of great issues of quality, consistency of output, opportunity for UK companies that • Financial and professional services, safety, and environmental protection, can help China to implement the including accounting, auditing, which are all considered strategic changes required. The UK has extensive consulting and HR, where Chinese challenges to China’s development. expertise in all areas of manufacturing projects have an overseas element; The initiative is intimately connected and experience of moving up the value to the government’s long-term Chinese chain and transferring basic low-cost • Industrial and architectural Dream of a harmonious and moderately manufacturing to new locations. design, virtual reality modelling, prosperous society. It is the proposed Britain is a leader in process innovation, prototyping and testing to build answer to China’s declining competitive standardisation, efficiency, productivity, better infrastructure and to increase advantages in manufacturing, and and integration all of which will be output quality and efficiency; oversupply in some industries. of great value to Chinese companies during MIC2025 implementation. • Education services to build The MIC 2025 plan details nine vocational skills and expertise strategic tasks, including: to encourage There are many specific opportunities in standards, management and innovation and the use of digital for UK companies such as: software. technology in manufacturing; to improve the quality and efficiency • Technical and management of manufacturing; to enforce green consultancy services to improve manufacturing methods; to globalise productivity, quality and efficiency Chinese brands; and to improve and to minimise risks through service-oriented manufacturing and process design and optimisation, and manufacturing-service industries. operation and project management; 04 | www.ukti.gov.uk UK companies may also need to review their ability to react to the sheer pace of change in some industries to provide solutions for fast growing Chinese players. MIC 2025 is a national strategy and as As China moves to achieve a level such there will be opportunities across of technological independence, we China. Furthermore, in conjunction firmly believe that UK companies with China’s Belt and Road Initiative, will actually find more opportunities opportunities may

Load more