THE MADE IN CHINA 2025 STRATEGY: PERCEPTIONS AND RESERVATIONS OF CHINA’S STATE CAPITALIST ECONOMIC MODEL

Abstract

The Made in China 2025 (MIC 2025) strategy was introduced in 2015 and aims to reduce Chinese reliance on foreign technologies by adopting the import-substitution policy. The United States (US) considers China’s super-ambitious industrial policy as a serious threat and is concerned about its high-tech industries, especially as Chinese technological firms are receiving generous government subsidies and tax cuts. The US, thus, entered a direct trade war with China to protect its domestic industries from unfair and inequitable competition. The US-China trade war has seriously shifted and interrupted global supply chains, thus creating a situation of uncertainty and instability for businesses that import and export US and Chinese products. The article is policy-based, and we reviewed the existing literature in depth. We addressed the industrialization pursuits of China under the MIC 2025. Furthermore, the article has analyzed the impact of the US-China trade war on global supply chains. Finally, the article has many implications; the article provides the possible policy routes for the governments of developing countries and regulators to address the reservations of developed countries regarding state-sponsored industries.