and why you should know more about Made in China 2025
We all know too well that China is the factory of the world and that “Made in China” is one of the most common labels. At the same time, it often means a cheap and low-quality product. This is going to change within 2025 and within this path, China will invest more than 1 trillion USD per year into foreign technologies and companies. If you want to attract these investments and cut the best deal, you would better understand what is the Mic2025: Made in China 2025 plan.
Since the end of the last century, China had attracted foreign investments to its territory. Foreign companies would move their production to China to exploit its low-cost workforce and favorable policies. The Chinese angle and aim were to attract new technologies and improve its industrial output both in quantity and quality.
China, right now, is the biggest productive country in the world, but the average quality is still to low. Made in China 2025 it’s a detailed plan to change its production paradigm “from big to strong”. To achieve this goal had been identified ten key sectors in which to invest.
The 10 key sectors for Chinese investments
China will invest more than 1 trillion USD per year to achieve its goal to increase the quality of the industrial output. This money will not be scattered on many sectors but in just ten area of focus. If your company is in one of the followings, you might be able to attract Chinese investments and gain a more favorable valuation of your company, because China considers them key and priority sectors.
- High-end CNC machine tools & robots,
- Ocean engineering & high-tech ships,
- Advanced rail transportation,
- New-energy vehicles and equipment,
- Power equipment,
- Agricultural equipment,
- New Materials,
- Bio-pharm & medical
The China Challenge
China, in our opinion, is facing two main challenges that are related to the Made in China 2025:
1. Robot density
The first one, related to the second key sector for Chinese investments, is a pivotal factor improving Chinese quality products. Even though 28% of all robots sold in 2015 were installed in China, its robot density (number of robot per number of workers on production lines) it is far below the global average. This results in slower and low-quality production.
It is forecasted that in 2019, China will absorb around 40% of all the robots installed in the World.
Every year, China spent around 10% of its GDP (the equivalent of the total GPD of Italy) for the environmental recovery. This is how much air, water, and white pollutions cost to China. At the same time, China loses 2% of farmland every year. This is not only an air and water quality issue, but also reflects on food safety and, eventually, on the quality of life. The investments China is doing in this field are enormous.
How startups can contribute to MiC2025 and thrive in China
Based on the MiC2025, Internet plus, AI plus and other programs, we identified few sectors that will be considered pivotal in the transformation of China. Are also sectors where startups all over the world are constantly innovating and developing disruptive technologies.
- FoodTech & AgriTech;
- FashionTech & Design;
- Life science & HealthTech;
- GreenTech & New Energies;
- Smart Manufacturing & Robotics;
- AI & Machine Learning
- Smart Cities/Buildings & Home;
- New Materials.
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