Overview

• China is working on a successor to its 'Made in China 2025' initiative, aiming to strengthen its lead in high-tech manufacturing sectors.
• The updated strategy will focus on semiconductors, chip-making equipment, and other strategic technologies to reduce reliance on foreign supply chains.
• Chinese policymakers are resisting U.S. demands to reduce industrial subsidies and shift toward a consumption-driven economy.
• The U.S. recently imposed tariffs on Chinese goods, including semiconductors and electric vehicles, with rates briefly reaching 145%.
• China's upcoming Five-Year Plan, expected in March 2026, will emphasize 'new productive forces' such as artificial intelligence and electric vehicles.