President Xi Jinping's administration is currently considering an updated version of the country's manufacturing blueprint, according to a new report.
The proposal aims to bolster China's lead in high-tech production, which could escalate friction with the United States as Washington promotes economic rebalancing and strategic decoupling.
What Happened: Chinese officials are working on an updated version of the "Made in China 2025" initiative, according to a report by Bloomberg. The initiative was first announced ten years ago, focusing on accelerating domestic manufacturing in major sectors like semiconductors and electric vehicles.
The objective behind the plan is to maintain China's industrial dominance, and it will potentially align with the country's next Five-Year Plan, due in 2026.
The Five-Year Plan is expected to maintain the key role of manufacturing in the economy. Officials are also deliberating on whether to aim for consumption-related GDP targets, though current sentiment reportedly leans against it.
See Also: Apple Raises iPhone Trade-In Prices In China To Fend Off Huawei, Xiaomi Amid Lagging Sales
Why It Matters: This report indicates that China plans to oppose U.S. efforts to divert its economy toward consumption. President Donald Trump's administration recently increased tariffs to 145% before lowering them after Geneva talks.
U.S. officials like Treasury Secretary Scott Bessent have called for joint rebalancing efforts, but Beijing's focus on industrial self-reliance seems to be unmoving.
"We must keep strengthening the manufacturing sector, adhere to the principles of self-reliance and self-improvement, and master key core technologies," Xi said during a May factory visit.
This report comes on the heels of a statement from finance ministers and central bankers from the G7, pledging to tackle "excessive imbalances" in global trade, referring to “nonmarket policies and practices”, a phrase typically associated with China.
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