Saturday, February 18, 2017

Made in China 2025 - Bloomberg

https://www.bloomberg.com/news/articles/2017-02-16/how-to-win-a-trade-war-with-china

...Beijing adopted a new industrial policy in 2015, called Made in China 2025, which intends to upgrade manufacturing capabilities for high-tech products including medical devices, electric cars, and robots. ...

... If China designs the next groundbreaking product with its own software and chips and under its own brand, then the country can truly undercut America’s main economic strengths and challenge its global leadership....

A better option would be carefully targeted tactical weapons. One method is to use reciprocity as a guideline—in other words, match Beijing’s restrictive policies with similar measures on Chinese activities in the U.S. That could protect vital know-how from falling into Chinese hands, press Beijing to open its market, and counteract undue advantages the government gives Chinese business. For instance, in sectors where China throws up barriers to foreign companies, Washington should impose the same on Chinese companies in the U.S. Washington could also take a page from Beijing’s playbook by identifying and protecting critical technologies and strategic companies. “U.S. policies should expand to take into account the differences between the U.S. and Chinese systems,” argues James McGregor, author of One Billion Customers: Lessons From the Front Lines of Doing Business in China.

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