A report examining the effects that the China Manufacturing 2025 (CM2025) industrial policy initiative is having on China’s domestic economy and on its international relations was released by the European Union Chamber of Commerce in China (European Chamber) in Guangzhou on April 12.
The report, China Manufacturing 2025: Putting Industrial Policy Ahead of Market Forces, analyses the initiative’s goals, which include achieving domestic and international market-share targets in ten industries, attaining self-reliance for key components and turning the concept of ‘indigenous innovation’ into reality.
Jorg Wuttke, European Chamber president, said that China is in the way of trying to establish innovation by competition, and Guangdong is the easier place in the whole of China to talk about this because it has fewer SOEs which leaves more room for innovative private companies to develop.
“I’m very pleased to see the latest development of high-tech and automation industry in Guangdong, like unmanned factory” said Wuttke. “But it is not just robotics that is the answer, it is also better trained people and better educated people for the work force.”
European Chamber President Jörg Wuttke (L) and Chairman-elect of South China Chapter of the European Chamber George Lau (R)
George Lau, Chairman-elect of South China Chapter of the EU Chamber in China, introduced the dual system for vocational education in Germany.
“In Europe, we have a very strong emphasis of that not just in the top end but also in the medium education level. Very practical education of people that they work in the flow shop not just in high-rises,” said Wuttke, who thought China can learn from this kind of education system. "Those who have the potential to engage in intellectual work will apply for universities and those with strong practical ability will be sent to technique schools. Thus labor force can joint with manufacturing industry seamlessly. Skilled people are the core for the CM2025,” he added.
Wuttke indicated that he felt the market condition in Guangdong is more flexible than other provinces in China which provides advantages for its enterprises. He also believed that the acquisition of German industrial robotics company Kuka conducted by Guangdong-based manufacturer Midea would have a bright future.
About the European Union Chamber of Commerce in China
The European Union Chamber of Commerce in China (European Chamber) was founded in 2000 by 51 member companies that shared a goal of establishing a common voices business sectors of the European Union and European businesses operating in China. It is a members-driven, non-profit, fee-based organization with a core structure of 45 working groups and fora representing European business in China. The European Chamber is recognized by the European Commission and the Chinese authorities as the official voice of European business in China.