The Made in China 2025 strategy: Perceptions and reservations of China’s state capitalist economic model

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Abstract

The Made in China 2025 (MIC 2025) strategy was introduced in 2015 and aims to reduce Chinese reliance on foreign technologies by adopting the import-substitution policy. The United States (US) considers China’s super-ambitious industrial policy as a serious threat and is concerned about its high-tech industries, especially as Chinese technological firms are receiving generous government subsidies and tax cuts. The US, thus, entered a direct trade war with China to protect its domestic industries from unfair and inequitable competition. The US-China trade war has seriously shifted and interrupted global supply chains, thus creating a situation of uncertainty and instability for businesses that import and export US and Chinese products. The article is policy-based, and we reviewed the existing literature in depth. We addressed the industrialization pursuits of China under the MIC 2025. Furthermore, the article has analyzed the impact of the US-China trade war on global supply chains. Finally, the article has many implications; the article provides the possible policy routes for the governments of developing countries and regulators to address the reservations of developed countries regarding state-sponsored industries.

Keywords: China, United States, Trade War, State Capitalist Economic Model

Authors’ individual contribution: Conceptualization — F.N., K.A.S., and U.K.; Validation — F.N. and K.A.S.; Investigation — F.N. and K.A.S.; Writing — Original Draft — F.N., K.A.S., and U.K.; Writing — Review & Editing — F.N.; Funding Acquisition — F.N. and K.A.S.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: O3, O34, O38

Received: 18.07.2023
Accepted: 13.03.2024
Published online: 18.03.2024

How to cite this paper: Nawaz, F., Abu Saleem, K., & Kayani, U. (2024). The Made in China 2025 strategy: Perceptions and reservations of China’s state capitalist economic model [Special issue]. Corporate & Business Strategy Review, 5(1), 432–439. https://doi.org/10.22495/cbsrv5i1siart16