The Ministry of Industry and Information Technology (MIIT) formulates industrial policies in China.
This Ministry is responsible for the formulation of policies relating to the manufacturing sector and determines China’s industrial planning and policies and supervises the sector.
Industrial policies in China
The Chinese government maintains significant control over the country’s economy. This control is exercised through industrial policies, such as resource allocation and preferential treatment. In addition, it manages monetary policy, exchange rates and the payment of foreign currency obligations.
For more than three decades, the government has implemented economic and market reforms. These reforms have allowed greater private ownership of assets and reduced interference in market forces. However, the Chinese government also attempts to influence markets in a variety of ways.
For example, it uses exchange controls, direct investment and restrictions on certain types of transactions, such as short sales. It also limits or prohibits certain investors, including foreign investors, from selling stakes in Chinese companies. These measures are intended to maintain some control over the financial market.
In this context, such actions could negatively impact The China Fund. This could make it difficult for the Fund to achieve its investment objective.
On the other hand, the National Development and Reform Commission (NDRC) plays a key role. It is responsible for coordinating the development of the industrial sector and designing modernization strategies.
Manufacturing production
According to the World Trade Organization (WTO), China has clear objectives for its manufacturing sector. Among them is the development of higher value-added and knowledge-based activities. This approach is driven mainly through innovation.
In addition, environmental considerations play a key role. For example, the aim is to reduce energy consumption and minimize pollution.
The “Made in China 2025” initiative, launched in 2015, remains the leading strategy to modernize the manufacturing sector. Its goal is ambitious and divided into clear stages.
First, to help China consolidate itself as a strong manufacturing power by 2025. Then, to reach the middle tier of global manufacturing powers by 2035. Finally, to position itself as a world leader in manufacturing by 2050.