After Made in China 2025, are foreign firms at risk of losing tech edge, market share?

With Beijing having spent the past decade finding ways to bolster the nation’s technological independence through its “Made in China 2025” (MIC2025) initiative, European companies with a stake in the world’s second-largest economy have watched with growing concern – fearful of becoming further marginalised.

In the pursuit of China’s technological strides – aiming to be a global leader in some sectors, as outlined in MIC2025 plans – foreign companies are sometimes seen as a valuable bridge to more advanced tech. But China’s rapid progress has fuelled concerns that foreign firms may be excluded once that complementary edge is gone, the European Union Chamber of Commerce in China has said in a report titled “Made in China 2025: The Cost of Technological Leadership”.

“Once Chinese companies have comparable technology, market-access restrictions or an inability to compete can lead to a significant loss of market share for foreign companies,” said the chamber’s report, released on Wednesday.

Although China has achieved a high degree of self-reliance in only a few sectors, the chamber noted that China has been intent on undoing dependencies on key foreign technology and that it was likely to continue marginalising foreign companies in strategic sectors.

“This will result in a less globalised world, with China further isolated,” the chamber report warned. “It will also likely continue to trigger external actions that cause more damage to both China’s economy and its global standing.”

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Dancing robots take the stage at China’s Spring Festival Gala performance

Dancing robots take the stage at China’s Spring Festival Gala performance