Chinese Manufacturing in the Shadow of the China–US Trade War
Economic Affairs, 2018, vol. 38, issue 3, 307-324
A trade war between China and the US has been looming since March 2018, and effectively started on 6 July. A key to this dispute is the ‘Made in China 2025' plan, which aims to greatly improve the competitiveness of Chinese manufacturing industry and enable China to become the world's manufacturing powerhouse. This study examines the present state of Chinese manufacturing, including its size, structure and problems. It explains Made in China 2025, its background, and the chances of its success. It concludes that the importance of Made in China 2025 for the future of the Chinese economy means it will be very difficult for China to make substantial concessions during a trade war.
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