China's 'Made in China 2025' Industrial Policy

under implementation

China's strategy relies on centralized planning, state subsidies, and aggressive market access controls. Between 2020 and 2025, the government allocated over $5.85 billion in loans and $32.5 billion in grants to 32 companies, accelerating dominance in electric vehicles (EVs), renewable energy, and semiconductors. Tax incentives and guidance funds have reduced capital costs for domestic firms, enabling rapid scaling. By 2025, China accounted for 60% of global EV production and 70% of lithium-ion battery manufacturing. The model enables rapid execution of infrastructure and manufacturing projects in months rather than years, but with risks of regulatory opacity and systemic risks such as overcapacity and trade tensions.