May 7, 2025 | Policy Brief

New Report Finds Beijing Has Successfully Achieved ‘Made in China 2025’ Policy Goals, Catching Up to the U.S.

May 7, 2025 | Policy Brief

New Report Finds Beijing Has Successfully Achieved ‘Made in China 2025’ Policy Goals, Catching Up to the U.S.

With summer arriving, Beijing has received its latest report card. On April 5, the U.S. Chamber of Commerce issued an analysis on the state of Made in China 2025 (MIC25) — Beijing’s premier industrial policy and a key source of friction between Washington and Beijing during the first Trump administration.

The report highlights that “Chinese firms appear well-positioned to make significant advances in several high-tech sectors under MIC25, including biotechnology, medical devices, and robotics” — illustrating Beijing’s growing challenge to Washington’s scientific and technology leadership despite China’s economic malaise.

U.S. Chamber of Commerce Finds China Has Gained Market Share, Reduced Imports in Key Industries

The report illustrates that Beijing’s investments have allowed Chinese firms to increase their global market share in a range of high-tech sectors. Having benefited from a flood of subsidies across all levels of government — including state-guided investment funds, loans, and targeted investments in foreign companies — Chinese firms have become globally competitive in clean technology, shipbuilding, and drones. Along with displacing foreign competitors in global markets, MIC25 has reduced China’s demand for imports in several key sectors, such as medical devices — which fell from 24 percent in 2015 to 14 percent in 2023.

Nevertheless, the report also found that China still faces several limits in its drive to achieve technical self-sufficiency. Some Chinese sectors remain highly dependent on Western products, particularly advanced semiconductors, commercial jet aircraft, and high-end machine tools. Moreover, the report notes that despite Beijing’s overall embrace of protectionism, certain sectors have benefited from foreign investment, particularly in constructing indigenous supply chains to produce smartphones and electrical vehicles (EVs).

China Remains Committed to Industrial Policy Despite Growing Economic Malaise

The report highlights the growing duality of China’s economy. Beijing is pouring resources into scientific and technological advancement amidst a period of deepening economic malaise. Since launching MIC25, China has ramped up support for its research and development pipeline increasing funding for basic science, higher education, and artificial intelligence (AI) to strengthen both its economic model and military prowess. Along with advancing the country’s manufacturing sector, these investments have allowed China to grow its global share of scientific publications and patents, contributing to Beijing’s growing dominance over strategic industries such as electrical batteries and robotics.

These investments have also aggravated China’s structural economic challenges, draining key resources to prop up the country’s export-oriented growth model. While subsidies have spurred growth in industries such as EVs, consistent over-stimulation has led to over-production and intense price wars between domestic producers, weakening the sector’s overall strength. Extended across several high-tech industries, this trend has led productivity to stagnate, producing a drag on economic growth. This trend also threatens to contribute to societal unrest, as local governments, which have been partially responsible for funding MIC25, remain mired in debt and are forced to cut services.

The U.S. Must Invest in Its R&D Pipeline

There are two critical steps Washington can take to keep sensitive technology out of Beijing’s hands. First, building on the America First Investment Policy, Congress should consider legislation that screens outbound investment into Chinese technology firms. Second, the Trump administration should finalize the federal government’s Framework of AI Diffusion, which seeks to prevent China from gaining access to U.S. innovation via third-country transactions.

Washington must also increase its investment in science and technology, building out a foundation to support the country’s long-term scientific and technological leadership. These efforts should include reversing funding cuts to the National Science Foundation, the National Institutes of Health, and the National Institute of Standards and Technology, all of which play key roles in supporting American innovation.

Jack Burnhamis a research analyst in the China Program at the Foundation for Defense of Democracies (FDD). For more analysis from Jack and FDD, please subscribeHERE. Follow Jack on X@JackBurnham802. Follow FDD on X@FDD. FDD is a Washington, DC-based, nonpartisan research institute focusing on national security and foreign policy.  

Issues:

Issues:

China Cyber

Topics:

Topics:

Washington China Donald Trump Beijing Jack Burnham National Institute of Standards and Technology National Science Foundation