'Made in China 2025' and the Limitations of U.S. Trade Policy

78 Pages Posted: 11 Sep 2020

See all articles by Keith B. Belton

Keith B. Belton

Indiana University - School of Public and Environmental Affairs

John Graham

Indiana University Bloomington - School of Public & Environmental Affairs (SPEA)

Suri Xia

Indiana University Bloomington, School of Public & Environmental Affairs (SPEA), Students

Date Written: July 30, 2020

Abstract

Made in China 2025 (MIC 2025) is emblematic of China’s 21st century industrial policy. Substantial government-directed resources support private-sector efforts consistent with the plan, the heart of which is to acquire advanced technology. Industrial robots and plug-in electric vehicles are two targeted technologies for which China is capturing ever-greater market share domestically. Industrial policy is enabling this progress, although there are signs of inefficiency, especially in terms of government subsidies. And it may be too early to tell if China will lead in pushing the technology frontier outward through indigenous innovation. From a US perspective, trade policy offers a limited set of tools to address China’s challenge. Outside of trade policy, the most promising policy option is to increase government investment in pre-commercial research and development.

Suggested Citation

Belton, Keith and Graham, John and Xia, Suri, 'Made in China 2025' and the Limitations of U.S. Trade Policy (July 30, 2020). Available at SSRN: https://ssrn.com/abstract=3664347 or http://dx.doi.org/10.2139/ssrn.3664347

Keith Belton (Contact Author)

Indiana University - School of Public and Environmental Affairs ( email )

1315 East 10th Street
Bloomington, IN 47405
United States

John Graham

Indiana University Bloomington - School of Public & Environmental Affairs (SPEA) ( email )

1315 East Tenth Street
Bloomington, IN 47405
United States

Suri Xia

Indiana University Bloomington, School of Public & Environmental Affairs (SPEA), Students ( email )

1315 East Tenth Street
Bloomington, IN 47405
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
51
Abstract Views
252
rank
451,306
PlumX Metrics