BEIJING — China’s tech industry development plan released nearly two years ago has unexpectedly become the target of finger-pointing this week.
A European business group criticized the strategy, named “Made in China 2025,” in a lengthy report that said China’s support for its ten high-tech manufacturing sectors would lead to worsening treatment for foreign companies, while allowing government-subsidized homegrown players to compete unfairly.
A media report called the plan a “threat to foreign firms,” adding to concerns about China’s business environment.
The assertion, seemingly reasonable, does not appear to be true.
China had long granted multinationals privileges unimaginable to native businesses, including huge tax breaks and subsidies. Local authorities, especially those in less-developed regions, provided even more generous policies, such as free land use.
“Super-national treatment” used to be a popular term in China to describe such exclusive preferential policies.
Now the special treatment is being gradually repealed as the government lets the market to decide, but more critical economic areas are open to global investors and free trade zones have been established.
“China’s door is going to keep on opening wider,” Premier Li Keqiang reassured foreign firms when addressing national lawmakers at the beginning of March.
Premier Li promised the same preferential policies under China’s manufacturing improvement program for domestic and foreign players, in addition to equal treatment in license applications, standards-setting and government procurement.
For foreign-funded firms, countless Chinese workers in processing industries have for decades created considerable profits to receive low salaries.
Suffering from lackluster global markets, an increasing number of multinationals are starting to regard the rapidly-growing Chinese market as a way to boost business growth.