It’s predicted that in the next ten years, China’s industrial policy will be facilitated by its ability to be able to meet critical material demands, which are to be dubbed China Manufacturing 2025. The words “industrial policy” is, in other words, the direction in which the government is leaning towards in terms of taking control of a part of the country’s industrial sector or even the whole of it. Such policies are a no-go zone in the United States, and the slightest hint towards that direction will be met with heavy criticism; which is somehow justified. Take, for instance, the Solyndra Solar Cells attempts which bore no fruit.
Furthermore, the interpretation of Washington, DC on the free market economy issue and its intellectual facilitator, neoliberal economics, does not in any way agree to an “industrial policy.” Contrary to the US, China’s leadership is that of a single part-The Chinese Communist Party; which in itself features a command economy. This is where a few individuals in the government control the economy of the whole nation in regards to the production objectives and the main focus of the economy using back channeled methods to implement their personal goals.
Currently, on trial is the free market capitalism variation by PRC which they have named the Capitalism with Chinese Characteristics. One of the characteristics states that the interested parties manufacturing in the Country whether it be the State Owned Enterprises or the privately owned entities, they MUST meet the required requirements by the PRC Policy. The OEM automotive industry is most likely to be the profoundly affected party by the policy as the People’s Republic of China in this day and age has the final say typically when it comes to the manufacture of trucks, cars, motorbikes, motorcycles, and so on.