News - Full StoryCRU: Made in China 2025 - Quality in Quantity
LONDON, September 14, 2017 /PRNewswire/ --
In this CRU spotlight, John Johnson, Country Manager, CRU China, introduces China's "Made in China 2025" strategy (MiC2025), and how it may impact the commodities followed by CRU. CRU's China office research suggests that this new strategy, which is not widely understood outside of China, is likely to be a major disrupter to world commodity markets.
At first sight, the 10 advanced industries identified in China's MiC2025 strategy do not appear relevant to the world of "commodities", but global mining companies and downstream metals producers are rapidly re-evaluating their own strategies, partly as a result of this policy, since it is likely to change the playing field in which they operate. Two recent examples include BHP Billiton and Glencore declaring a significant move into new battery metals.
China's shipbuilders have overtaken South Korea's, with the largest order book for new vessels in 2017, accounting for 31% of world orders. Moreover, a Shanghai shipbuilder has recently signed a letter of intent from an overseas shipping company for 9 container vessels capable of transporting 22,000 containers, the largest carrying capacity in the world.
China Railways Corp, China's rail operator, plans to purchase 500 bullet trains with an operating speed of 350 kilometres per hour from China Railway Rolling Stock Corp. by 2020.
China's new commercial aircraft corporation has already received 600 orders for the C919, the largest passenger jet constructed in the country, so far.
China also plans to lead the world in manufacturing electric cars and hybrids by 2025 with 7 million new energy vehicles targeted.
China is the leading producer and user of robots, accounting for about 30% of market share, and has recently unveiled a national development plan to build a 1 trillion Rmb AI-robotics industry by 2030.
The above list is anecdotal and represents just a few recent news stories from China, but it is indicative of China's huge growth potential in higher value manufactured items, which is the focus of the government's "Made in China 2025" initiative.
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