· China has launched a long campaign to win the trade war with the U.S., which is targeting Beijing’s transition to a digitally advanced economy.
· The Trump administration regards China as its ‘strategic competitor’ which ‘threatens’ the U.S. in terms of geopolitics, strategic security, economy and trade and technology, as well as ideology.
· Its China policy, based on zero-sum mentality, will not change. Therefore, China has to cast away illusions and resolutely respond to the U.S.
· Analysts say that Made-in-China 2025 (MIC 2025) that promises to make Beijing the global engine of advanced manufacturing, is the real target of U.S. President Donald Trump’s trade war.
· For starters, China is responding energetically to the heavy domestic demand for white collar jobs in high-end manufacturing, including those of self-driving cars, drones and other areas such as new materials and biomedicine.
· China is also expected to dramatically expand funding for semiconductor chips — its area of vulnerability within the MIC-2025 framework.
· Further, China is in a good position to import products from other countries as an alternative to the U.S. Whereas one-fifth of U.S. imports are from China, Beijing imports only 9.9% of its requirement from the U.S.
Source : The Hindu