Chinese productivity: China’s State Council has published a ten-year plan to modernise the country’s manufacturing facilities to the point that productivity levels in its manufacturing sector will equal those amongst its Germany competitors. The Made in China 2025 report also calls for the development of 10 sectors including high-tech engineering, robotics, aerospace and the biomedicine by encouraging innovation
China’s manufacturing sector is facing pressure both from emerging economies with lower labour costs and more developed countries who are seeking to gain a competitive advantage through added efficiencies. The report singles out Germany’s adoption of the so-called ‘fourth industrial revolution’ which (after steam, electricity and information) connects machines to a network where production processes and speeds are automatically adjusted to minimise problems and costs.