29 April, 2019
In 2017, China's labour pool (aged 15 to 65) shrank to below 1 billion for the first time since 2010. With an expansion of the middle class during the same period means China can no longer rely on endless supply of cheap labour to drive its manufacturing sector.
Technological capabilities has also made the manufacturing sector more complex. The traditinal methods of production through knowledge transfers from foreign operators is becoming rarer. These market forces have driven Chinese manufacturers to focus more on innovation to grow.
The Chinese government have responded to this by launching a 10 year blueprint for manufacturing and development.
The Made in China 2025 Plan targets emerging industries such as robotics, autonomous and electric vehicle manufacturing, artificial intelligence (AI), biotech and aviation. The state provides these industries with subsidies, low-interest loans, rent-free land and tax breaks with the aim of optimising the structure of Chinese industry by emphasising quality over quantity.
The blueprint stresses “indigenous innovation” and “self-sufficiency” and has set a target of increasing Chinese technology suppliers’ overall domestic market share to 70% by 2025. It also aims to cut operating costs, production cycles and product defect rates by 50%.
Our new report reveals the readiness of Asian manufacturers and supply chain enterprises in the adoption of innovation in the Industrial Internet of Things (IIoT) and how businesses plan to solve market-specific challenges.
The report, produced in association with Osborne Clarke, produced key insights into how the internet of things is changing the face of global business, creating new opportunities in automation, smart manufacturing and predictive asset management. Focused on China, Hong Kong, India and Singapore major IoT manufacturers provided their learnings and thoughts on how Asian governments are striving to stay ahead of the fourth industrial revolution as greater industrial connectivity offers up unique opportunities for Asian markets.
To find out more, please visit report here.
For further information, please contact:
Stephen Lai, Managing Director, Conventus Law
stephen.lai@conventus21sta.wpengine.com
