Representative End User Clients
Representative Automation Clients
Representative Software Clients
China's manufacturing industry chain policies underwent a fundamental shift from "emergency defense" to "proactive shaping" during the period spanning the "14th Five-Year Plan" (FYP) (2021–2025) to the "15th FYP" (2026–2030).
I. Policy Context
During the "14th FYP" period, despite external challenges such as the pandemic and deglobalization trends, the global division of labor in industrial chains did not experience a fundamental restructuring. The overall situation was considered "controllable in terms of risk, with buffer space." The core policy focus was "short-term chain stabilization"—addressing weaknesses and preventing chain disruptions to avoid economic recovery being hampered by dependencies in key segments.
Entering the "15th FYP" period, the external environment entered a new phase characterized by "intensified major power rivalry and surging uncertainties." Unilateralism pushed for "decoupling from China" in industrial chains; geopolitical conflicts exacerbated volatility in energy and raw material supply chains, compounded by potential transmission of internal risks (such as real estate and local government debt) to industrial chains. The policy logic shifted from "reactive response" to "proactive resolution," aiming to build a self-reliant, controllable, yet globally integrated industrial chain network, seizing the initiative amid complex competition.
II. Industry Chain: From "Resilience Building" to "Autonomy & Control + Regional Layout"
III. Breakthrough Dimension: From "Single-Point Weakness Remediation" to "Full-Chain Autonomy/Control"
The "14th FYP" focused on "single-point breakthroughs," targeting the weakest links in the supply chain—the "Five Basics" areas (basic components/parts, basic software, basic materials, basic processes, and industrial technology foundation). For instance, it prioritized breakthroughs in core components of lithography machines in semiconductors and solved dependence on imported high-end bearings in equipment manufacturing. This approach yielded quick results, reducing short-term disruption risks but lacked full-chain coordination.
The "15th FYP" upgrades to a "point-to-area" approach, demanding "full-chain autonomy/control" in key fields and emphasizing synergy across "design-manufacturing-packaging-application." Taking integrated circuits as an example, it integrates EDA software, wafer manufacturing, and advanced packaging into a unified R&D push. In new energy, it promotes full-chain autonomy from "polysilicon-cells-inverters-operations & maintenance." This model shifts from "passively filling gaps" to "actively building barriers," avoiding reliance on single segments and solidifying long-term competitiveness.
IV. Risk Management Mode: From Static Reserves to Dynamic Response
The "14th FYP" employed "static reserves" to cope with extreme scenarios: implementing an "Emergency Product Production Capacity Reserve Project," establishing regional medical supply bases, increasing crude oil reserves in energy, and building 1.075 billion mu of high-standard farmland in agriculture (ensuring stable capacity above 650 million tons).
The "15th FYP" upgrades to a "dynamic response" mode, enhancing elasticity through "multi-node, multi-path" redundancy design. The automotive industry promotes supplier layouts across multiple domestic regions and ASEAN, avoiding single-source supply disruption; logistics builds a network of "China-Europe Railway Express + New Western Land-Sea Corridor + Ocean Shipping Lanes," with China-Europe Railway Express volume increasing 12 percent year-on-year in 2025, hedging risks on Baltic routes; the electronics industry establishes "key material alternative libraries" for rapid switching of substitute materials. This mode shifts from "passive stockpiling" to "active risk resistance," adapting to complex scenarios.
V. Layout Scope: From "Domestic Security" to "Regional Closure + Global Reach"
Facing early signs of "decoupling from China," the "14th FYP" focused on "domestic security," guiding key segments of industrial chains to remain within the country: concentrating lithium battery cathode material and separator production capacity domestically in new energy and strengthening local sourcing for engines and transmissions in automotive to avoid "domestic production halts due to overseas stoppages." This layout resisted short-term risks but could reduce resource allocation efficiency in the long run.
The "15th FYP" upgrades to "Regional Closure + Global Reach." Under the RCEP framework, it builds closed loops such as "ASEAN raw materials-Chinese manufacturing-Asia-Pacific market" (e.g., ASEAN minerals → domestic high-end steel → Asia-Pacific automotive companies), leveraging tariff reductions to lower costs. It also exports "technology-capacity-standards" to the "Global South," e.g., building PV module factories in Africa and semiconductor packaging bases in Southeast Asia—both aiding local industrialization and forming a "China design-regional manufacturing-global sales" system, alleviating "decoupling" pressure.
VI. Profound Impact on Global Industrial Chains
Optimizing Global Division of Labor Efficiency: The "15th FYP’s" regional closure model strengthens Asia-Pacific "resources-manufacturing-market" synergy. Under RCEP, automotive part costs could drop 10 to 15 percent, benefiting global consumers. Full-chain autonomy/control reduces global reliance on single-source technologies (e.g., EDA software) from developed economies, mitigating supply chain fragility caused by "technology monopolies."
Providing a Resilience-Building Template: The dynamic response model (multi-path logistics, supplier diversification) offers a reference for global risk response strategies.
Facilitating Industrialization in the Global South: Exporting "technology-capacity-standards" to Africa and Southeast Asia helps them overcome industrialization bottlenecks (e.g., African PV factories boosting clean energy development), promoting "decentralization" of global industrial chains and a more balanced division of labor.
Driving Green Transition: China’s PV module exports consistently dominate globally, with cumulative exports reaching 148.6 GW from January to July 2025. The "15th FYP" technological iterations will further reduce the Levelized Cost of Energy (LCOE) by about 15 percent. Green supply chain cooperation with ASEAN positions Asia-Pacific as a core global green manufacturing hub.
Conclusion
The transition of China's manufacturing industry chain policy from the "14th FYP" to the "15th FYP" represents a leap from "solving immediate problems" to "shaping the future landscape." This move will not only enhance China's leadership role in global industrial chains but also—through optimized division of labor, shared resilience, and green empowerment—inject certainty into the healthy development of global industrial chains.