Quality management: The programme “Made in China 2025”

Quality management: The programme “Made in China 2025”

Overview

  • Release Date: April 18, 2017

The slowdown of China growth is in fact an indication of the improvement of its economy which refocuses on its traditional markets. This strategy of refocusing moves the competition on the quality. Indeed, the hypercompetitiveness of its economy is affected, in favor of the Europe which takes back foot on the extra-European markets; also for small peripheral countries: China rapidly giving way for the entry-level range to Indonesia, Bangladesh or Vietnam. The United States strengthened the regulations, and Europe set up the directive REACH (Registration, Evaluation and Authorization of Chemicals). The importer, responsible in the legal plan, has to take the necessary measures, in particular the suppliers’ assessment and the inspections. Most recently, ISO 9001 certification has become a requirement for exports to Europe, and China has been forced to generalize ISO certification.

In this new North-south competition, where the industrial performance seems to be the “second cold war”, China as a “Hypercompetitive industrial exporter” (Alan Beattie, of Financial Times) is approaching a new phase of its development since quality has been identified as a key competitive weapon in the global market [1]. That’s why the Chinese government launched in 2015 the programme “Made in China 2025”. The Made in China 2025 report focuses on 10 priority sectors for China, highlighting areas of opportunity for foreign companies. The sectors include  1 advanced rail and equipment – , 2 aviation and aerospace equipment – 3 agricultural machinery and technology – 4 power equipment and technology – 5 low and new-energy vehicles – 6 new materials – 7 high-end manufacturing control equipment and robotics – 8 biopharmaceuticals and high-end medical equipment – 9 advanced marine equipment and high-tech vessels – 10 integrated circuits and new generation information technology.

The aim of this programme is to bring China on an equal footing with the Western industrial nations with respect to Industry 4.0. In the long term, the People’s Republic aims to become the world’s leading industrial power. Hence, “Made in China” will guarantee innovation, quality and efficiency, something the Mercator Institute for China Studies considers a “challenge to the established industrial nations that is to be taken seriously”.  Indeed, Industry 4.0 can lead to a decrease of production costs (fewer rubbishes and delays), an increase in productivity to the total satisfaction of the customers due to the better products quality. Technological input and lower prices will enable China to win new market share.

Strategic tasks and priorities for implementing “Made in China 2025” are: 1 to further promote the structural adjustment of the manufacturing industry – 2 to promote the coordinated development of service-oriented manufacturing and productive manufacturing – 3 to raise the level of development in the manufacturing industry in line with international standards.

About Author

Arnaud Lefevre

Arnaud Lefevre is the Chief Executive Officer of Dynatom International. Founder of Dynabond Powertech Service, Arnaud is in charge of the international development of the business portfolio.

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