GMI Solutions – Blog

Are You Ready For "Made In China 2025"?

Written by Hans Dittmar | Mar 21, 2023 7:21:58 PM

 

China's "Made in China 2025" directive is ramping up pressure on many multinational corporations - especially those with a large revenue footprint.

This also means that many products sold into China will face challenges.

The overall goal of MIC 2025 is to promote innovation and the development of high-tech industries, to improve the quality and efficiency of manufacturing in China, and to reduce the country's reliance on foreign technology.

The plan also aims to help China become a global leader in advanced manufacturing and to support the country's economic growth and international competitiveness.

According to the Center for Strategic and International Studies, the plan identifies the goal of raising the domestic content of core components and materials to 40% by 2020 and 70% by 2025.

See the article here for reference: https://www.csis.org/analysis/made-china-2025. 

Key Sectors Being Affected: 

  • Advanced IT 
  • Robotics 
  • Aerospace 
  • Ocean engineering 
  • Energy-saving and new-energy vehicles 
  • Biomedicine 
  • High-end numerical control tools 
  • Robotics 

For OEMs that build products in China, the tightened restrictions require that 70% of their suppliers are Chinese-based firms. If this threshold is not met, they will need to redesign the product to accommodate this stipulation. For many medical OEMs, this can cause quite a headache as the approvals and change process is very cumbersome and costly. In discussions with our healthcare OEM customers, many are expressing concerns about these tightening restrictions.  Adding to that challenge, OEMs are also expressing concerns about their ability to find Chinese suppliers that can meet the rigorous requirements of the medical device industry. 

If you find yourself in this position and are looking for a reliable partner, GMI Solutions can help. With a wholly owned foreign entity facility in Shanghai, we are positioned to provide US support, the highest quality assembly, and integration along with direct China manufacturing in an ISO 13485 facility. We would love to discuss your MIC 2025 project with you. If we can help just let us know.