China's Industrial Policy: Autonomy and Productivity

This technical report from S&P Global examines China's industrial policy, which is anchored by a dual mandate of autonomy and productivity. The report outlines how these two pillars are shaping the strategy, resource allocation, and long-term planning within the country. It details the significance of the 15th Five-Year Plan, which emphasizes technological self-sufficiency and efficiency across sectors. The document discusses the challenges associated with these goals, such as state reliance, weak consumption, and local financial issues that limit productivity gains. The report further explains the impact of external pressures like global protectionism, which intensifies the urgency for achieving autonomy. It also describes how the Chinese government is shifting its focus from broad subsidy-driven growth to a more targeted approach that balances state and market mechanisms. Overall, the report presents an analysis of how these strategies will influence China's industrial future and global supply chains amidst numerous challenges.