BEIJING (Reuters) – China will reduce direct government intervention in its vast industrial sector, the industry minister said on Monday, as Beijing seeks to ease concerns about its industrial policy, core to Washington\u2019s complaints in the Sino-U.S. trade war.FILE PHOTO – China’s Minister of Industry and Information Technology Miao Wei speaks at the annual session of China Development Forum (CDF) 2018 at the Diaoyutai State Guesthouse in Beijing, China March 26, 2018. REUTERS\/Jason Lee<\/p>\n\n\n\n
The government\u2019s pledge to reduce its influence over operational matters in China\u2019s manufacturing sector follows an apparent toning down of its high-tech industrial push, which has long annoyed the United States.<\/p>\n\n\n\n
\u201cWe will gradually reduce the government\u2019s micro-management and direct intervention, in order to allow the market to effectively decide resource allocation and support the development of the manufacturing industry\u201d, Miao Wei, minister of industry and informational technology, said at the China Development Forum.<\/p>\n\n\n\n
But China will continue to encourage higher-value production, he said.<\/p>\n\n\n\n
In his speech, Miao did not touch on the so-called \u201cMade in China 2025\u201d plan, an initiative intended to help China catch up with global rivals in sophisticated technologies such as semiconductors, robotics, aerospace and artificial intelligence (AI).<\/p>\n\n\n\n
The state-backed industrial policy has provoked alarm in the West, due to China\u2019s open efforts to deploy state support and subsidies.<\/p>\n\n\n\n
The comments came days ahead of the latest round of high-level trade talks between China and the United States starting in Beijing on Thursday.<\/p>\n\n\n\n
Washington has threatened further action if China does not change its practices on issues ranging from industrial subsidies to intellectual property.<\/p>\n\n\n\n
China is not conceding to U.S. demands to ease curbs on technology companies, the Financial Times reported on Sunday, citing three people briefed on the discussions.<\/p>\n\n\n\n
The latest conciliatory tone struck by Beijing to placate Washington does not mean China is less serious about its high-tech manufacturing drive, with local governments still rolling out plans to help manufactuers move up the value chain.<\/p>\n\n\n\n
Local governments have also been told to pursue new engines of industrial growth by developing innovative technologies, such as new energy vehicles (NEVs) and artificial intelligence (AI).<\/p>\n\n\n\n
Miao said technology manufacturers needed to survive \u201cthe Valley of Death\u201d as they seek to turn laboratory samples into mass production.<\/p>\n\n\n\n
The southern province of Hunan this month issued a three-year plan for the AI sector, pledging more support for a local industry whose size is projected to reach 10 billion yuan ($1.49 billion) by 2021.<\/p>\n\n\n\n
In the central province of Henan, production of service robots rose 14.3 times in January-February from a year earlier, according to local media.<\/p>\n\n\n\n
When asked to comment on President Donald Trump\u2019s wish to bring manufacturing jobs back to the United States, Miao said that such decisions could not be made by a single person because an entire supply chain was involved.<\/p>\n\n\n\n
\u201cEvery company will consider putting its supply chain in a country were costs are relatively lower, this the purpose of the law of economics,\u201d he said.<\/p>\n\n\n\n
\u201cIf, after comparisons are made, that the United States has lower costs and possess advantages versus other countries, I\u2019m sure that a company\u2026will bring its manufacturing back to the United States.\u201d<\/p>\n\n\n\n
In a bid to support to small companies, many of which have been struggling to get financing, Miao said small and medium-sized companies will play a bigger role in the sector\u2019s innovation.<\/p>\n\n\n\n
China is planning to launch a highly-anticipated Nasdaq-style technology board – a move by Beijing to counter U.S. curbs on China\u2019s technology advances.<\/p>\n\n\n\n
The government\u2019s next move is to implement policies such as tax reductions and to improve the protection of intellectual property rights, according to Miao, adding that the general manufacturing sector will be fully liberalized.<\/p>\n","protected":false},"excerpt":{"rendered":"
BEIJING (Reuters) – China will reduce direct government intervention in its vast industrial sector, the industry minister said on Monday, as Beijing seeks to ease concerns about its industrial policy, core to Washington\u2019s complaints in the Sino-U.S. trade war.FILE PHOTO – China’s Minister of Industry and Information Technology Miao Wei speaks at the annual session of China Development Forum (CDF)… Read more »<\/a><\/p>\n","protected":false},"author":111,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-3311","post","type-post","status-publish","format-standard","hentry","category-article"],"_links":{"self":[{"href":"https:\/\/baileyonlineclassroom.com\/eastasiaandoceaniablog\/wp-json\/wp\/v2\/posts\/3311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/baileyonlineclassroom.com\/eastasiaandoceaniablog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/baileyonlineclassroom.com\/eastasiaandoceaniablog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/eastasiaandoceaniablog\/wp-json\/wp\/v2\/users\/111"}],"replies":[{"embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/eastasiaandoceaniablog\/wp-json\/wp\/v2\/comments?post=3311"}],"version-history":[{"count":1,"href":"https:\/\/baileyonlineclassroom.com\/eastasiaandoceaniablog\/wp-json\/wp\/v2\/posts\/3311\/revisions"}],"predecessor-version":[{"id":3312,"href":"https:\/\/baileyonlineclassroom.com\/eastasiaandoceaniablog\/wp-json\/wp\/v2\/posts\/3311\/revisions\/3312"}],"wp:attachment":[{"href":"https:\/\/baileyonlineclassroom.com\/eastasiaandoceaniablog\/wp-json\/wp\/v2\/media?parent=3311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/eastasiaandoceaniablog\/wp-json\/wp\/v2\/categories?post=3311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/eastasiaandoceaniablog\/wp-json\/wp\/v2\/tags?post=3311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}