The Made in China 2025 amid hyperglobalization: upgrading, intangible assets, and internationalization strategies

Abstract

This paper investigates the Made in China 2025 (MIC2025) initiative and how it tackles some of the challenges of organizing international production networks amid hyperglobalization. First, we discuss MIC2025’s background, review its strategic objectives, and explore its main challenges. Second, we add a descriptive analysis based on value-added trade measures to illustrate some aspects of the Chinese specialization pattern, drawing on the ICT industry as a case study to discuss the growing importance of intangible assets and how Chinese firms improve innovation capability through internationalization strategies. Our findings suggest that the Chinese government aims to improve Chinese enterprise’s ability to manage power relations in global innovation governance through innovation capability and upgrade in key industries, as is the case of the ICT sector. The MIC2025 reinforces an institutional vision that is not limited to participation in international production networks but is especially aimed at creating dynamic capabilities. In that sense, building local technological capacities and strengthening value chain stages, as well as the internationalization of Chinese companies, are crucial bases of the recent Chinese structural transformation.