By William K. Tabb

The U.S. policy toward China for decades presumed that its growth, propelled by the export of labor-intensive commodities, would move toward a democratic form of government as its middle class grew. Instead, the Communist Party has undertaken ambitious plans to transform the Chinese economy into a global high-tech superpower while simultaneously increasing its authoritarian political control. To this end, China has initiated a number of programs. The most important of these are its One Belt One Road (OBOR) project and the Made in China 2025 (M25) plan.

The first, the OBOR initiative, if fully actualized, would bind more closely 65 percent of the world’s population and 40 percent of global gross domestic product (GDP). The Chinese government promises over a trillion dollars in infrastructure to sixty countries as part of the OBOR integration of its economy to countries—a new globalization to challenge U.S. dominance, as President Trump’s America turns inward. In addition to the infrastructure, the Chinese have established low-cost manufacturing zones in the countries abutting Belt/Road facilities.

The second grand design is about gaining a commanding position in the industries of the future. M25 focuses on ten strategically and technologically important sectors: next-generation information technology, including 5G networks and cybersecurity; high-end numerical control tools and robotics; aerospace; ocean engineering; advanced railway equipment; energy-saving and new-energy vehicles; power equipment; agricultural machinery; new materials; and biomedicine and high-performance medical devices. We shall consider each and offer some judgments about their significance in a context of China’s Market-Leninist system or capitalism with Chinese characteristics.