Made in China 2025 – Revisited

Not only because the sessions set the framework for Beijing to confront serious economic challenges ahead.

But also because of the stellar performance by Foreign Minister Wang Yi, who forcefully imprinted in the collective psyche of the Global Majority how China should be regarded as a premier source of stability in this extremely turbulent geopolitical juncture, standing firm “in the right side of History”.

So let’s start with the key Wang Yi takeaways – which translate as de facto setting the tone for Beijing’s diplomacy throughout 2025.

US-China: Beijing is ready to engage with Trump 2.0 on the basis of mutual respect. Yet “if the US continues to contain China, we will resolutely counteract.” It’s “fully possible” for US and China to become partners. But this should be seen as the paramount concept: “No country should fantasize that it can suppress China and maintain good relations with us at the same time.”

The Global South: That is a “key force for maintaining world peace, driving world development and improving global governance”. These developing nations, accounting for over 40 per cent of global GDP, “hold the key to bringing stability to the world and making it a better place.” Wang Yi emphasized once again how China is “a natural member of the Global South.”

Russia – and Ukraine conflict: Russia and China’s“mature and resilient relationship (…) will not be swayed by any turn of events or be affected by any third party.” Wang Yi defined Beijing’s position on the conflict as “objective and impartial” – and crucially did not call for Europe – or Ukraine – to be included in the upcoming US-Russia negotiations. His major point – which echoes Russia’s analysis: “Security is mutual and equal; the security of one country cannot be built on the insecurity of others.”

Gaza: No Chinese endorsement of the Trump Gaza Riviera Resort and Casino gambit: “Gaza belongs to the Palestinian people”. And “changing its status by forceful means will not bring peace but new chaos”. Beijing supports the Egyptian peace plan. Once again, Wang Yi made it clear that “the crux of the cycle of the Palestinian-Israeli conflict lies in the fact that the two-state solution is only half achieved.”

Europe: Wang Yi praised the “capacity and wisdom” of EU-China to “deepen strategic dialogue and mutual trust.”Beijing, at least in theory, believes that Europe could become a trusted partner. The EU and the European Commission (EC) in Brussels may have other – belligerent – ideas.

South China Sea: Wang Yi went straight to the point on the manipulation of Philippines by “external forces”: “Infringement and provocation will backfire, and those acting as others’ chess pieces are bound to be discarded.” Yet he stressed the South China Sea remains “stable”, because China and ASEAN want it to remain so.

Taiwan: Wang Yi forcefully stated that “Taiwan has never been a country (…) It was not in the past, and it will never be in the future.” Moreover, “seeking Taiwan independence is doomed to backfire, and using Taiwan to contain China will be nothing but a futile attempt. China will realise reunification, and this is unstoppable.”

Made in China 2025 On Overdrive

Now let’s focus on China’s extremely complex domestic equation. At the opening of the Two Sessions, Premier Li Qiang came up with a rallying call for the whole nation to rise up to a series of “very challenging” goals, including growth of 5% in 2025 (it was 4.9% last year).

Essentially, to revitalize the economy, Beijing will issue 1.3 trillion yuan (around US$182 billion) in ultra-long special treasury bonds. The deficit-to-GDP ratio was set at around 4%.

The official policy of “opening up” will reach the internet, telecoms, healthcare and education industries – meaning more opportunities for foreign investors and possible partnerships up and down the industrial supply chain.

CK Hutchison Holdings, founded in Hong Kong by notorious tycoon Li Ka-shing, essentially had to sell 80% of Hutchison Port Group, a subsidiary that owns 43 container ports in 23 countries, including a 90% stake in the Balboa and Cristobal docks at either end of the Panama Canal, because of hardcore geopolitics. Hutchison will continue to control its ports in China, including Hong Kong.

President Trump made a huge fuss about the BlackRock-led deal. The view in Hong Kong is more pragmatic. Hutchinson was not eager to engage in a furious court battle in US courts – not to mention potential sanctions. So they chose to opt for a “strategic exit”.

Finding Shelter From the Coming Storms

Premier Li noted how consumption in China now is “sluggish” and, somewhat euphemistically, how there were “pressures on job creation and income growth”. Enter a promised “vigorous boost” to household demand, plus the creation of 12 million new urban jobs, with help focusing on fresh university graduates and migrant workers.

It’s quite enlightening to observe the proposals of the Two Sessions – and the tone-setting by Wang Yi – in relation to the analysis by a certified Asian star such as former Singaporean ambassador to the UN Kishore Mahbubani.

The bottom line is that Beijing will not be trapped by any possible, bombastic provocation coming from Trump 2.0. Once again, it’s all about “coordinated expansion”.

All that is inextricably linked to the successful planning – and achieved targets – of Made in China 2025. Talk about two five-year plans back to back (Made in China was conceived in 2015).

So this is what China 2025 will be all about: serious investments coupled with lots of partnerships with the whole Global South. Once again, in a sort of Sun Tzu framework tweaked by Bruce Lee, China is bound to use Trump 2.0 and the coming mix of confrontation, competition and periodic negotiation as a trampoline to expand its global reach even further.

That might be one of the unstated meanings of what Xi Jinping told Putin in Moscow nearly two years ago: “Changes unseen in a century.” Beijing will be sure to find shelter from the storm – any storm. And without having to fight a single kinetic war.