China Is Poised for 'Technology Takeoff'
In the past, "Made in China" has driven global economic growth, with Chinese output contributing to over 20% of total output worldwide, but now it faces competition from other cheap labour markets in addition to developed companies trying to roll out measures to win back manufacturers. The government's "Made in China 2025" strategy announced in May aims to promote China's&nbsp;industrial transformation by shifting emphasis from raw materials to innovation and added-value. Many of the factories using cheap labour in the&nbsp;Yangtze River Delta, in the east, and the south's Pearl River Delta have been replacing workers with robots on a large scale, a sign that China is about to take off technologically. With China spending more on R&amp;D than many countries with similar GDPs and the number of&nbsp;Chinese research papers and patents filed among the highest amount in the world, the country is now a hotbed for innovation.
For the past 20 years, "Made in China" has driven global economic growth, with Chinese manufacturing contributing to more than one-fifth of total output worldwide. But it is stuck in an awkward position now, as developed countries roll out measures to win back high-end manufacturers while poorer countries offer cheap labor as a comparative advantage.

The "Made in China 2025" strategy announced on May 19 is the central government's response to the problem. Its goal is to promote the country's industrial transformation and upgrading by shifting emphasis from raw materials to innovation and added-value.