China Ahead of the 13th Five-Year Plan: Competitiveness and Market Reform

China's Five-Year Plans are an important component in China's broader industrial policy by outlining the Chinese government's priorities and signaling to central and local officials and industries the areas for future government support. At the National People's Congress last month [March, 2015], Premier Li Keqiang announced that "Made in China 2025" and "Internet Plus" initiatives, which are aimed at increasing market share in other areas where the United States currently has an advantage. As a result of strong government support to build capacity and to drive market demand in the clean energy sector, eight of the world's top-15 wind turbine makers in 2013 and six out of the world's top ten solar photovoltaic manufacturers are Chinese. Furthermore, continued support for heavy industry sectors such as steel has created cascading oversupply--directly impacting the employment and profitability of steel firms here in the United States. China has also made great strides in aerospace and in the auto sector. The five-year plans, and supporting policies, have helped promote their development of international competitiveness in these sectors.