Xi’s Manufacturing Dream vs China’s Harsh Reality

hi I'm dong Sean welcome to digging to China where we explore China in depth to review unique perspectives over the past few days the entire Chinese speaking world has been fixated on one meeting the private entrepreneurs Symposium personally convened by sheep from the attendees matching office to the seating arrangements every tiny detail has been scrutinized but honestly the whole thing feels like a scene straight out of the chain dyn back then when people were summoned to the capital to meet the emperor they had to burn incense fast bathe and address properly just to avoid committing a breach of etiquette in the Imperial Court during the meeting Ren Ron the boss of will semiconductor found himself in trouble for sitting improperly his lack of decum in front of she actually caused his Company's stock to plummet now tell me doesn't this feel just like the Ching Dynasty All Over Again look at the US Elon Musk met the president while holding his child yet Tesla stock didn't nose dive because of it that's why this so-called private entrepreneurs Symposium is nothing short of ironic on the surface it seems to encourage the development of private Enterprises but in reality these so-called private businesses are just servants if you don't obey you might be the star of the show today but tomorrow you could be hanging from a street light you must constantly prove your usefulness to the system otherwise there's no place for you here for she 2025 is a special year 10 years ago he personally launched the made in China 2025 grand plan and now it's time for a progress report that's the real reason behind this imposium it's all about saving phase showcasing the supposed success of made in China 2025 but has it really been a success today we are going to expose the truth and see just how much of the plans goals have actually been achieved at the start of this year did you notice how the entire country seemed to be offering tributes to she's 2025 Vision let's start with the stock market which everyone is most concerned about since the beginning of the year Chinese stocks listed in the US have surged Alibaba announced a collaboration with apple and its stock has already jumped over 60% SEC filings revealed That Wall Street had a heavily invested in Ali Baba by the end of last year meaning they had access to Insider information long before the public did meanwhile the Hong Kong stock market has also sought largely due to the sudden emergence of deep sea which boosted entire tax sector but the speculative Capital driving this search is mostly from manland China making it look like a lot like a Beijing orchestrating the hype then there is the central bank's recent epic liquidity injection while there were technical reasons like relaxed exchange rate assessments the timing suggests a political agenda China needed a goodlooking financial data for the new year suddenly it felt like the entire Chinese Financial Market had coordinated to put on a grand spectacle of the rise of the East and it's not just the financial markets even the film industry has jumped in producing nja 2 seemingly tailor made for sheep the line my fate is determined by me not by the heavens perfectly Echoes his own mindset 10 years ago when he launched to made in China 2025 wasn't it driven by that same ambition to surpass the US every time I revisit shei archives I found endless Amusement let's rewinder to 10 years ago on May 8th 2015 China's State Council issued the made in China 2025 document clearly stating that China no longer wanted to be the world's factory making meager profits from low-end manufacturing the goal was to become a True Manufacturing Powerhouse with its own Global Brands shifting towards intelligent high-end and green manufacturing by 2025 China was supposed to complete this transformation from a manufacturing joint to a manufacturing innovator this has been she's biggest dream over the past decade but why did he introduce this plan in 2015 first after two decades of strategic patience and Jang zamin and huin TAA she ascended to power and found the state cers full the national wealth abundant naturally his ambition sought he was determined to make his Mark second the global manufacturing landscape was Shifting the US had already begun its ruring efforts aiming to revive domestic manufacturing and the reduce Reliance on China's supply chain meanwhile Germany and Japan were also adjusting their industrial policies all vying for dominance in high-end manufacturing at the same time China's lowend manufacturing sector was facing Rising competition Vietnam and India with even cheaper labor had begun absorbing some of China's manufacturing business from a rational perspective China did need to upgrade its industry high-end manufacturing was a battle it couldn't afford to lose third China itself was experiencing serious economic challenges growth was slowing raising concerns about the middle income uh trap on top of that the population dividend was Vanishing with an aging Society posing a massive future burden without the technological innovation to boost productivity the financial strain of Elderly Care would be crushing so upgrading the mining manufacturing sector was the right idea but she's approach to implementation and his evaluation standards were completely wrong and the most iconic part just one month after made in China 2025 was launched in May China's stock market crashed in June that year China lost a trillion dollars in foreign reserves she's granded Ambitions slapped in the face hard looking back maybe the anti Shi Jinping faction saw things more clearly than we did they realized early on that he was determined to shake things up to compete directly with the US completely abandoning dang xao Ping's strategy of hiding strength and abiding time instead he put China right in America's crosshairs seeing where this was headed they crashed they cashed out and took off with a trillion dollar in foreign exchange reserves in Hance sight maybe they had the right idea meanwhile the rest of us only figured out years later that a shi Jinping thinks like an elementary school student originally he had a well planned strategy and the national treasury had enough money to support it then a stock market crashed wipe out a trillion dollar from State reserves but by that point made in China 20125 had already been announced there was no turning back he had no choice but to push forward that's why he launched the belt and the road initiative worldwide and why and why packs of wolf Warriors started running wild on International stage thinking back now wasn't all of this a sign of insecurity the more uncertain he felt the more aggressive he had to appear now 10 years have passed how much of the original plan has actually been achieved last year the South China post compiled all the data and concluded that China had completed 86% of its goals in 10 key sectors declaring yet another victory over the us but is that really the case let's go back to the original state Council documents and see what those 10 sectors were next generation information technology highend the CNC machine tools and the robotics Aerospace equipment Marine engineering and high-tech ships Advanced rail Transportation energy saving and new energy Vehicles Power Equipment agriculture Machinery new materials and biom medicine but here is the problem those documents don't contain many clear assessment criteria instead they are filled with vague statements like market share should see a significant increase Reliance on foreign technology should decline significantly and the key equipment should reach World leading levels how do you measure any of this what exactly does significant increase mean how much does something need to decline significantly what does notably enhanced actually look like none of it is clearly defined making it impossible to say for sure how much of made in China 2025 has actually been achieved so far only electric vehicle have met a clear measurable standard as for the rest well look around to be fair Industries like a ship building agricultural machinery and CNC machine tools have made some progress but have they really hit the targets and here is the contradiction if China's manufacturing sector had truly upgraded the economy should have strengthened but what actually happened unemployment surged Capital flag LED incomes fell consumption declined and economy weakened yet some still insist that made in China 2025 was a great success isn't that just ridiculous if we look at economic fundamentals China's manufacturing upgrade simply doesn't add up but that doesn't stop Xi Jinping from staging performances to declare Victory that's why at the beginning of this year we saw the private entrepreneurs Symposium and look at the companies that were invited electric vehicles semiconductors AI Robotics and industries tied to made in China 2025 but where were companies like buy do and jd.com they weren't invited because their businesses aren't in Hightech manufacturing this wasn't a real discussion about economic policy it was a victory sell collboration for shiin Ping's Grand Vision only companies that could provide good propaganda were allowed to participate the rest was sidelined around the same time China's AI company deep seek gained attention making many believe that China and the US were now evenly matched in AI but in reality China lacks a domestic high-end consumer Market anywhere near the scale of the US May making it incredibly difficult for AI companies to turn a profit that's why deep seek has had to go with a budget AI model basically an AI version of TAMU and this exposes China's biggest manufacturing weakness Market Market Market for China's electric vehicle industry to be profitable it has to flood overseas markets but this ends up crushing local Industries in other countries that's why even pro-china European nations impose High tariffs on Chinese EVS the same thing happened with China's solar industry it Wipe Out the manufacturers in the US and Europe leading to more tariffs this is why no matter how much Europe criticizes the US it will never become a close Ally of China the US has a massive consumer Market Europe can complain about Washington while still making money there but with China the only thing you get is being taken advantages of nobody is willing to risk their own economy for Beijing and sure enough right after Shi Jinping wrapped up his big meeting the Asia Market tanked investors saw through the ACT there was no real Goodwill toward private businesses it was just another stage of the performance for the China Rising narrative First Capital must not overstep its bound Jack M's public criticism of China's Financial system was a step too for so he was punished second capital must serve the regime when shping set the made in China 2025 agenda Private Business had to align with it that's what serving the regime means if you succeed it's because of shi jinping's leadership and you must credit him if you fail it's your own fault for being incompetent in China if you want to be a capitalist you need to understand this and when the time comes you must be prepared to hand over your company to the state that's what Chinese style private Enterprises really mean this year China is trying to Showcase its manufacturing strengths the anend group IPO issue is expected to be resolved and a wave of tech companies will get the green light for listing the Securities regulator even announced that I poos in the 10 strategic industries of made in China 2025 will all be approved feeding the state propaganda machine with new success stories Shi Jinping will have plenty to boast about this year but as investors we need to stay clearheaded with so many new IPOs flooding the Asia Market massive amounts of liquidity will be drained if you are still investing in ASAS at the very least keep that that in mind thank you so much for watching if you find this video helpful please like it drop a comment below and hit subscribe button right here it really helps YouTube suggest my video to others I'll be back with more content soon until then be well