Report Finds China Expanding Industrial Policy to All Production Layers

China's industrial policy is becoming more systematic and pervasive, shifting from targeting specific sectors towards covering all layers of production, according to a report by the US Chamber of Commerce and Rhodium Group released on Monday. The strategy, as laid out in the latest 15th five-year plan, now covers additional frontier technologies such as biomanufacturing, embodied intelligence and intelligent driving.

Coverage has likewise expanded under the country's “Made in China 2025” initiative. The report examines how the policy framework has evolved to address every stage of manufacturing and innovation. Officials have integrated measures that influence supply chains, research and development, and market access across a broader range of industries than in previous planning periods.

This approach aims to reduce reliance on external technologies while strengthening domestic capabilities at each level of production. The changes reflect a move toward comprehensive oversight rather than isolated sector-specific support.

Under the updated framework, biomanufacturing has been added alongside existing priorities in advanced materials and high-end equipment. Embodied intelligence, which combines artificial intelligence with physical systems, and intelligent driving technologies have also received expanded attention in planning documents.

The five-year plan and Made in China 2025 initiative together form the core of the country's industrial strategy. Both documents have been revised to encompass a wider array of technologies and to apply policy tools more uniformly across the economy.

The US Chamber of Commerce and Rhodium Group analysis notes that the systematic nature of the policy now extends to regulatory, financial and procurement mechanisms that affect companies at every tier of the supply chain.