A flying car launched by prestigious Chinese automotive brand Hongqi, which is scheduled to make its maiden flight later this year Photo: IC PHOTO

Since the implementation of the “Made in China 2025” initiative, China’s manufacturing sector has accelerated its innovation-driven development, making significant progress in green transformation, digitalization, and high-end manufacturing. With remarkable accomplishments in strategic emerging industries, China has played an increasingly pivotal role in global manufacturing innovation and development.

Toward high-quality development

China’s global competitiveness has markedly improved. Over the past decade, the country’s manufacturing sector has continuously strengthened its global presence, with expanding market share and growing brand influence. China has maintained its position as the world’s top manufacturing value-added contributor for 15 consecutive years, with its share of global output rising from 26% in 2015 to over 30% in 2024.

In terms of exports, China has evolved from a “world factory” into a hub for high-end manufacturing, now commanding more than 40% of the global market share in high-speed rail, telecommunications equipment, shipbuilding, and other domains. A growing number of internationally competitive Chinese brands have earned the trust and recognition of consumers worldwide.

China has also emerged as a global innovation leader. Over the past decade, Chinese manufacturers have continued to increase investment in research and development (R&D), yielding numerous breakthroughs in technologies protected by proprietary intellectual property rights. The sector’s R&D intensity reached 1.72% in 2023, up 0.75 percentage points from 2015. Leading enterprises have made landmark technological advances—Huawei’s 5G, Semiconductor Manufacturing International Corporation (SMIC)’s 14nm chips, and the C919 passenger jet have all broken foreign monopolies.

The 2024 Global Innovation Index published by the World Intellectual Property Organization ranked China 11th globally. Home to 26 of the world’s top 100 science and technology clusters, the country has maintained its top position for two consecutive years.

Digital and intelligent transformation is deeply reshaping the manufacturing sector. The deep integration of the industrial internet, big data, and AI technologies with manufacturing has revolutionized production models across the sector. China now boasts over 1,200 advanced-level and 230 world-class smart factories, including appliance giant Haier’s “lighthouse factory.”

The platform economy encompassing e-commerce, industrial big data, and cloud computing have enabled manufacturers to better integrate industrial chain resources, optimize supply chains, enhance operational efficiency, and strengthen market responsiveness. This digital transformation has meanwhile spawned innovative business models like personalized customization and remote maintenance, catering to increasingly diversified consumer demands.

Green manufacturing has achieved rich results. Chinese manufacturers have significantly enhanced their energy utilization efficiency through widespread adoption of energy-saving technologies and improved energy management systems. From 2015 to 2022, total energy consumption in manufacturing dropped by 25.4%. In 2023, the comprehensive utilization of bulk industrial solid waste hit approximately 2.2 billion tons, a utilization rate of 54%. Key industries such as steel, cement, and chemicals have seen particularly strong results in energy conservation and emissions reduction.

In addition, the nation has accelerated the development of a green manufacturing system, promoting green design, clean production, and sustainable supply chain management among manufacturers. Continuous improvements in certification standards for green factories, industrial parks, and products are guiding enterprises toward sustainable development principles, ensuring the sector’s environmentally responsible growth.

Foundational industrial capacities have improved considerably. Over the past decade, China has seen remarkable breakthroughs in both core and basic components, advanced manufacturing processes, and critical base materials. For example, the country has developed high-performance core and basic components in strategic sectors like precision CNC machine tools and aerospace engines, breaking foreign technological monopolies and providing crucial support for high-end equipment manufacturing. Notable progress has also been made in advanced basic techniques and key base materials, with certain products reaching globally advanced standards, laying a solid foundation for industrial transformation and upgrading.

Strategic emerging industries have demonstrated robust growth over the past 10 years, becoming a major driver of high-quality manufacturing development. In 2023, these industries contributed over 13% of national GDP, while high-tech manufacturing’s share in the added value of industries above a designated size rose from 11.8% in 2015 to 16.3% in 2024. Companies like Huawei have emerged as global leaders in specialized market segments, showcasing China’s technological prowess.

Key driver of global manufacturing

China has become a key force reshaping the international industrial landscape. Due to rapid advancement in strategic emerging industries, China has taken an important position in global industrial competition. In 5G communications technology, for example, Chinese enterprises lead the world in network deployment, equipment manufacturing, and application development, accelerating worldwide 5G adoption. China’s extensive 5G implementation has not only boosted domestic digital transformation but also established new benchmarks for global markets, setting trends for emerging industries.

Simultaneously, China’s industrial upgrading in traditional sectors is redefining global value chains. The rise of Chinese manufacturers in high-end equipment and automotive manufacturing has fundamentally altered global production networks. By offering cost-competitive premium products and services, China’s manufacturing sector has enriched consumer choices worldwide.

China is increasingly contributing to global supply chain optimization, with its manufacturing sector evolving rapidly from participant to architect. Robust production capacity and comprehensive industrial ecosystem have secured the country’s significant roles in critical industries like electronics and automotive manufacturing, where China dominates essential supply chain nodes.

The high-quality development of Chinese manufacturing has strengthened the resilience of global supply chains. During the COVID-19 pandemic, China’s manufacturing sector exhibited extraordinary recovery capabilities, maintaining stable operations that safeguarded worldwide supply chain continuity. Its reliable production capacity provided crucial support to economies around the world during unprecedented disruptions.

China is also deepening global innovation partnerships. Its manufacturing sector has transformed China from technology importer to exporter, with innovations in 5G, high-speed rail, and new energy vehicles attracting worldwide collaboration interest. Through technology transfers and joint initiatives, China is co-driving technological progress across global industries. In addition, the country has established international innovation platforms including sci-tech parks and joint R&D centers with Western partners, facilitating cross-border knowledge exchanges and optimizing the allocation of global innovation resources.

Finally, China’s high-quality manufacturing development is helping to elevate global consumption patterns and diversify global consumer markets. Through continuous product innovation and upgrades, Chinese manufacturers are introducing high-quality goods tailored to a wide range of consumer needs, thereby enriching the global market landscape. The rise of Chinese brands has reshaped international perceptions, steadily increasing China’s share in global consumer markets.

Moreover, China’s manufacturing advances have expedited consumption upgrading globally. By delivering smart, customized, and eco-friendly products and services, Chinese enterprises are meeting global demand for quality living standards and propelling the transformation of consumption markets.

Jiang Feitao (research fellow) and Zhang Hangyan (associate research fellow) are from the Institute of Industrial Economics at the Chinese Academy of Social Sciences.