China builds the foundation of a modern industrial system through the development of advanced manufacturing
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China builds the foundation of a modern industrial system through the development of advanced manufacturing

China is actively developing advanced manufacturing, using innovation as its main guide. Thanks to a higher technological level and an accelerated transition to smarter, greener, and more integrated development, the country is striving to modernize production processes by coordinating traditional, new, and future industries.

These coordinated efforts contribute to the comprehensive progress of Chinese manufacturing, establishing advanced manufacturing as a fundamental pillar of the modern industrial system. Innovation plays a central role in this transformation.

In September, the Chinese tech giant Huawei unveiled its second-generation flagship foldable smartphone, while Xiaomi released its first 'semi-foldable' device. Thus, Chinese smartphone manufacturers are engaged in fierce competition in the premium segment.

This confidence is based on domestic breakthroughs. In recent years, China has achieved mass production of ultra-thin flexible glass only 30 micrometers thick, which withstands over a million bends without damage. By the end of July, China registered 5.74 million valid domestic patents, and its number of international Patent Cooperation Treaty applications ranked first globally for seven consecutive years.

To accelerate commercialization, China is strengthening the link between scientific research and industrial application, improving the efficiency of turning innovations into market-ready products. For example, although computed tomography (CT) has been developing for a century, offering increasingly accurate detection, the rapid growth of electric vehicle production created a battery quality control problem. Responding to this challenge, Sunwoda Electronic Co., Ltd., in collaboration with Dalian University of Technology, successfully developed high-speed multimodal CT equipment for online battery inspection. This system allows for non-destructive testing and significantly improves evaluation efficiency.

Since the beginning of this year, China has intensified the development of a comprehensive service system to transform scientific and technological achievements into practical applications. Two new national centers for industrial innovation have been established at the R&D stage. At the pilot stage, the national network includes 21 advanced manufacturing platforms and over 1800 reserve facilities. At the incubation stage, the country recognized the first batch of 14 'excellent' level technology business centers and 402 standard-level centers, which oversee more than 425,000 enterprises and teams.

Reflecting these achievements, according to the World Intellectual Property Organization's 2026 report, China holds 25 out of 100 global innovation clusters, the highest figure in the world for the fourth consecutive year.

How does an advanced manufacturing enterprise differ from a regular factory?

An example is the Lenovo production center in Shenzhen, Guangdong Province, where over 5,000 orders are processed daily, 60% of which are highly individualized across more than 50 product lines and 20,000 configurations. Despite this complexity, the 100-meter production line operates with astonishing flexibility. Equipped with machine vision robotic arms, it performs precise assembly with millimeter accuracy and switches between product models with minimal downtime. Ninety percent of orders are shipped within 24 hours.

What makes advanced manufacturing 'advanced' is the modernization of production methods. Li Yan, deputy head of the department responsible for industrial economics research at the State Council Research Center, stated: 'Compared to traditional manufacturing, advanced manufacturing has generally shifted towards digitized, intelligent, lean, and green production.'

Currently, 35,000 basic 'smart' factories operate in China, over 8,200 advanced-level 'smart' factories, and over 500 'excellent' level 'smart' factories. More than 30% of manufacturing enterprises above a certain size with annual revenues exceeding 20 million yuan (about US$2.98 million) now employ artificial intelligence technologies.

Global industrial competition is no longer limited to production capacity; it now encompasses integrated manufacturing and service ecosystems. For instance, China's leading heavy machinery manufacturer, Xuzhou Construction Machinery Group, has gone beyond selling equipment, offering comprehensive solutions for green mining, securing major contracts with global firms such as BHP.

Similarly, Haier Smart Home provides customized home appliance packages for smart homes, with revenue from application scenarios continuing to grow.

Xin Guobin, Deputy Minister of the Ministry of Industry and Information Technology, noted: 'In the future, we will promote deeper integration of advanced manufacturing and modern services, accelerate the development of new business models and forms, such as platform design and personalized customization, and advance the development of service-oriented manufacturing.'

Ultimately, what makes advanced manufacturing 'advanced' is the optimization of the industrial structure. An embroidery machine can do more than just embroider; it can function as embodied intelligence. The machine weaves sensory and main threads, braiding the glove of embodied intelligence as a whole and ensuring more accurate capture of hand movement data.

Li emphasized: 'The essence of advanced manufacturing lies in comprehensive innovation and modernization across the entire production sector.' Advanced manufacturing includes both manufacturing industries created by new technological breakthroughs and traditional manufacturing industries that have been comprehensively transformed and rethought through the application of advanced technologies, processes, and management methods.

Influenced by this momentum, traditional industries are experiencing a revival. In the first half of this year, sales volume in food production, apparel, and paper industry grew by 11.6%, 9.2%, and 8.9% year-on-year, respectively. Meanwhile, new and future industries are rapidly expanding: China accounts for nearly 70% of global quadruped robot sales; over 400 humanoid robot models have been developed in China, accounting for more than half of the global volume; and the preclinical trial cycle for new drugs, such as targeted cancer therapy, has been reduced by 40%.

As China stimulates advanced manufacturing, it advances its commitments to achieving excellence and accelerates the development of a modern industrial system where this sector serves as its foundation.

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Chinese manufacturing develops through flexibility and innovation
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Chinese manufacturing develops through flexibility and innovation

China's manufacturing continues to capture the attention of consumers worldwide. According to data from the Ministry of Commerce of China, from January to July of this year, foreign visitors spent 263.6 billion yuan ($39.28 billion USD) in China, which is 27.8% more than in the same period last year. Furthermore, the number of international travelers applying for tax refunds on departure has more than tripled during the same period.

The question of why China maintains its status as the world leader in the volume of added value of production for 16 consecutive years can be clarified by analyzing several popular products. The Yuyue area, located in Zhejiang province in eastern China and known as the 'world supermarket,' demonstrates how local enterprises transform small goods into large businesses, even though it is neither on the border nor by the sea.

Recently, the 'palm-sized hat' went viral on social media. This product quickly transitioned from an early morning trend to mass production in Yuyue by noon, and then rapidly reached markets in Europe and the United States. Earlier this year, the 'crying horse' toy unexpectedly became popular, and manufacturers from Yuyue increased production within 48 hours. By mid-year, they had already stocked items related to the World Cup even before the tournament began.

Yuyue has moved away from the old model of passive contract manufacturing (OEM). It is now capable of determining market demand with 'zero time lag' and linking it to production almost without any obstacles. Instead of waiting for the next trend, this region is increasingly helping to shape consumer trends. The transition from waiting for the wind to catching it illustrates how flexible market thinking can quickly transform emerging demand into business opportunities.

In May this year, Chinese tech giant Huawei introduced its Tau Scaling Law, replacing 'geometric scaling' with 'temporal scaling' and successfully developing and launching mass production of hundreds of chip models. Similarly, new energy vehicle manufacturer BYD abandoned traditional cylindrical and prismatic battery designs, developing its Blade Battery, which solved key safety issues in power batteries through structural innovations. Motorcycle manufacturer ZXMOTO also chose a different path, developing a three-cylinder water-cooled engine that attracted attention at an international racing track.

These examples show not just a change in technological approaches, but a deeper wisdom of industrial renewal: by daring to break established norms and seek new paths, seemingly insurmountable bottlenecks can turn into breakthroughs of independent innovation.

In recent years, new products have been launched onto the market at high speed, and new technologies are developing at an accelerated pace. A key reason is that China plans ahead, laying the foundation and building potential to overcome changes. For example, in the field of artificial intelligence (AI), electricity is the fundamental basis. Creating large AI models requires not only advanced AI chips and complex algorithms but also abundant, reliable energy infrastructure. Thanks to continuous investment over many years, China has built the world's largest ultra-long-distance power transmission network and renewable energy system, giving it a distinct energy advantage in the AI race.

From 5G networks and modern logistics needed to support advanced manufacturing, to cultivating a large pool of highly qualified engineers and technical specialists, China has consistently invested in key foundations. These efforts have formed a comprehensive, multi-level industrial structure covering all major sectors and strengthened the resilience of the manufacturing sector, allowing it to withstand pressure and adapt to changing conditions.

China transformed its manufacturing sector into a global power not through a 'neighbor-exploiter' policy or zero-sum competition, but through openness, cooperation, and mutual benefit. In Africa, in the China-Egypt Economic and Trade Cooperation Zone in the Suez Canal, industries covering new energy sources and household appliances were created, providing jobs for over 10,000 people. In Southeast Asia, China's textile sector has been closely integrated into the production chains of Malaysia and other countries, forming a model of cooperation: 'China supplies raw materials, ASEAN produces finished clothing, and the world opens markets.'

In Latin America, numerous Chinese automakers have opened factories in Brazil, stimulating local industrialization through capital investment and the development of local talent. All of this highlights the flexibility, strong execution, and openness of Chinese manufacturing. As profound changes occur—changes unseen in a century—and a new round of scientific and technological revolution and industrial transformation gains momentum, Chinese manufacturing, remaining dynamic and adapting to changes, will be full of vitality and achieve even greater success.

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