China’s Road to Advanced Manufacturing and Innovation: A Success Story

From the rapid rise of new energy vehicles (NEVs) to the recent breakthroughs of DeepSeek, China has demonstrated a strong momentum in manufacturing sector and technological innovation. Looking back on China’s development over the past decade, it is not hard to tell that the cultivation of new quality productive forces is based on long-term planning and strategy.

Ten years ago, in 2015, China announced the “Made in China 2025” Initiative to stimulate the modernization of its industrial sector during the 13th and 14th Five-Year Plans. At that time, facing economic and geopolitical challenges, China needed to upgrade its industrial base by adopting advanced technologies of from the Fourth Industrial Revolution. The modernization effort aimed to move beyond the country’s role as the “world’s factory,” which had long relied on low labor costs and a strong position in the global supply chain. Instead, China sought to transform into an innovation-driven industrial powerhouse, thus boosting domestic added value and increasing wages.

The initiative outlined nine key tasks and ten priority sectors, aiming innovation and the adoption of cutting-edge information technology to enhance productivity and product quality. It also emphasized fostering world-class brands, and prioritizing environmental sustainability and energy efficiency.

Since 2015, the country has made significant strides in innovation across various sectors. I select ten remarkable innovations and advancements that are attracting global attention.

High-Speed Rail Expansion: China has continued expanding its high-speed rail network, making it the most extensive worldwide. The development of the Fuxing bullet trains, which can reach speeds of up to 350 km/h, exemplifies this progress.

5G Technology: China has been at the forefront of 5G technology development and deployment, with companies like Huawei and ZTE playing crucial roles in advancing 5G infrastructure globally.

Artificial Intelligence (AI): China has invested heavily in AI research and development. Companies like Baidu, Alibaba, and Tencent have significantly contributed to AI technologies, including natural language processing, computer vision, and autonomous driving. Recently, DeepSeek took the world by storm with its high performance and low development costs.

Quantum Computing: Chinese researchers have made groundbreaking advancements in quantum computing. In 2020, China claimed to have achieved quantum supremacy with its Jiuzhang quantum computer, which performed a calculation far beyond the reach of classical supercomputers.

E-commerce and Mobile Payments: Platforms like Alibaba’s Taobao and Tmall, along with WeChat Pay and Alipay, have revolutionized e-commerce and mobile payments, making China a global leader in digital transactions.

Renewable Energy: China has become the world’s largest producer of solar panels and wind turbines. China’s total installation of solar and wind power generating capacity accounted for 64 percent of the world total by the end of July, 2024. The country has made significant investments in renewable energy infrastructure, aiming to reduce its carbon footprint and combat climate change.

Electric Vehicles: China is the largest market for electric vehicles, with companies like BYD, NIO, and Xpeng leading the charge. In 2023, BYD surpassed Tesla as the more prominent leader in the sector. In 2024, China’s EV output accounted for 70 percent of the world total.

Space Exploration: China’s space program has achieved several milestones, including the Chang’e lunar missions, which successfully landed on the far side of the Moon, and the Tianwen-1 mission to Mars. The construction of the Tiangong space station is another significant achievement.

Biotechnology and Genomics: China has made substantial progress in biotechnology, particularly in genomics. Beijing Institute of Genomics has been a global leader in sequencing and genomic research, contributing to advancements in personalized medicine and agriculture.

Smart Cities and IoT: China has pioneered developing smart cities, integrating Internet of Things (IoT) technologies to improve urban living. Shenzhen and Hangzhou have implemented smart traffic systems, energy management, and public services to enhance efficiency and sustainability.

China’s recent advances inspire developing countries, especially Latin America, which faces problems related to the “Middle Income Trap.” This situation occurs when a country’s growth slows after reaching middle income levels. Growth slowdowns can often be attributed to the disappearance of factors that generate high growth during an initial phase of rapid development. As stated by Eva Paus, “many governments have never developed the policies and institutional environment to make the leap to high-tech or industrial economic development—what is often referred to as industrial policy.”

China’s experience has proven that industrial policies that create incentives for companies, universities, and research centers can help the country advance into the global value-added chain and overcome the “Middle Income Trap.” Inspiring leadership, scientific analysis of reality and the international situation, correct formulation of objectives, adequate planning, mobilization of society, and making market the decisive forces in resource allocation and growth, are fundamental to overcoming the economic backwardness we have seen in China in recent decades since the reform and opening-up policy began.

Currently, the country is managing to advance in its planning despite external restrictions on its development. Sanctions and boycotts, instead of dampening the spirit of the Chinese, are acting as stimulus for innovation and the development of new products, services, and brands of international excellence. Through material development and increased international competitiveness, new technologies have played an important role in improving the quality of life for millions. The numerous strategies employed to eradicate extreme poverty have been built upon the technological advances made over the past decade, demonstrating the transformative power of innovation in shaping a brighter future.

The author is Professor of International Political Economy, São Paulo State University, Brazil.

The article reflects the author’s opinions, and not necessarily the views of China Focus.