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CHINA MANUFACTURING


China’s industrialization speed is unseen in history.  It took the US and the British almost a century each to become a industrial and manufacturing superpower.  It only took China 15 to 20 years.

From about 3% global manufacturing export in 1995, China is now the world's leading manufacturing factory, producing a massive share of approximately 30% of global manufacturing output, far exceeding the US, Japan,  Germany, South Korea and India combined, dominating numerous advanced industries from electronics and machinery to metals, and leading in most critical and strategic tech sectors such as AI, clean green energy and transportation, aerospace, quantum communication and computing, industrial and consumer internet of things, biotechnology and pharmaceuticals, chemicals, robotics, big data, fintech, advanced materials, shipping and rare earths mining, extraction, separation, purification and critical materials.

Its dominance stems from strong government led long term planning and support, massive and targeted investment in innovation and science and technology, scale, manufacturing infrastructure and talent, supply chain integration, and rapid tech innovation from opportunity identification, formation of ideas, research, pilot scaling, commercialization, adoption and the development of integrated and complete supply chains and ecosystems from manufacturing hardware to software and talent development.
 


The speed of China’s modernization and socio-economic, technology and industrial development is truly remarkable and unseen in human history.  It took US almost a century to surpass the UK and become the world’s manufacturing and technological giant.  It took China less than 2 decades to surpass the US and dominates the world.

China is constantly moving up the value chain, transforming, developing new productive forces and upgrading its advanced and basic manufacturing to maintain global competitive edge with a focus on quality and value-adding to new as well as traditional industries such as steel, non-ferrous metals, machinery and textiles that accounts for nearly 80 percent of the manufacturing sector's total output, giving the false impression that China manufacturing has slowed. 

 

China is actively formulating domestic and global policies to stimulate domestic consumption and diversifying its export markets for manufactured products to the BRI and global south countries in order to better withstand external pressure and challenges such protectionism, weaponization of tariffs and the weakening of international trade organizations including WTO.

Given China is the locomotive and major engine in global manufacturing and supply chains, China's sound development of manufacturing is essential in injecting confidence, stability and impetus to global economic recovery and growth.

China’s manufacturing is now fuelled by AI driven smart and intelligent technologies, new productive forces and emerging economic engines.

 

China’s manufacturing is underpinned by its well-developed ecosystem - a strong and extensive network of suppliers, manufacturers, and logistics companies. The country's massive manufacturing ecosystem enables China to remain unmatched in its economic resilience around the world, especially during adverse global economic challenges.

China understands that innovation and mastering core technology in key fields is the future and the driving force of manufacturing.

China’s ability to produce low cost but high-quality products for the global markets is critical in helping to raise the standard of living of importing countries  

 


In summary, China’s superiority in manufacturing is underpinned by:

  • Complete and Independent Industrial Ecosystem: China possesses a full, integrated network of suppliers, manufacturers, and logistics, allowing for quick pivots and rapid product delivery.

  • Government Support and Planning: Consistent policies, such as the Five-Year Plans, drive investment in tech, infrastructure, and strategic industries, fostering innovation and stability.

  • Technological Advancement: A strong research and development and education system that produces a vast pool of STEM graduates and engineers, crucial for advanced manufacturing.  China graduates more than half of the global STEM students each year – more than the US and G7 countries combined.  Seven of the top 10 leading STEM research institutions and universities are now located in China and more than 75% of the world’s impactful research papers are produced by Chinese universities and research institutions each year.

    China’s future manufacturing will be guided by new quality productive forces, green tech, AI, robotics, automation, IOT, new advanced materials and upgrading industries beyond low-cost labour.

  • Vast and Efficient Infrastructure: Well-developed industrial infrastructure, supply chains and ecosystems, logistics, and skilled technical workers create efficiency and reduce costs.

  • Infrastructure: World-Class Ports, Transportation, and digital infrastructure facilitate exports and domestic trade.

  • Market Scale and Adaptability: A huge domestic market and ability to quickly tailor solutions for rapid changes in global demands.

  • Workforce and Investment: Rich and talented human resources, high-level education, and investment in private enterprises boost manufacturing power.

  • Stem Talent: China produces more STEM talents each year than the G7 countries combined.

  • Massive Global Trade Network: China’s massive BRI trade network and connectivity to over 150 countries including most of the global south countries.

  • Immense Domestic Market: A huge internal market allows companies to scale up and test products before global launch.

  • Investor Welcome: China welcomes foreign investment and competition and actively court foreign manufacturers with incentives and support policies. Competition spurs innovation.
     

China’s dominance in manufacturing is unlikely to change significantly for the decades to come.  China builds while other countries talk.