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China in elite global manufacturing club

Innovation investment and output aid industry's high-quality development

By Li Menghan | China Daily | Updated: 2025-12-31 09:03
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A worker is seen working at a Valeo plant in Wuhan, Hubei province. [Photo provided to chinadaily.com.cn]

The growth in China's manufacturing sector in 2024 propelled it to the elite club of the world's leading manufacturing powers, surpassing Japan for the first time, according to a report released on Tuesday.

The report, which evaluates manufacturing development indexes across nine major economies, showed the United States leading by a wide margin in 2024 with a score of 190.89. Germany, China and Japan followed in a second tier, each scoring between 120 and 140.

China has joined the ranks of global manufacturing powers alongside the US, Germany and Japan, with development levels and capabilities comparable to those of Germany and Japan, the report said.

The annual report has been published by the Chinese Academy of Engineering's Centre for Strategic Studies, the China Academy of Machinery Science and Technology Group Co, and the China Industrial Control Systems Cyber Emergency Response Team. It evaluates the manufacturing sector using five indicators: scale development, quality and efficiency, structure optimization, innovation and development, and sustainable development.

Qin Hanjun, chairman of the China Academy of Machinery Science and Technology Group Co, speaking at a news conference in Beijing, said China's manufacturing development index has remained above 120 for four consecutive years.

Based on segmented characteristics and the alignment between the index and actual performance, China has entered the ranks of second-tier manufacturing countries, Qin said. The index also highlights China's significant potential for future breakthrough growth in the sector.

All five indicators for China showed positive growth, reinforcing its position as the world's largest manufacturer, Qin said. Among them, the innovation and development indicator recorded the strongest year-on-year growth, underscoring innovation as the core driver of manufacturing development.

"The continuous increase in innovation investment and innovation output has provided solid support for the high-quality development of China's manufacturing industry," Qin said.

He said research and development investment in the manufacturing sector rose from 0.85 percent in 2012 to 1.82 percent in 2024. China also ranked first for two consecutive years — 2023 and 2024 — in the number of Patent Cooperation Treaty applications.

China has achieved major breakthroughs and taken a leading position in sectors including information and communication equipment, advanced rail transit equipment, electrical power equipment and new energy vehicles, Qin said. He stressed the importance of treating manufacturing development as a long-term national strategy and reaffirming the role of the real economy within the national economy over the next decade.

You Zheng, president of Huazhong University of Science and Technology and an academician of the Chinese Academy of Engineering, outlined several key trends while explaining a "green book" on technological innovation in the manufacturing sector.

He cited a global shift from efficiency-first to safety-first approaches in industrial chains, growing emphasis on green and low-carbon development, and intensifying geopolitical competition in technology.

China is accelerating the cultivation of new quality productive forces, transforming traditional industries through industrialization and green development, and strengthening self-reliance across industrial chains, You said.

By 2030, seven industries are expected to maintain world-leading positions and achieve breakthroughs in original innovation, he said. They include information and communication equipment, advanced rail transit equipment, ship and marine engineering equipment, electrical power equipment, new energy and intelligent connected vehicles, textiles, and household appliances.

By 2035, six additional industries are expected to join the ranks of world-leading sectors, including new display equipment, robots, energy storage equipment, construction machinery, agricultural equipment and building materials, he added.

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