Innovation and Transformation Driving Modernization and Global Competitiveness

China has undergone a remarkable transformation, evolving from a nation reliant on imported goods to the world's leading manufacturing hub, boasting the most extensive range of industrial sectors. This shift is a testament to the country's commitment to developing its real economy, a path President Xi Jinping has consistently emphasized.

Traditional manufacturing remains the cornerstone of China's industrial strength, playing a crucial role in stabilizing employment, generating fiscal revenue, and maintaining international competitiveness. These industries, encompassing sectors like steel, machinery, and textiles, contribute nearly 80 percent of the manufacturing sector's total value-added output.

President Xi Jinping has prioritized strengthening the manufacturing sector, leading efforts to transform and upgrade it through technology and innovation. His focus is on advancing high-quality development and modernization, especially in the face of global economic uncertainties. He frequently visits factories and enterprises, observing production processes and engaging with workers to gain firsthand insights into the progress of transformation and upgrades.

The concept of new quality productive forces, introduced in 2023, highlights the importance of traditional industries as a foundation for developing advanced capabilities. This approach emphasizes that developing new capabilities does not mean neglecting or abandoning established industries.

China has made significant progress in accelerating the transformation and upgrading of traditional industries, particularly through digital empowerment and green transitions. Technologies like the industrial internet, 5G, and AI are being widely implemented. Investment in technological upgrades in the manufacturing sector has seen substantial growth. Furthermore, key energy-consuming industries are reducing their energy consumption per unit of value-added output.

To achieve Chinese modernization, consolidating the country's industrial strengths is essential. Traditional industries are encouraged to move up the value chain, focusing on both scale and quality. Companies like the Luoyang Bearing Group Co., Ltd. exemplify this, leveraging innovation to achieve technological breakthroughs and increase the value of their products.

President Xi Jinping has emphasized the need to strengthen the manufacturing sector, build self-reliance, and cultivate high-quality talent to advance Chinese modernization. He stresses that innovation, particularly mastering core technologies in key fields, is vital for the lifeblood of manufacturing.