China’s “Made in China 2025” strategy has propelled it toward global smart manufacturing leadership, achieving 86% of its targets despite international scrutiny. The initiative has driven advancements in aerospace, robotics, and telecoms. Experts predict China’s smart manufacturing sector will grow 18.2% annually, reaching $158.2 billion by 2030. Focused on integrating AI and advancing next-gen technologies like 6G, China aims to boost its digital economy. With resilient supply chains and innovation, it’s set to outpace competitors and solidify its global dominance.
China’s bold and visionary “Made in China 2025” industrial strategy has positioned the nation as a strong contender for global leadership in smart manufacturing. While there are still challenges to overcome in key technological bottlenecks, a recent report by Renmin University of China highlights the significant progress achieved so far.
Unveiled a decade ago, the “Made in China 2025” initiative was designed to catapult China to the forefront of cutting-edge industries such as aerospace, electric vehicles, robotics, and telecommunications. Despite Beijing’s cautious approach in referencing the policy publicly in recent years due to international scrutiny—particularly from the United States—the strategy has undeniably driven substantial advancements in various sectors, according to Wang Wen, dean of Renmin University’s Chongyang Institute for Financial Studies.
Although Beijing has yet to release an official evaluation of the initiative, an analysis conducted last year revealed that 86% of the targets set in the plan had been met. This remarkable achievement underscores the strategy’s impact on China’s industrial development.
At a US congressional hearing earlier this year, experts expressed concern over China’s rapid strides in advanced manufacturing, warning that the United States risks “losing the next industrial revolution.” Nevertheless, Wang Wen believes China should remain steadfast in its efforts to enhance its manufacturing capabilities while fostering independent technological innovation. “China will become the centre for global smart manufacturing in the next five to 10 years,” he predicted, citing projections from Grand View Research.
The US-based consultancy forecasts that China will dominate the global smart manufacturing market, with revenue expected to grow at an annual rate of 18.2%, reaching $158.2 billion by 2030. In comparison, the US smart manufacturing sector is projected to grow at a slower pace of 13.6% annually, reaching $152.1 billion by the same year.
Looking ahead, China’s focus will shift to integrating transformative technologies such as artificial intelligence into its manufacturing processes, according to the Chongyang report. This integration is expected to boost the digital economy’s contribution to China’s GDP from 42.8% in 2023 to over 50%, or even as high as 60%, in the coming years.
China’s government work report for 2025 further emphasizes the country’s commitment to advancing next-generation technologies, introducing concepts like “6G networks” and “embodied AI” for the first time. To address critical challenges in areas such as semiconductors, precision instruments, and tech software, the Chongyang report calls for increased investment in fundamental science and research and development.
While the US aims to reshore manufacturing, it faces significant hurdles in completely replacing its reliance on China’s well-established supply chains, which have reshaped global manufacturing over the past decade. Cai Tongjuan, a research fellow at the Chongyang Institute, notes that while Southeast Asia and India are emerging as new manufacturing hubs, their supply chains remain less developed compared to China’s.
As China continues to push the boundaries of high-end and smart manufacturing, its position as a global leader appears increasingly secure. By embracing innovation and addressing key challenges, the nation is poised to further strengthen its influence in the manufacturing sector and beyond.
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