From NEVs to robotics, China is moving up the manufacturing chain

From electric vehicles dominating urban fleets to robots operating factory floors, China's manufacturing sector is rapidly evolving, driven by technological innovation and policy support.

Across major Chinese cities like Shenzhen, electric vehicles (EVs) are ubiquitous. The southern coastal city has led the charge in green transport, with every bus and taxi running silently on electric power for years. Other cities are following suit. In neighboring Guangzhou, all buses had already transitioned to pure electric models by 2023. This shift reflects China's broader push to lead in green and smart manufacturing.

At a State Council press briefing last week, officials highlighted robust growth in April's advanced manufacturing output. New Energy Vehicles (NEVs) production surged by 38.9 percent year-on-year, while lithium-ion battery output for vehicles jumped by 61.8 percent. Smart product sectors, including unmanned aerial vehicles and intelligent automotive equipment, expanded by 74.2 percent and 29.3 percent, respectively, far outpacing traditional industrial growth rates.

International demand for Chinese manufacturing technology is also on the rise. In Latin America, Chinese EVs have surged across the region. A 2024 report noted that Chinese brands dominated most of Costa Rica’s top 10 best-selling EV models, with the country leading the region in EV adoption at 34.3 vehicles per 10,000 residents.

The rise of NEVs exemplifies China's strategic pivot toward high-end, intelligent manufacturing. This transition extends beyond automotive innovation, permeating industries from robotics to industrial automation. Spearheading the breakthroughs in advanced manufacturing are over 140,000 specialized and technologically sophisticated small and medium-sized enterprises, including 14,600 "little giant" firms.

China's industrial robots are now integral to global supply chains. At Midea's washing machine factory in Jingzhou, central China's Hubei Province, humanoid robots conduct equipment inspections and maintenance, marking a milestone in industrial automation. JAKA Robotics showcased its collaborative robots at the 2025 Hannover Messe in Germany, demonstrating millimeter-level precision in tasks as delicate as handling potato chips. Geek+, a Beijing-based logistics robotics firm, has deployed its intelligent warehousing systems for global clients like Siemens, underscoring China's expanding influence in smart manufacturing solutions.

In the first quarter of 2025, 3D printer and industrial robot outputs grew by 44.9 percent and 26 percent respectively, with industrial robot production alone accelerating to 51.5 percent in April.

Government policies have been pivotal to this transformation. Initiatives such as large-scale equipment upgrades and consumer trade-in programs are accelerating industrial modernization. In the meantime, the rise of artificial intelligence has become central to China's manufacturing transformation, with the government prioritizing the "AI+" initiative to integrate AI across industrial chains as part of its new industrialization strategy.

Key measures include developing advanced manufacturing systems, deploying AI-powered industrial upgrades and scaling industrial internet applications. In 2025, sector-specific programs have accelerated intelligent upgrades in the steel, automotive, and electronics industries through standardized solutions and technology adoption.

"China is the world's largest manufacturing powerhouse, and this gives us a natural advantage in both application scenarios and scale for developing artificial intelligence," noted Wang Baoyou, chief engineer at the China Academy of Industrial Internet Research.

According to Wang, China's industrial sector has formed unique strengths characterized by completeness, diversity, and scale, making it the only country in the world that encompasses all industry categories classified by the United Nations. "For 15 consecutive years, China has maintained the world's largest manufacturing sector, providing abundant data resources and real-world scenarios for the integration, innovation, and application of AI technologies," he said.

The use of AI by enterprises to enhance production efficiency is beginning to take shape. At a shipyard in east China's Jiangsu, AI-powered welding robots now handle irregularly shaped components with 0.5mm precision, eliminating manual programming and adapting to new tasks within seconds. "Traditional robots require hours of reprogramming for production changes," explained engineer Wang Chenguang. But AI-driven systems, like the one Wang has adopted, make China's 2 million industrial robots – the world's largest fleet – viable for customized manufacturing.

Experts attribute China's manufacturing strides to sustained policy support and industrial agility. "Targeted policies have provided a robust foundation for sustainable growth and technological upgrading," said Wan Zhe, a professor at Beijing Normal University. As China continues to integrate AI and robotics into its industrial base, its vision of a globally competitive, innovation-driven manufacturing ecosystem is steadily becoming a reality.