High-tech manufacturing powers structural upgrade of Chinese industrial production

Editor's note: Liu Chunsheng is an associate professor at the Central University of Finance and Economics. The article reflects the author's opinions and not necessarily the views of CGTN.

The Service Industry Survey Center of the National Bureau of Statistics and the China Federation of Logistics and Purchasing jointly released the manufacturing Purchasing Managers' Index (PMI) for February on Wednesday. It stands at 49.0, down 0.3 points from the previous month. The manufacturing sector showed weaker momentum, reflecting short-term pressure from traditional industries and seasonal factors.

Against the backdrop of a weaker overall PMI, high-tech manufacturing maintained a strong leading position. The high-tech manufacturing PMI reached 51.5 in February, staying in the high expansion range for three consecutive months, making it the most stable growth engine of the manufacturing sector.

This data contrast clearly outlines the core features of China's manufacturing sector: Short-term pressure on the aggregate economy, continuous structural optimization, and accelerated growth of new drivers. Traditional industries have weakened due to soft demand and off-season effects, while high-tech manufacturing – represented by technological innovation, high-end equipment and new-generation information technology – has maintained high expansion with stronger technological barriers and market resilience, becoming a key force in stabilizing the industrial sector and driving transformation and upgrading.

Industrial economic data for 2025 confirmed the strong momentum of high-tech manufacturing. According to the 2025 Statistical Communique on National Economic and Social Development released by the National Bureau of Statistics, the added value of industrial enterprises above designated size in high-tech manufacturing rose 9.4% year on year, significantly faster than the average growth of all industrial enterprises above designated size. Its share in the total added value of industrial enterprises above designated size rose to 17.1%, with a growing industrial weight.

In terms of industrial structure, high-tech manufacturing has formed a multi-pillar pattern. The added value of equipment manufacturing increased by 9.2%, and that of digital product manufacturing by 9.3%. Output of intelligent and high-end products such as service robots, servers and mobile communication base station equipment achieved double-digit growth. Exports of high-tech products maintained rapid growth, with steadily improving competitiveness in the global industrial chain.

Corporate efficiency has also improved. Profits of high-tech manufacturing enterprises rose 13.3% in 2025, higher than the overall industrial profit level, reflecting higher added value and profitability of technology-intensive industries. R&D investment continued to increase, with total national R&D expenditure up 8.1% year on year, accounting for 2.8% of the country's GDP, providing solid support for technological breakthroughs and industrial upgrading.

As the world's largest manufacturing country, China has maintained its leading position for many years. As traditional growth drivers slow down, high-tech manufacturing has taken the lead in stabilizing growth and adjusting structure with faster growth, higher quality and stronger efficiency, steadily advancing China from a "big manufacturing country" to a "strong manufacturing country".

2026 marks the start of the 15th Five-Year Plan period (2026-30). The Ministry of Industry and Information Technology has identified key tasks for 2026, including developing emerging pillar industries such as integrated circuits, new displays, new materials, aerospace, low-altitude economy and biomedicine, and promoting the shift from technological breakthroughs to large-scale industrialization. Future industries including 6G, quantum technology, brain-computer interface, embodied intelligence and commercial aerospace will be accelerated, creating new growth areas with new technologies.

Eight ministries have jointly launched the "AI + Manufacturing" initiative to promote large-scale application of industrial large models, intelligent robots and digital twins in production. The construction of smart factories and industrial internet platforms will enhance intelligence across R&D, production and operation, unlocking efficiency dividends through digital and intelligent transformation.

China remains committed to expanding development space through high-level opening-up, shortening the negative list for foreign investment and encouraging foreign capital to flow into high-end manufacturing, R&D and design. Relying on platforms such as pilot free trade zones and cross-border e-commerce comprehensive pilot zones, China will upgrade trade in high-tech products and technological service cooperation, move up to high value-added links in the global industrial chain, and provide stable supply and growth momentum for the world economy.

German Chancellor Friedrich Merz paid his first official visit to China in early 2026, accompanied by executives of about 30 leading German enterprises, including Volkswagen, BMW, Mercedes-Benz, Siemens, Bayer and Airbus, covering key German industries such as automobiles, machinery, chemicals, aviation and high-end manufacturing. International cooperation in high-end manufacturing strengthens China's industries, achieves win-win results for global partners, stabilizes industrial chains and international relations, and serves as an important link between high-quality development and high-level opening-up.

The structural divergence revealed by the February manufacturing PMI is an inevitable process of China's economy shifting toward high-quality development. Short-term fluctuations in traditional industries do not change the long-term positive trend. With sustained high prosperity, growth and efficiency, high-tech manufacturing has become the core force driving upgrading through economic cycles.

China's high-tech manufacturing is shifting from "scale growth" to "quality leadership" and from "individual breakthroughs" to "ecosystem formation". Driven by innovation and high-level opening-up, high-tech manufacturing will continue to consolidate its position as the "locomotive" of global manufacturing, reshape industrial competitive advantages with new-quality productive forces, and inject sustained and strong impetus into the country's high-quality economic development and global economic recovery.