MagicLab's MagicBot X1 humanoid robots displayed at the WAIC conference 2026 in Shanghai, China, July 20, 2026. /VCG
This summer, China's smart manufacturing has taken the global spotlight. Chinese air conditioners are keeping Europe cool, transformer orders extend into 2027, robot breakthroughs are attracting overseas buyers and domestically developed chips have become a leading export category.
From 2 years to 4 months
How quickly can a transformer be delivered? For the same specifications, overseas manufacturers often require up to 24 months. In Changzhou, east China's Jiangsu Province, it takes just four.
The key lies in smart factories. At Guanghui Transformer, a production line involving around 10 operations can run with only two workers, as digital technologies have significantly improved productivity.
AI is also accelerating industrial design, with intelligent tools reducing transformer design cycles from four to five months internationally to about one.
Behind this speed is a complete industrial ecosystem. Most core components, including iron cores, coils and insulation materials, can be supplied within the Yangtze River Delta region. Integrated logistics hubs enable direct transport of transformers from Changzhou to Shanghai Port for exports to over 40 countries and regions worldwide, improving efficiency by 10-15%.
China accounts for around 60% of global transformer production capacity. In the first half of the year, mechanical and electrical products exports reached 9.36 trillion yuan (about $1.38 trillion), up 20.1% year on year.
Global 'must-haves'
Driven by persistent heatwaves across Europe, summer cooling products at the Yiwu International Trade Market are on high demand, Yiwu, Zhejiang Province, China, July 2, 2026. /VCG
Europe's long, hot summer has seen Chinese appliances gaining popularity, not simply because of price, but because of the ability to rapidly adapt products to local needs.
Midea's portable air conditioner is designed with European renters in mind. It is easy to install, requires no drilling and can be set up in about 20 minutes.
Meanwhile, the company's self-developed AI temperature-control technology reduces energy consumption by 40% compared to conventional inverter systems, meeting Europe's strict energy-efficiency and carbon standards.
Behind the compact appliance are advances in materials, algorithms and low-carbon manufacturing. In 2025, Midea secured more than 13,000 newly authorized global patents, including over 2,000 overseas.
According to China's General Administration of Customs, white goods exports, including air conditioners, fans and refrigerators, reached 107.91 billion yuan (about $15.95 billion) in the first half of the year.
The rising force of new 'new three'
China's "new new three" – AI, robotics and innovative medicines. /VCG
A new generation of Chinese exports is rising to the major league known as the "new three" – electric vehicles, lithium batteries and solar cells.
The first half of this year has seen robots, artificial intelligence and innovative medicines, dubbed the "new new three," emerged as key export sectors. But it's a relay race, not a fixed lineup.
Domestically developed surgical robots have seen exports more than triple to 480 million yuan (about $70.94 million). Cleaning robots have entered households worldwide, while humanoid robots, robotic dogs and bionic robots are expanding into more markets. Combined exports of cleaning and intelligent bionic robots have reached 18.09 billion yuan (about $2.67 billion).
The rapid growth is supported by China's complete industrial chain and vast domestic market, which allow companies to test, refine and iterate technologies quickly. Chinese humanoid robot companies are partnering with global manufacturers in aviation, semiconductors, automotive production and smart logistics.
According to the Ministry of Industry and Information Technology, China's humanoid robot output is expected to exceed 100,000 units this year.
Leading the export list
A Dongfang Suanxin (DFSX) chip displayed at the Shanghai New Expo Center during the WAIC conference 2026 in Shanghai, China. /VCG
Producing more than 1.5 billion chips a day may sound futuristic, but it is already the daily output of China's integrated circuit industry.
China has become the world's second-largest chip exporter. In June alone, its integrated circuit exports reached $38.21 billion, accounting for nearly 10% of the total export value, making chips China's largest export commodity and contributing 6.5 percentage points to the overall export growth rate.
Described as the "food of modern industry," chips reflect advances across the manufacturing chain, from materials, equipment to design and manufacturing.
Chinese companies have continued pushing technological frontiers. In May, Huawei proposed the "Tau (τ) Scaling Law," a framework that shifts the industry's primary optimization target from transistor size to signal speed. The company said it has already mass-produced 381 Tau (τ) Scaling Law chips across smartphones, AI, automotive and infrastructure over the past six years.
According to the World Bank, China's manufacturing value-added ranked first globally for 16 consecutive years by 2025, accounting for about 30% of the world's total. The country now has more than 600,000 science and innovation-driven enterprises, and has become a vital hub in global industrial, supply and value chains.
China's experience demonstrates that a comprehensive and efficient industrial system can not only support domestic economic growth, but also create opportunities for others' industrial upgrading, said Enrique Dussel Peters, professor at the National Autonomous University of Mexico.
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