China’s industrial economy consolidates foundations and fosters fresh growth drivers, interim data reveals steady expansion

Figures released by the Ministry of Industry and Information Technology on 20 July outline China’s industrial performance for the first six months. Value-added output of industrial enterprises above designated size rises by 5.4 per cent year on year, with industry contributing more than 35 per cent to national economic growth.

The Outline of the 15th Five-Year Plan places priority on developing a modern industrial system underpinned by advanced manufacturing. Site visits to manufacturing workshops and key industrial hubs across the country show sustained progress in upgrading China’s industrial sector, delivering steady momentum for high-quality economic development.

Industrial fundamentals grow increasingly robust.

Intelligent production lines operate at full tilt across multiple regions. An industry-leading assembly line for laser equipment runs inside a 74,000-square-metre smart plant in Jinan, Shandong Province, finishing one unit every seven minutes at peak efficiency. A 1.2-million-tonne ethylene complex operated by PetroChina starts production in the Shangku Industrial Park of Korla, Xinjiang, delivering full-chain low-carbon manufacturing capable of cutting carbon emissions by 1.37 million tonnes annually. Automated production lines function smoothly at an embodied intelligence super factory in Beijing Economic-Technological Development Area, where force and vision sensors support precision assembly. Production line reconfiguration takes fewer than 15 minutes, enabling mixed manufacturing of multiple product models simultaneously.

The latest set of economic indicators mirrors stable industrial expansion. In the first half of the year, value-added industrial output for enterprises above designated size registers the 5.4 per cent annual increase. Combined profits of these industrial firms climb 18.8 per cent year on year in the first five months. The industrial sector maintains stable operation and acts as a core stabiliser for broader economic activity.

Key industries shore up overall industrial performance. At a shipyard in Nantong, Jiangsu Province, assembly proceeds on the third 24,000 TEU methanol dual-fuel container vessel. The first vessel from this seven-ship series completed delivery on 25 June, while two dry docks maintain full order books stretching to 2030. Equipment manufacturing, led by the shipbuilding sector, accounts for 23.5 per cent of growth in value-added industrial output over the six-month period.

Policymakers keep rolling out targeted measures to boost growth across ten priority industrial sectors. Thirty-two out of forty-one major industrial categories record output growth. Sectors including machinery, electronic information manufacturing, new energy vehicles, electrical machinery and special-purpose equipment together contribute over half of total industrial expansion.

Major industrial provinces deliver prominent support to national growth. The ten largest industrial provinces record an average industrial value-added growth rate of roughly 7 per cent in the first half of the year. All thirty-one provincial-level regions have published their respective 15th Five-Year Plan outlines, with the ten industrial powerhouses laying out detailed plans for advanced manufacturing. Jiangsu aims to build an internationally competitive advanced manufacturing base. Zhejiang pushes forward a distinctive modern industrial system and integrated high-quality development for manufacturing and services. Henan targets a 30 per cent share of strategic emerging industries in industrial value-added output by 2030. Industrial scale continues to expand alongside rising levels of technological innovation.

Enterprises focused on niche market segments maintain stable operations. Robotic arms carry out precision soldering, component mounting and quality inspection at an interconnected smart factory operated by CosmoPlat in Hefei. Intelligent control modules equipped with AI algorithms optimise compressor operation to capture surging demand for air conditioning units across European markets. The factory supplies 40 million intelligent air-conditioner controllers in the first half of the year, marking a 20 per cent year-on-year increase.

Value-added output from national-level specialised and sophisticated “little giant” industrial enterprises above designated size rises by 10.4 per cent over the six months. China hosts 17,600 such enterprises, which develop proprietary technologies within niche sectors, reinforce weak links in industrial supply chains and sustain stable industrial expansion.

New growth drivers gather greater strength.

The 15,000th embodied intelligence robot rolls off production lines from Zhiyuan Robotics on 28 June, ready for deployment in smart manufacturing workshops. Output growth from intelligent robotics firms reflects the rising vitality of new economic drivers. New industries represented by high-end manufacturing, digital economy and advanced services contribute more than 40 per cent to economic growth in the first half of the year.

Multiple technological breakthroughs emerge across industrial tracks. Mass production begins globally for T1200 ultra-high-strength carbon fibre. Kimi K3, an open-source large-scale artificial intelligence model with leading global parameters, is unveiled. The Long March 10B carrier rocket achieves controlled recovery of its first-stage booster.

Value-added output of high-tech manufacturing enterprises above designated size increases by 13.3 per cent year on year. Subsectors including integrated circuit manufacturing and intelligent vehicle equipment manufacturing related to artificial intelligence maintain growth above 30 per cent. Digital and intelligent technologies continuously unlock fresh potential within the real economy.

AI visual inspection systems identify microscale defects automatically, lifting inspection efficiency fivefold compared with manual operations. Industrial large models accelerate screening processes for antibodies and small-molecule medicines, shortening pre-clinical research cycles for targeted anti-tumour therapies by 40 per cent. China continues advancing the “AI Plus” initiative built upon local industrial practice.

More than 30 per cent of large-scale manufacturing enterprises adopt artificial intelligence technologies. The country has built over 56,000 basic-level smart factories, more than 9,000 advanced smart factories and over 500 elite smart factories, alongside fifteen benchmark smart factory operators. Integrated scientific innovation and industrial upgrading generate amplified development effects.

Shougang Group deepens research into hydrogen energy applications alongside low-carbon transformation and technical innovation within metallurgy. The group has resolved multiple industrial bottlenecks after four years of hydrogen energy research, while exploring applications in heating supply and chemical production. Authorities advance both the upgrading of traditional industries and the cultivation of emerging and future industries.

The bio-manufacturing sector keeps expanding with total industrial output reaching approximately 1.1 trillion yuan. The world’s first implantable brain-computer interface medical device secures market approval. Embodied intelligent hardware undergoes rapid iteration, with more than 230 enterprises launching over 400 robot models. Total annual shipments of such equipment are set to surpass 100,000 units.

Senior officials from the National Bureau of Statistics confirm continued policy focus on steady progress. Authorities will channel resources into nurturing emerging and future industries and renovating traditional manufacturing, supporting smooth transitions between old and new growth engines.

Optimism over industrial prospects continues to strengthen, underpinned by improved market governance and supportive institutional frameworks. Regulators strengthen efforts against disorderly competition. The State Administration for Market Regulation issues updated guidance on enforcing anti-unfair competition laws. Multiple central departments release mandatory national standards covering photovoltaic products and intelligent connected vehicles. Industry forums and regulatory tools including capacity monitoring and enterprise consultations guide industrial players to shift focus from blind capacity expansion to value creation.

A growing number of industrial sectors prioritise quality improvement over price competition. Photovoltaic participants limit low-end production while advancing research and industrialisation of perovskite and tandem solar cells. Export portfolios within equipment manufacturing move up global value chains, with export delivery value accounting for 75 per cent of turnover among large-scale industrial enterprises.

Policy frameworks facilitate smoother factor circulation. A materials manufacturer in Deyang, Sichuan Province, cooperates with universities to develop technologies for unconventional oil and gas extraction. Supported by tiered incubation schemes for tech firms, the enterprise achieves national “little giant” status, secures special research funding and accelerates intelligent production line construction and capacity expansion.

Authorities speed up the formation of closed loops linking scientific research, technical services and industrial application. A second batch of 111 pilot medium-test platforms enters official cultivation programmes. Regulators certify 14 top-tier and 402 standard-level incubators for technology-focused enterprises. National key science and technology programmes support breakthroughs in core foundational technologies, translating technical advantages into industrial and market competitiveness.

High-standard opening-up injects extra vitality into industrial development. Multinational corporations deepen cooperation within China’s manufacturing ecosystem. Mercedes-Benz Group expands engagement with domestic hydrogen energy supply chains. Schaeffler of Germany invests in a humanoid robot manufacturing base within China. Brain-computer interface developer SynchronMed attracts successive rounds of investment from global institutions including Orbimed and Lilly Asia Ventures.

Authorities roll out an action plan to stabilise and optimise foreign investment, piloting wider market access in value-added telecommunications and biotechnology. Major industry events such as the World Artificial Intelligence Conference and World Robot Conference host global participants each year, sharing Chinese approaches for technological innovation, scenario implementation, industrial development and cross-border governance.

China’s complete industrial ecosystem, abundant application scenarios and superscale domestic market sustain ongoing innovation momentum. The industrial sector presses ahead with quality upgrades, reinforcing foundations for high-quality growth and sustaining steady progress of the national economy.