When Beijing unveiled the Made in China 2025 strategy in 2015, it was clear that the world’s second-largest economy was no longer satisfied with being the “factory of the world.” The plan set a bold target: transform China into a global powerhouse of advanced manufacturing and innovation. A decade later, the impact of this vision is being felt not only in China but across global supply chains, industries, and markets.

For decades, China’s rapid rise as a manufacturing hub was built on low-cost labor, mass production, and export-led growth. However, policymakers recognised that this growth model was unsustainable in the long run. Rising wages, environmental pressures, and global competition demanded a shift from quantity-driven production to quality-focused innovation.

The strategy was designed as the roadmap for this transition, with a focus on upgrading China’s industrial capacity and embedding technology at the heart of growth.

Strategic sectors in focus

At the heart of the strategy, China has identified ten strategic industries where it intends to secure global leadership. These include next-generation information technology, high-end numerical control machinery and robotics, and aerospace and aviation equipment, each seen as vital to driving the country’s technological edge.

The initiative also prioritises maritime engineering and advanced shipping, cutting-edge rail systems and new-energy vehicles with smart capabilities. In parallel, investments are being channeled into power equipment and modern agricultural machinery, strengthening both industrial capacity and food security.

To ensure long-term competitiveness, China is also betting big on new materials and biomedicine, including high-performance medical devices. These areas are expected to shape the industries of tomorrow, from healthcare innovation to advanced manufacturing.

In each of these sectors, the strategy emphasises three pillars: breakthroughs in research, the creation of resilient domestic supply chains, and the ability to compete and lead on the global stage.

Innovation as the driving force

China’s top leader, Xi Jinping, is determined to outpace the West in new technologies. Chinese companies already dominate sectors such as electric vehicles and lithium batteries. Now, they are making rapid progress in newer frontiers like humanoid robots.

One key driver behind this technological push is the Communist Party itself. Its policies ensure that new ideas emerging from state labs and universities are quickly converted into commercial products. This process, often referred to as the “innovation chain,” has accelerated China’s progress across multiple industries. 

China has also dramatically increased R&D spending, ranking among the world’s top investors in research, and produces more science and engineering graduates annually than any other nation, fueling a thriving ecosystem of talent and ideas.
 Tech hubs such as Shenzhen and Hangzhou have become global laboratories of innovation, hosting giants like Huawei, BYD, and Alibaba alongside thousands of start-ups working on AI, green technologies, and advanced manufacturing.
Government support has further boosted the growth of start-ups. One striking example is Fusion Energy Tech in Hefei, which spun out of a nuclear research center just two years ago. It is already commercialising plasma technology – producing heat hotter than the sun – and has deployed security screening devices at local metro stations, showcasing China’s rapid translation of innovation into real-world applications.

Global ripples and resistance

While Made in China 2025 has accelerated China’s technological rise, it has also sparked unease abroad. The U.S. and European countries see the strategy as an attempt to dominate strategic industries, raising concerns about technology transfer, intellectual property, and global market access.

This has led to trade tensions, restrictions on Chinese tech firms, and calls for supply chain diversification. Yet, despite external challenges, China continues to make strides -- its electric vehicle industry, renewable energy technologies, and 5G infrastructure already showcase the results of sustained investment and policy direction.

Progress and achievements

China’s drive for innovation is already reshaping global industries. In electric vehicles (EVs), China has become the world’s largest EV market and exporter. Domestic champions like BYD, NIO, and XPeng are not only competing with Tesla but also setting global benchmarks in affordability, range, and battery innovation. BYD recently surpassed Tesla in quarterly EV sales, while Chinese EVs are expanding rapidly into Europe, Southeast Asia, and Latin America.

In renewable energy, China dominates solar panel and wind turbine production, fueling the global transition to green power.It produces more than 80% of the world’s solar panels and leads in wind turbine manufacturing. The country is investing heavily in energy storage and ultra-high-voltage transmission lines, allowing renewable power to reach distant urban centers. This dominance positions China as a key supplier in the global push toward carbon neutrality.

In telecommunications, Huawei and ZTE remain central to worldwide 5G expansion, even in the face of geopolitical pushback.Despite facing sanctions and political headwinds, Huawei and ZTE remain central to global 5G infrastructure. Huawei alone has filed thousands of 5G-related patents, cementing China’s place as a technology leader. Beyond 5G, China is pushing into 6G research, satellite internet, and quantum communications, aiming to set the standards for the next wave of global connectivity.

In high-speed rail, China has built the world’s most extensive network and is exporting its technology overseas. Together, these breakthroughs show that China has moved far beyond its image as a low-cost manufacturer—emerging instead as a global trendsetter in advanced technology and industry.

The roadblocks ahead

Even as China scores major wins under its Made in China 2025 blueprint, it faces significant obstacles. Its reliance on foreign technology for advanced semiconductors remains a critical vulnerability, with U.S. export restrictions slowing progress in key sectors such as artificial intelligence, telecommunications, and high-end manufacturing. Generous state subsidies, while fueling rapid growth, have also created inefficiencies and overcapacity, particularly in electric vehicles and battery production, raising concerns about long-term profitability and sustainability. At the same time, Chinese firms, despite their dominance in manufacturing scale, continue to struggle with building globally trusted and premium brands, leaving them at a disadvantage against established Western and Japanese competitors. Adding to these challenges, Western nations are increasingly pursuing “de-risking” strategies to diversify supply chains and reduce dependence on China, while trade restrictions and geopolitical tensions further complicate Beijing’s ambitions to secure global leadership in emerging industries.

A future defined by innovation

As China moves into the next decade of its industrial transformation, one thing is certain: innovation will remain the cornerstone. The country is already pivoting toward Made in China 2035, signaling an even longer-term vision where breakthroughs in quantum computing, biotechnology, green energy, and space exploration could redefine its role on the global stage.

The message is clear: the era of “cheap, low-quality” Made in China is fading. What is emerging is a new brand identity -- China as a hub of advanced, innovative, and globally competitive industries.

Whether admired as an extraordinary industrial leap or feared as a geopolitical challenge, Made in China 2025 has already reshaped the global economic conversation. It is not just a policy - it is a declaration that the future of manufacturing and technology will be written with innovation at its core, and China intends to hold the pen.
SumanSahais a journalist with the Daily Sun. Email: [email protected]