Fortifying the backbone of manufacturing through innovation

BEIJING -- From an era when even basic necessities like matches and soap had to be imported, China has transformed into the world's largest manufacturing powerhouse with the most comprehensive range of industrial sectors.

"China has always adhered to the path of developing the real economy... which has proven to be the right path," President Xi Jinping said during his inspection tour of the Luoyang Bearing Group Co Ltd in Henan province this week.

As the backbone of China's manufacturing prowess, traditional manufacturing is critical for stabilizing employment and fiscal revenue and maintaining international competitiveness.

Today, the value-added output of traditional industries, including steel, non-ferrous metals, machinery and textiles, accounts for nearly 80 percent of the manufacturing sector's total.

Building a stronger manufacturing sector has been high on the agenda of Xi, who is also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission.

By underscoring the significance of technology and innovation, he has spearheaded sweeping efforts to transform and upgrade the country's manufacturing sector, a key step in advancing the country's high-quality development and modernization amid global economic uncertainties.

During his domestic inspections in recent years, Xi has always visited enterprises and factories. He inspects production lines, engages in conversations with frontline workers, and gains a firsthand understanding of the products and the progress made in transformation and upgrading.

For instance, in January 2025, while inspecting a cold rolling mill of Bensteel Group in Liaoning province, Xi visited the enterprise's control center to check the operation of the centralized control intelligent system. He said that the manufacturing sector should continue to pursue higher standards, smarter operations and more eco-friendly development, and make more technology-intensive products with higher added value.

Since introducing the concept of new quality productive forces in 2023, Xi has consistently highlighted that traditional industries are the cornerstone for developing these advanced productive capabilities.

During a deliberation at the annual national legislative session last year, Xi noted that developing new quality productive forces "does not mean neglecting or abandoning traditional industries."

This point was further reinforced in May last year when he visited Shandong province and commended Rizhao Port for its successful transformation from a traditional port into a modern one. "The port has not only achieved top-tier cargo throughput nationwide but has also gained valuable insights into fostering new quality productive forces through the transformation and upgrading of traditional industries," he said.

Guided by his vision, China has made great strides in speeding up the transformation and upgrading of traditional industries particularly through digital empowerment and green transitions.

Technologies like industrial internet, 5G, and AI have been extensively applied in traditional industries. In 2024, investment in technological upgrades in the manufacturing sector increased by 8 percent year-on-year, outpacing the overall investment growth.

In key energy-consuming industries such as chemicals, building materials, steel, and non-ferrous metals, energy consumption per unit of value-added output fell in 2024 from the previous year.

To realize Chinese modernization, consolidating the country's industrial strengths has become increasingly vital. Traditional industries are now being urged to move up the value chain, sustaining scale while improving quality.

A prime example is the Luoyang Bearing Group Co Ltd, which has leveraged innovation to achieve breakthroughs in key technologies. High-end bearings now account for 70 percent of its total output value.

China must continue to strengthen the manufacturing sector, adhere to the principles of building self-reliance and strength... and cultivate a robust pool of high-quality talent to advance Chinese modernization, Xi noted during his visit to the company.

"Innovation is the lifeblood of manufacturing, which means mastering core technologies in key fields," Xi said.