Made in China, 10 years later: From factory floor to tech powerhouse

Editor’s note: This article is the second installment in the China Technology 2026 series by Ashley Dudarenok and Jing Daily. Read the first on China’s top 10 innovators here. In 2015, Beijing launched “Made in China 2025” (MIC2025) to transform the country from the world’s factory into a global manufacturing powerhouse, targeting 10 strategic high-tech sectors. Despite international criticism and the slogan fading from public use after 2018, the strategy continued under new frameworks, including “New Quality Productive Forces,” introduced by Xi Jinping in 2023 to reinforce technological self-reliance and industrial upgrading. A decade later, the results are clear. China now accounts for nearly 30% of global manufacturing value-added, ranking first in the world for 15 consecutive years. R&D spending reached 3.93 trillion RMB ($570 billion) in 2025, or 2.8% of GDP, and the country holds 5.3 million invention patents, about 70% in strategic emerging industries. As China unveils its 15th Five-Year Plan (2026–2030), the strategy is entering a new phase, making it critical for global brands to understand where China leads, where it is catching up, and where it is heading next. The MIC2025 scorecard: A decade of disruption China’s industrial upgrade is becoming increasingly visible across major sectors. The total added value of large industrial enterprises is expected to grow 5.9% year-on-year in 2025, as Beijing continues investing in strategic industries including integrated circuits, aerospace, biomedicine, and AI, alongside emerging technologies such as quantum computing and brain-computer interfaces. Where China now leads the world China is rapidly shifting from a follower to a leader across several strategic sectors, including quantum computing, infrastructure, electric vehicles, and the emerging low-altitude economy. In quantum computing, China has transitioned from lab breakthroughs to a world-leading commercial ecosystem. By 2026, it had built some of the world’s largest quantum communication networks for finance and government, while rolling out quantum-encrypted cloud services and exporting early generations of commercial hardware to global markets. Infrastructure is also becoming more digital. China’s 48,000 km high-speed rail network, the world’s largest by early 2026, is increasingly integrated with digital twins, 5G Advanced, and the BeiDou Navigation System, enabling automated ports, smart highways, and AI-driven logistics. The shift is even clearer in electric vehicles. In 2025, China sold over 16 million new energy vehicles (NEVs), accounting for 73.7% of global NEV sales in November. That same year, BYD and CATL together accounted for 55.6% of global EV battery installations, influencing technology adoption and pricing standards worldwide. Another leading area is the low-altitude economy, which includes drones and electric vertical takeoff and landing (eVTOL) aircraft. The sector was projected to reach 1.5 trillion RMB ($210 billion) by 2025, with China recently testing a 10-passenger eVTOL, signaling its ambitions to lead in advanced urban air mobility. What it means for brands: Competition with China today is no longer about cost but about technology, scale, and ecosystem integration. As global industries increasingly rely on Chinese solar panels, batteries, and ships, the key question for foreign brands is no longer how to compete, but how to partner with local firms, integrate into supply chains, or find niches where they still add unique value. Localizing R&D and production is increasingly essential to remain relevant. Want to see this firsthand? Reading about these trends is one thing. Witnessing them in the wild is another. This April, I’m leading the China Inspiration Tech Tour, a six-day deep dive into the heart of Chinese innovation in Shanghai and Hangzhou. For the first time, we’re opening this experience — usually reserved for our Fortune 500 clients — to a small group of individual executives. You’ll go behind the curtain at companies you've only read about, explore AI-powered factories and live-streaming studios up close, and build real relationships with a curated group of founders and VPs. Dates: April 19–24, 2026 Cost: $12,888, all-inclusive Group size: Capped at 20 participants I’ll be there personally, guiding the entire program. This is the China immersion I’ve always wanted to offer. Reserve your spot at chozan.co/china-inspiration-tech-tour. The next frontier: Where China is catching up fast In sectors such as robotics, semiconductors, and aerospace, China is closing the leadership gap at a pace global businesses cannot ignore. Humanoid robots are a striking example. While attention has focused on Optimus from Tesla, Chinese firms have captured early deployment. In 2025, Unitree Robotics shipped over 5,500 humanoid robots, while U.S. firms such as Figure AI, Tesla, and Agility Robotics shipped between 150 and 500 units each. China’s 15th Five-Year Plan (2026–2030) also lists humanoid robotics as a strategic priority. Progress is also significant in semiconductors despite export controls. Huawei and Semiconductor Manufacturing International Corporation are advancing 7 nm and 5 nm chips and plan to scale production to 100,000 wafers per month within two years. China still depends on foreign technology below 5 nm but is rapidly building capacity in mature nodes. Momentum is also building in aerospace. The C919 from the Commercial Aircraft Corporation of China entered commercial service in 2023 and is building a strong domestic order book, though about 40% of components remain imported, including engines supplied by GE Aerospace and Safran. What it means for brands: China’s rapid progress in robotics suggests factory automation could shift quickly this decade, with Chinese firms shaping early standards. For global manufacturers, the choice is increasingly whether to source Chinese technology, partner with Chinese firms, or build competing capabilities, while the semiconductor technology gap is narrowing faster than many expected. The ‘Little Giants’ and the innovation ecosystem One of the less discussed but highly significant outcomes of MIC2025 is the rise of China’s specialized SMEs known as “Little Giants” (专精特新). These firms focus on deep expertise in niche components and materials critical to strategic industries. By early 2026, China had over 17,600 Little Giant companies, many of which operate in strategic emerging sectors such as next‑generation IT, high‑end equipment, new materials, and biopharma. This matters greatly for global supply chains. China’s manufacturing strength is no longer driven only by large state-owned firms; it now rests on a dense ecosystem of highly specialized suppliers that are difficult to replicate elsewhere, enabling industries to source entire supply chains domestically. What it means for brands: China’s supply chain advantage runs deeper than many expect. Replicating this ecosystem elsewhere would take decades and massive investment. For most global brands, the more pragmatic strategy is to engage with it strategically by identifying world-class Chinese suppliers and building long-term partnerships. What comes next: The 15th Five-Year Plan and beyond As China’s National People’s Congress convenes, the 15th Five-Year Plan (2026–2030) is being unveiled with ambitious targets: R&D spending to grow at least 7% annually, the digital economy’s core industries to reach 12.5% of GDP, and 109 major projects across six strategic sectors. Priorities include humanoid robots, rare earths, AI, and advanced manufacturing, extending the MIC2025 agenda. The next phase is framed by the concept of “New Quality Productive Forces,” shifting from catching up with the West to leapfrogging into future industries such as AI-driven manufacturing, quantum computing, 6G, brain-computer interfaces, and next-generation biotechnology. China already accounts for over 40% of global 6G patent filings, and its industrial AI capabilities are rapidly approaching the global frontier. The bottom line Ten years after its launch, the legacy of Made in China 2025 is clear. It has fundamentally reordered the global manufacturing landscape, moving China from a position of acknowledged weakness to one of genuine strength in most of the sectors it targeted. The strategy has created reverse dependencies — areas where the world relies on Chinese technology — and built an innovation ecosystem that will continue to compound in the years ahead. The companies and innovators driving this transformation are the ones you need to understand. Our “Top 25 Chinese Innovators to Watch in 2026” report profiles the leaders shaping China's next decade of technological development. Download it at chozan.co. And to see this transformation firsthand, join me on the China Inspiration Tech Tour, April 19–24, 2026, in Shanghai and Hangzhou. All-inclusive price: $12,888. Limited to 20 participants. Reserve your spot at chozan.co/china-inspiration-tech-tour.

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Made in China, 10 years later: From factory floor to tech powerhouse