On November 24th, during the "2017 Annual Conference of China’s Intellectual Industry," Xin Renzhou, an inspector from the Industrial Policy Department of the Ministry of Industry and Information Technology, emphasized that intelligent manufacturing represents a sophisticated integration of advanced information technology with modern manufacturing techniques. This new approach transforms the entire production, management, and after-sales service process into a more efficient and innovative model.
Zhang Wenkui, director of the SME Research Institute at the State Council’s Development Research Center, highlighted that the core of the new manufacturing industry lies in fundamental changes to production methods. He argued that future manufacturing will not simply be about the internet or digitalization, but rather a comprehensive transformation across creative design, production, sales, and consumption. This process requires active participation from both producers and consumers, leading to a reengineering of traditional workflows.
Zhang warned that these shifts in production models could have significant long-term impacts on the manufacturing sector. He cautioned Chinese companies to deeply understand the evolving trends and characteristics of this new industrial landscape. “This change might become a major trend, and those who fail to adapt may struggle to survive,†he said.
At the same time, Zhang expressed concern over the current trend of declining manufacturing importance in China. While many local governments are focusing on the growth of the tertiary sector, he pointed out that the proportion of manufacturing in China’s GDP has dropped from 33% in 2010 to 30%, while the financial sector has grown from 5% to 8.5%. “This shift is moving away from reality and poses serious risks to the manufacturing industry,†he warned.
In contrast, developed countries like the U.S., Japan, and Germany are actively working to bring manufacturing back, especially high-end sectors. According to a report by the China Federation of Logistics and Purchasing, the U.S. manufacturing PMI for October reached 58.9%, surpassing China’s 51.6%. The European manufacturing PMI also stood at 57.2%, higher than China’s.
Zhou Lingkun, a partner at Deloitte, noted that the U.S. is expected to overtake China as the most competitive manufacturing nation within the next five years. In the long term, Japan’s intelligence-building capabilities may even surpass both China and the U.S., with India potentially catching up as well.
Zhang Wenkui stressed that although China leads in some areas like high-speed rail and nuclear power, its overall manufacturing value remains low compared to developed nations. With the loss of traditional manufacturing advantages, China risks falling behind if it doesn’t innovate and adapt.
Fortunately, the government has begun addressing these issues. The 19th Party Congress emphasized the need to accelerate the development of advanced manufacturing and integrate technologies like big data and AI with the real economy.
Xin Renzhou pointed out that while China has made progress in IT, hardware, and advanced manufacturing, there are still gaps in key technologies. For example, critical components like robot speed reducers are still controlled by foreign firms. “This technological dependency is a vulnerability that must be addressed through innovation,†he said.
He urged companies to focus on practical applications and align smart manufacturing efforts with national industrial restructuring. “Don’t follow trends blindly; instead, tailor solutions to your specific industry needs,†he advised.
Zhang Wenkui believes that while national policies emphasize industrial strategies, they may not fully address the evolving nature of production methods. He argues that the new manufacturing industry brings unique features that go beyond traditional industrialization and the integration of informatization.
Using steel as an example, he explained that large-scale automation works well for mass production, but fails when it comes to specialized products like ballpoint pen tips. These require customization, connectivity, and intelligence—challenges that traditional systems cannot easily meet.
Zhang concluded that adapting to this new production model will be crucial for the future of Chinese manufacturing. Companies must embrace technological upgrades and process innovations to stay competitive globally and avoid being left behind in the manufacturing race.
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