China has achieved a historic milestone by entering the top tier of global manufacturing powers, according to a comprehensive report released on December 31, 2025. The nation’s manufacturing sector has surpassed Japan for the first time, positioning itself alongside Germany and the United States in the elite group of industrial leaders.
The annual manufacturing development assessment, jointly published by the Chinese Academy of Engineering’s Centre for Strategic Studies, the China Academy of Machinery Science and Technology Group Co, and the China Industrial Control Systems Cyber Emergency Response Team, evaluates nine major economies across five critical indicators: scale development, quality and efficiency, structure optimization, innovation capacity, and sustainable development.
Qin Hanjun, Chairman of the China Academy of Machinery Science and Technology Group Co, announced at a Beijing press conference that China’s manufacturing index has consistently exceeded 120 points for four consecutive years, firmly establishing the country within the second tier of manufacturing nations. The United States maintains a commanding lead with a score of 190.89, while Germany, China, and Japan form a competitive cluster scoring between 120 and 140.
The report highlights innovation as the primary catalyst behind China’s manufacturing ascent. Research and development investment within the sector has more than doubled since 2012, rising from 0.85% to 1.82% in 2024. This sustained commitment to innovation has yielded tangible results, with China leading globally in Patent Cooperation Treaty applications for both 2023 and 2024.
China has achieved world leadership in several advanced manufacturing sectors, including information and communication equipment, advanced rail transit systems, electrical power infrastructure, and new energy vehicles. Professor You Zheng, President of Huazhong University of Science and Technology and Chinese Academy of Engineering academician, identified key global trends reshaping manufacturing, including a strategic shift from efficiency-focused to security-focused supply chains, accelerated green transformation, and intensifying technological competition.
Looking toward 2030, China anticipates maintaining world-leading positions in seven core industries while achieving breakthrough innovations in original technologies. By 2035, six additional sectors including new display equipment, robotics, and energy storage systems are projected to join China’s portfolio of globally competitive manufacturing capabilities.