New Milestone Achievements inChina’s Industrial Transformation andUpgrading

Research Group of the Institute of Industrial Economics, Chinese Academy of Social Sciences

(IIE-CASS), Beijing, China*

Abstract: In recent years, China has steadily advanced high-quality economicdevelopment, moving from “made in China” to “invented in China”, and scoring newmilestones in industrial transformation and upgrading. In terms of resource endowmentstructure, China has succeeded in bolstering innovation investment and capabilities,as well as converting its demographic dividend into a talent dividend, propelling it intothe ranks of leading nations in terms of new infrastructure capacity. China has madegroundbreaking progress in 5G, deep ocean, aerospace, transportation, energy, and othercritical sectors. China has achieved a rapid expansion in the manufacturing of emerginghigh-end products, becoming the world’s largest robotics market. In terms of industrialstructural transformation, China’s economy has moved into a service-based developmentstage, with producer services accounting for a rising share. Technology-intensive andknowledge-intensive services have thrived, high-tech sectors have served as vital economicgrowth drivers, and integration of the primary, secondary, and tertiary industries, aswell as the digital and real economies, has emerged as a prominent trend. The digitaleconomy is growing fast in terms of scale and penetration. “Digital factor×” and “AI+”applications are accelerating industrial upgrading, spawning new business models likesmart manufacturing, e-commerce, and online sales. In terms of the green economy, Chinahas initially created a green modern industrial system, transforming itself into a globalpowerhouse of new energy goods, with renewables accounting for the vast majority of itsnewly installed generation capacity. In terms of industrial internationalization, high-techproducts have made up the bulk of China’s exports, China has emerged as a key source ofoutward direct investment, and the focus of its industrial internationalization has shiftedfrom “going global” to “integrating locally”.

Keywords: Industrial transformation and upgrading, milestones, critical frontier

JEL Classification Code: O10

DOI: 10.19602/j.chinaeconomist.2024.03.01