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China’s Manufacturing Leap: AI and Innovation Drive Industrial Upgrading

Compiled from a report by China Daily on March 13.

China’s manufacturing sector is entering a new era of transformation, moving from traditional “Made in China” production toward intelligent, high-tech manufacturing that competes at the global frontier.

Industry leaders say innovation is now the defining factor for success, as companies push to develop core technologies, accelerate industrial upgrading, and climb the global value chain.

From Follower to Global Leader

Jia Shaoqian, chairman of major home appliances manufacturer Hisense Group and deputy to China’s National People’s Congress, highlighted the historic evolution of China’s manufacturing.

Since I joined Hisense in 1997, I’ve witnessed the sector transition from trailing global peers to competing alongside them — and in some areas, even taking the lead,” Jia said during China’s annual two sessions.

He emphasized that everything ultimately comes down to innovation.

Breakthroughs in Display Technology

Hisense’s recent technological achievements exemplify this shift. Last year, the company launched the world’s first RGB light and color co-control Mini LED chip, capable of directly driving red, green, and blue Mini LED backlights.

The innovation resolved key technical bottlenecks, including efficiency, lifespan, color deviation, and color purity — challenges that had limited high-end LED performance for years.

Global competitors quickly followed: Sony, Toshiba, and Samsung announced plans to launch similar RGB Mini/Micro LED TVs in 2026, illustrating how Chinese firms are now shaping global innovation trends.

AI-Powered Smart Manufacturing

The transformation is not limited to R&D breakthroughs. At Hisense’s lighthouse factory for central air conditioners in Qingdao, AI and automation are reshaping complex production processes.

A striking example is the pipe-insertion process, previously performed manually, requiring workers to insert dozens of copper tubes into hundreds of aluminum foil holes with extreme precision.

Today, automated machines equipped with 17 high-precision cameras, 11 robots, and AI algorithms functioning as a real-time “brain” can complete the task efficiently.

The results are impressive:

  • 37% faster product development

  • 49% higher production efficiency

  • 35% reduction in manufacturing costs

  • 13% lower energy consumption per unit

This is the boundless potential of moving from traditional manufacturing to intelligent manufacturing in China,” Jia said.

AI as a Strategic Opportunity

Leaders stress that the integration of AI represents a once-in-a-lifetime opportunity for China’s manufacturing sector. From automated production lines to predictive maintenance and supply chain optimization, AI is accelerating both efficiency and quality, enabling firms to compete on the global stage.

Looking ahead, companies like Hisense aim to strengthen their role as drivers of technological innovation, ensuring that research results are quickly commercialized and translated into marketable products.

Implications for Global Industry

China’s manufacturing leap demonstrates a broader trend: the convergence of scale, technology, and intelligent processes is allowing domestic companies to move up the value chain while shaping global technology standards.

For international observers, this signals that China is no longer simply a manufacturing base for low-cost goods. Instead, it is emerging as a global hub for high-tech, AI-powered industrial innovation, particularly in sectors such as consumer electronics, appliances, and smart home technologies.

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