How Agility and Innovation Drive the Global Success of Chinese Manufacturing

Par Qiu Chaoyi, People's Daily

# How Agility and Innovation Drive the Global Success of Chinese Manufacturing

Chinese manufacturing continues to win over consumers worldwide. According to China's Ministry of Commerce, overseas visitors spent 263.6 billion yuan ($39.28 billion) in China from January to July this year, up 27.8 percent year-on-year. The number of overseas travelers applying for departure tax refunds more than tripled over the same period.

Why has China maintained the world's largest manufacturing value-added output for 16 consecutive years? An examination of several popular products offers insight into the logic behind building a stronger, more dynamic manufacturing sector.

Yiwu, in eastern China's Zhejiang province, is known as the "world's supermarket." Though located neither on the border nor by the sea, local businesses have turned small commodities into global enterprises.

Recently, a palm-sized hat went viral overseas. It trended on social media in the morning, entered mass production in Yiwu by the afternoon, and quickly reached markets in Europe and the United States.

Earlier this year, a "crying horse" toy unexpectedly became popular. Yiwu manufacturers ramped up production within 48 hours. By mid-year, they had already stocked up on blockbuster World Cup merchandise well before the tournament kicked off.

Yiwu has moved beyond its old model of passive OEM manufacturing. It now identifies market demand with zero time lag and connects it to production with virtually no barriers.

Rather than waiting for the next trend to emerge, the region is increasingly helping drive consumer trends. This shift from reacting to the market to anticipating it shows how a flexible mindset can quickly turn emerging demand into business opportunities.

In May of this year, Chinese tech giant Huawei introduced its Tau Scaling Law, replacing geometric scaling with time scaling and successfully designing and mass-producing hundreds of chip models.

Similarly, Chinese new energy vehicle manufacturer BYD broke away from conventional cylindrical and prismatic battery designs, developing its Blade Battery to address key safety challenges through structural innovation.

Chinese motorcycle manufacturer ZXMOTO took a different route to develop a three-cylinder, water-cooled engine, making a splash on the international racing circuit.

What these examples demonstrate is not merely a shift in technological approaches, but a broader wisdom in industrial upgrading: by daring to break with convention and pursue new paths, seemingly insurmountable bottlenecks can become breakthroughs in independent innovation.

In recent years, new products have been brought to market in rapid succession, and new technologies have evolved at an accelerating pace. One important reason is that China has planned ahead, laying the groundwork and building capacity to weather changes.

Take artificial intelligence, for example. The ultimate foundation of AI is electricity. Developing large AI models requires not only cutting-edge chips and advanced algorithms, but also abundant and reliable power infrastructure. Through sustained investment, China has built the world's largest ultra-long-distance power transmission network and a renewable energy system, granting it a distinctive energy advantage in the AI race.

From 5G networks and modern logistics needed to support advanced manufacturing to the cultivation of a large pool of highly skilled engineers and technicians, China has steadily invested in key foundations. These efforts have built a comprehensive, multilayered industrial structure covering all major sectors, strengthening manufacturing resilience and enabling the sector to withstand pressure and adapt to changing conditions.

China has grown its manufacturing sector into a global powerhouse not through protectionist policies or zero-sum competition, but through openness, cooperation, and mutual benefit.

Recently, the realistic film *Once Upon a Time in the Middle East* became a hit. One line from the movie—"Don't forget to eat well"—touched the hearts of many foreign viewers. These simple words convey values that cherish peace, development, mutual benefit, and win-win cooperation, closely aligning with the underlying logic of Chinese manufacturing.

As Chinese manufacturing goes global, it brings with it an ever-growing list of opportunities.

In Africa, the China-Egypt TEDA Suez Economic and Trade Cooperation Zone has developed industries spanning new energy and home appliances, generating jobs for over 10,000 people.

In Southeast Asia, China's textile sector has forged deep integration with the industrial chains of Malaysia and other nations, forming a cooperative model where China supplies raw materials, ASEAN manufactures finished garments, and the world opens up markets.

In Latin America, multiple Chinese automakers have set up plants in Brazil, boosting local industrialization via capital investment and homegrown talent development.

All this highlights the flexibility, strong execution, and openness of Chinese manufacturing. As profound global changes accelerate and a new round of scientific and technological revolution gains momentum, Chinese manufacturing—by staying dynamic and adapting to changes—will remain vibrant and achieve even greater success.