Rebuilding China's Manufacturing Edge and Strategic Path in the AI Era

In the AI era, discussions about technology’s role often fall into extremes—either “technological omnipotence” or “technological pessimism”—while the fundamental importance of manufacturing itself is relatively overlooked. Although “AI + Manufacturing” currently enjoys strong policy support and capital enthusiasm, the critical question remains: has the core competitive advantage of Chinese manufacturing undergone a fundamental shift? Over the past two decades, China’s manufacturing sector has built unique competitiveness through economies of scale, comprehensive supply chains, cost efficiency, and engineering capabilities. This foundational strength has not become obsolete; rather, its applicable contexts are evolving. In the AI era, the focal points of manufacturing competition have shifted toward the accumulation of manufacturing experience, the translation of lab-based innovations into real-world applications, and the construction of advanced collaborative systems. China’s greatest potential lies in its ongoing reconfiguration of systemic manufacturing capabilities. As the bedrock of industrial development, the manufacturing base not only produces goods but also generates application scenarios and practical experience. For instance, mature manufacturing segments like consumer electronics assembly—though not at the technological frontier—are vital components of this manufacturing foundation, supporting iterative development of industrial software and providing a launchpad for emerging industries. Certain experience-intensive foundational manufacturing capabilities still require strengthening; otherwise, they will constrain the overall ceiling of China’s industrial chain. Speed in engineering implementation is one of China’s key manufacturing advantages, yet gaps persist in pilot-scale validation and engineering scale-up. The current incentive system—which prioritizes academic publications over practical engineering outcomes—needs recalibration. The core value of manufacturing intelligence lies in reshaping manufacturing advantages and driving industrial value migration. However, its implementation remains uneven, and global expansion faces multiple barriers—contingent on maintaining a robust domestic manufacturing base. Different sectors require tailored strategies: advanced packaging must seize the critical window to translate technology into industry standards; all-solid-state batteries need enhanced capability to move from prototypes to mass production; humanoid robots rely on leveraging existing manufacturing infrastructure; and consumer electronics manufacturing services can continue capturing value by preserving established capabilities. Looking ahead, China’s manufacturing sector must build consensus around three priorities: first, directing policy support and investment resources toward concrete manufacturing processes; second, systematically enhancing pilot validation and engineering scale-up capabilities; and third, establishing a baseline requirement to preserve the rootedness of the domestic manufacturing base. The next strategic goal is to become a global leader in exporting advanced manufacturing technologies and capabilities—by effectively integrating existing resources and securing a proactive position in global competition.