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History

1949–1978: State-led Industrial Development

Following the establishment of the People's Republic of China in 1949, the government implemented a Soviet-style centrally planned economy, prioritizing heavy industries such as steel, coal, and machinery. [1]The First Five-Year Plan (1953–1957), with technical and financial support from the Soviet Union, led to significant industrial growth and the formation of a basic national industrial framework.[2] During this period, 156 major industrial projects were launched, including large-scale enterprises in military production, metallurgy, chemicals, machinery, and energy. [2]These efforts aimed to build a relatively complete industrial base and modern national defense system, significantly raising China’s industrial capacity and technological level to one comparable with that of advanced countries in the 1940s.[2] However, the system was characterized by high input reliance, low efficiency, and imbalanced output structures, including chronic overproduction in some sectors.[3]

Between 1958 and 1962, the Great Leap Forward aimed to accelerate industrialization through rural collectivization and mass mobilization. [4]This campaign caused severe disruptions to both agriculture and industry, and is widely associated with a major famine that resulted in tens of millions of deaths. [4]The subsequent Cultural Revolution (1966–1976) further destabilized the industrial sector, as many technical experts and administrators were purged, leading to administrative paralysis and production inefficiencies.[3]

Despite these setbacks, China had, by 1978, developed a foundational industrial base dominated by state-owned enterprises in sectors such as chemicals, metallurgy, and machinery. [3]Industrial growth during the 1957–1978 period averaged approximately 8.8 percent annually, though growth rates fluctuated considerably from year to year. [3]According to scholars, persistent inefficiencies within the command economy model contributed to the eventual launch of economic reforms at the end of the 1970s.[3]

1978–Present: Industrial Reform, Growth, and Modernization

Since the launch of economic reforms in 1978, China's industrial sector has undergone profound structural transformation. [1]The shift from a centrally planned economy to a market-oriented system led to the diversification of ownership forms, the expansion of manufacturing, and the gradual rise of China as a global industrial power. [5]

Reform and Ownership Transformation

In the early reform years, the state began loosening direct control over industrial enterprises. [1][6]The state-owned enterprise (SOE) system, which dominated China's industrial landscape in the pre-reform era, was gradually restructured. [1][6]From the mid-1980s onward, policies encouraged managerial autonomy, profit retention, and performance-based contracts. [1][6]During the 1990s, large-scale SOE reforms led to widespread privatization and the emergence of shareholding systems.[1] [6]Many small and medium-sized SOEs were closed or merged, while key large enterprises were corporatized and listed on stock markets, both domestically and abroad.[1][6]

At the same time, non-state industrial sectors expanded rapidly. [7]Township and village enterprises (TVEs) emerged as a dynamic force in rural industrialization during the 1980s and early 1990s.[7] Private enterprises were gradually legalized and expanded into manufacturing, textiles, electronics, and other light industries. [7]By the early 2000s, non-state enterprises accounted for the majority of industrial output value.[7]

Export-Oriented Manufacturing and WTO Integration

China's accession to the World Trade Organization (WTO) in 2001 further accelerated its industrial development. [8] China’s industrial base became increasingly export-oriented, with labor-intensive manufacturing—such as garments, electronics, and toys—playing a central role. [8]Foreign direct investment (FDI), particularly in coastal provinces, introduced advanced technologies and management practices.[8] Joint ventures and wholly foreign-owned enterprises flourished in sectors like automotive, consumer electronics, and telecommunications.[8]

Between 2001 and 2010, China became known as the "world’s factory," producing a growing share of global manufactured goods. By 2010, it had overtaken the United States to become the world's largest manufacturing nation by value added.[9][10]

Industrial Upgrading and Innovation

In the 2010s, Chinese policymakers prioritized shifting from low-end manufacturing to higher-value-added, innovation-driven industries.[11] The “Made in China 2025” initiative, launched in 2015, aimed to upgrade ten key industrial sectors, including robotics, aerospace, advanced rail equipment, new energy vehicles, and medical devices.[11] The goal was to enhance domestic technological capabilities and reduce dependence on imported components and equipment.[11] Research and development (R&D) spending increased significantly, with industrial firms becoming major contributors.[12] [13] As of the early 2020s, China ranked among the top global countries in manufacturing output for high-tech industries, such as solar panels, 5G equipment, and electric vehicles. [14]Government policies supported strategic emerging industries through subsidies, tax incentives, and industrial parks.[15]

State-owned enterprises continued to dominate in strategic sectors such as energy, telecommunications, and heavy industry, while the private sector and foreign-invested firms played leading roles in consumer goods, light industry, and technology manufacturing.[13][16]

Aerospace industry

This paragraph is an excerpt from Chinese space program.

China's space program dates back to 1956, when the country established the Fifth Academy of the Ministry of National Defense, the predecessor of today's China National Space Administration (CNSA). Over more than five decades of development, China has become one of the world's leading space powers. From launching its first artificial satellite to developing the BeiDou Navigation System, from its first carrier rocket to its first manned spaceflight, and from Tiangong-1 to the successful Chinese Lunar Exploration Program, China has achieved remarkable milestones that have attracted global attention.

Artificial Satellites

On April 24, 1970, China launched its first artificial satellite, Dong Fang Hong 1. On December 27, 2012, the BeiDou Navigation Satellite System, independently developed and operated by China, officially began providing regional services. By early 2013, the People's Republic of China had successfully developed and launched 140 artificial satellites of various types.

Carrier Rockets

From October 1996 to the end of 2005, the Long March series of carrier rockets achieved 46 consecutive successful launches. Significant breakthroughs were made in the development of a new generation of launch vehicles, including the YF-100—a 120-ton-thrust liquid oxygen/kerosene engine—and the YF-77, a 50-ton-thrust liquid hydrogen/liquid oxygen engine.

Human Spaceflight

On November 20, 1999, China successfully launched and recovered its first uncrewed test spacecraft, Shenzhou 1. On October 15, 2003, astronaut Yang Liwei became the first Chinese person in space aboard Shenzhou 5. From October 12 to 17, 2005, the Shenzhou 6 mission completed a five-day crewed flight with two astronauts. In 2008, during the Shenzhou 7 mission, astronaut Zhai Zhigang conducted China's first extravehicular activity (spacewalk). In 2011, China launched its first prototype space station module, Tiangong 1, which successfully docked with the subsequently launched Shenzhou 8 spacecraft.

Lunar Exploration

On December 14, 2013, Chang'e 3 successfully landed on the Moon. On November 1, 2014, the Chang'e 5-T1 mission completed a successful return to Earth from lunar orbit.

Information Technology Industry

Computer Industry

This paragraph is an excerpt from Supercomputing in China

China is home to several of the world’s leading supercomputing centers.[17] In recent years, it has made significant advancements in supercomputing, reaching a position among the global leaders in this field.[18][19]

China was the first developing country to design and build its own supercomputers. By 2011, China had 74 systems listed among the world’s top 500 supercomputers, a remarkable increase from a decade earlier when it had little international presence in the field.[20] As early as 1983, China developed its first supercomputer, the Yinhe-1, becoming the third country after the United States and Japan capable of independently designing and building supercomputers.[21]

In 2016, China’s Sunway TaihuLight supercomputer became the world’s fastest, achieving a peak performance of 93 petaflops per second. It was nearly three times faster than the next most powerful machine, Tianhe-2, and used over 10 million processor cores designed and manufactured in China. That year also marked the first time China surpassed the United States in total installed supercomputing capacity.[22] [23]China led in the number of systems on the TOP500 list, with 167 supercomputers compared to 165 from the United States.[23]

Internet

This paragraph is an excerpt from Internet in China

The Internet in the People's Republic of China has developed rapidly. By 2008, the number of Internet users in China reached 300 million, surpassing the United States to become the largest in the world. In 2011, China overtook the U.S. in terms of installed telecommunications bandwidth. By 2013, the number of users had grown to 600 million, and the Internet had become deeply integrated into daily life. E-commerce platforms such as Taobao recorded annual sales exceeding 1.1 trillion yuan. As of 2014, China accounted for 29% of global telecommunications bandwidth capacity, compared to 13% for the United States. As of 2024, 20% of internet users around the world are Chinese.

Energy industry

Electric power industry

By the end of 2024, China’s total installed power generation capacity reached 3,348.62 million kilowatts.[24] This included 1,444.45 million kilowatts of thermal power, 435.95 million kilowatts of hydropower, 60.83 million kilowatts of nuclear power, 520.68 million kilowatts of grid-connected wind power, and 886.66 million kilowatts of grid-connected solar power.[24] The continued expansion of non-fossil fuel sources, particularly wind and solar energy, reflects China’s efforts to diversify its energy mix and promote cleaner electricity generation.[25] These developments align with China’s stated goals of achieving carbon peaking by 2030 and carbon neutrality by 2060.[26]

Hydropower

China possesses the world’s largest installed hydropower capacity.[27] As of the end of 2024, the total capacity reached approximately 436 gigawatts, with major hydroelectric projects located along the Yangtze and its tributaries.[24] Prominent facilities include the Three Gorges Dam, Baihetan Dam, and Xiluodu Dam, each among the largest hydropower stations in the world.[27]

State-owned enterprises such as China Three Gorges Corporation and China Huadian Corporation lead the sector, contributing to energy security, renewable energy expansion, and peak-load balancing.[28]

Nuclear power

The People's Republic of China ranks third in the world both in total nuclear power capacity installed and electricity generated, accounting for around one tenth of global nuclear power generated.[29] As of December 31, 2024, mainland China operated a total of 57 nuclear power units, with a combined installed capacity of 59,431.7 MWe (rated capacity).[30] In 2024, nuclear power plants generated 445.175 billion kilowatt-hours of electricity, representing approximately 4.73% of mainland China's total electricity generation of 9,418.34 billion kilowatt-hours.[30]

Wind power

The People's Republic of China has developed one of the world's largest wind power industries.[31] As of the end of 2024, the country's installed wind power capacity reached approximately 521 gigawatts, marking an 18% increase from the previous year.[24] This expansion is part of China's broader efforts to diversify its energy mix and reduce carbon emissions.[32] The development of wind energy has been supported by national policies and strategic investments outlined in successive five-year plans.[32]

The People's Republic of China is also home to several of the world's leading wind turbine manufacturers.[33] In 2024, Chinese companies including Goldwind, Envision, and Mingyang Wind Power ranked among the top three globally in terms of wind turbine installations, collectively accounting for a significant share of the global market.[33] These manufacturers operate across a comprehensive industrial chain encompassing equipment design, production, and deployment.[33] In parallel, major state-owned enterprises such as China Huaneng Group and China Datang Corporation play central roles in wind farm construction and operation, contributing to the sector’s rapid growth.[33]

Wind farms are predominantly located in northern, northeastern, and northwestern regions, including Inner Mongolia, Xinjiang, and Hebei, with a growing presence of offshore wind projects along the eastern coastline.[32] The rapid growth of wind energy contributes significantly to China's transition toward a low-carbon energy system and its goals of peaking carbon emissions by 2030 and achieving carbon neutrality by 2060.[32]

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  14. ^ Bloomberg, Anjani Trivedi | (2020-07-12). "Analysis | China Is Winning the Trillion-Dollar 5G War". The Washington Post. ISSN 0190-8286. Retrieved 2025-04-18.
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  18. ^ Chik, Holly (2024-11-21). "Chinese supercomputer tops global computing efficiency list". South China Morning Post. Retrieved 2025-04-19.
  19. ^ Atkinson, Robert D. (2024-09-16). China Is Rapidly Becoming a Leading Innovator in Advanced Industries (Report).
  20. ^ Member, Dan Lyons Newsweek Is A. Trust Project (2011-11-28). "In Race for Fastest Supercomputer, China Outpaces U.S." Newsweek. Retrieved 2025-04-29.
  21. ^ Hongwei, 司宏伟si; Lisheng, 冯立昇feng (2022-01-24). "The Development and Innovation of the First Supercomputer YH-1 in China: From the Perspective of Technology History". Chinese Annals of History of Science and Technology. 5 (2): 161–186. doi:10.3724/SP.J.1461.2021.02161. ISSN 2096-4226.
  22. ^ Service, Robert F. (20 June 2016). "China overtakes U.S. supercomputing lead". American Association for the Advancement of Science (AAAS). Science. doi:10.1126/science.aaf5791. Retrieved 11 April 2025.
  23. ^ a b Dongarra, Jack (20 June 2016). "China builds world's most powerful computer". BBC. Retrieved 11 April 2025.
  24. ^ a b c d "STATISTICAL COMMUNIQUÉ OF THE PEOPLE'S REPUBLIC OF CHINA ON THE 2024 NATIONAL ECONOMIC AND SOCIAL DEVELOPMENT". www.stats.gov.cn. National Bureau of Statistics of China. Retrieved 2025-04-19.
  25. ^ "【ACTION PLAN FOR CARBON DIOXIDE PEAKING BEFORE 2030】". en.ndrc.gov.cn. National Development and Reform Commission(NDRC)People's Republic of China. 27 October 2021. Archived from the original on 2025-03-02. Retrieved 2025-04-19.
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  27. ^ a b Ling, Xiao,; Jing, Wang,; Binglin, Wang,; He, Jiang, (January 2023). "China's Hydropower Resources and Development". Sustainability. 15 (5). doi:10.3390/su15053940. ISSN 2071-1050.{{cite journal}}: CS1 maint: extra punctuation (link) CS1 maint: multiple names: authors list (link) CS1 maint: unflagged free DOI (link)
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