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Industry of China

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A 50 MW molten-salt power tower in Hami, Xinjiang, China

The industrial sector comprised 38.3% of the gross domestic product (GDP) of China in 2023.[1] China is the world's leading manufacturer of chemical fertilizers, cement and steel. Prior to 1978, most output was produced by state-owned enterprises. As a result of the economic reforms that followed, there was a significant increase in production by enterprises sponsored by local governments, especially townships and villages, and, increasingly, by private entrepreneurs and foreign investors, but by 1990 the state sector accounted for about 70 percent of output. By 2002 the share in gross industrial output by state-owned and state-holding industries had decreased with the state-run enterprises themselves accounting for 46 percent of China's industrial output. In November, 2012 the State Council mandated a "social risk assessment" for all major industrial projects. This requirement followed mass public protests in some locations for planned projects or expansions.[2]

History

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Main articles: Technological and industrial history of China and Industrialization of China

China ranks first worldwide in industrial output. Major industries include mining and ore processing; iron and steel; aluminium; coal; machinery; armaments; textiles and apparel; petroleum; cement; chemical; fertilizers; food processing; automobiles and other transportation equipment including rail cars and locomotives, ships, and aircraft; consumer products including footwear, toys, and electronics; telecommunications and information technology. China has become a preferred destination for the relocation of global manufacturing facilities. Its strength as an export platform has contributed to incomes and employment in China. The state-owned sector still accounts for about 40% of GDP. In recent years, authorities have been giving greater attention to the management of state assets—both in the financial market as well as among state-owned-enterprises—and progress has been noteworthy.[citation needed]

Since the founding of the People's Republic, industrial development has been given considerable attention. Article 35 of the 1949 Common Program adopted by the Chinese People's Political Consultative Conference emphasized the development of heavy industry, such as mining, iron and steel, power, machinery, electrical industry, and the chemical industry "in order to build a foundation for the industrialization of the nation."[3]: 80–81 

During the Third Five-Year Plan period, the Chinese government embarked on the Third Front campaign to develop industrial and military facilities in the country's interior in preparation for defending against the risk of invasion by the Soviet Union or the United States.[4]: 41–44  Through its distribution of infrastructure, industry, and human capital around the country, the Third Front created favorable conditions for subsequent market development and private enterprise.[4]: 177 

Among the various industrial branches the machine-building and metallurgical industries have received the highest priority. These two areas now account for about 20–30 percent of the total gross value of industrial output. In these, as in most other areas of industry, however, innovation has generally suffered at the hands of a system that has rewarded increases in gross output rather than improvements in variety, sophistication and quality. China, therefore, still imports significant quantities of specialized steels. Overall industrial output has grown at an average rate of more than 10 percent per year, having surpassed all other sectors in economic growth and degree of modernization. Industrial output growth 1978–2006 Some heavy industries and products deemed to be of national strategic importance remain state-owned, but an increasing proportion of lighter and consumer-oriented manufacturing firms are privately held or are private-state joint ventures.[citation needed]

Following its 2001 entry into the World Trade Organization, China quickly developed a reputation as the "world's factory" through its manufacturing exports.[5]: 256  The complexity of its exports increased over time, and as of 2019 it accounts for approximately 25% of all high tech goods produced globally.[5]: 256 

Beginning in 2010 and continuing through at least 2023, China has produced more industrial goods per year than any other country.[6]: 1  It is also the world's largest user of industrial robots.[5]: 264 

Since 2010, China has had the world's largest construction market.[7]: 112 

Machinery manufacturing

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China's machinery manufacturing industry can provide complete sets of large advanced equipment, including large gas turbines, large pump storage groups, and nuclear power sets, ultra-high voltage direct-current transmission and transformer equipment, complete sets of large metallurgical, fertilizer and petro-chemical equipment, urban light rail transport equipment, and new papermaking and textile machinery. Machinery and transportation equipment have been the mainstay products of Chinese exports, as China's leading export sector for successive 11 years from 1996 to 2006. In 2006, the export value of machinery and transportation equipment reached 425 billion US dollars, 28.3 percent more than 2005.[8]

Energy industry

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The world's largest hydropower plant, the Three Gorges Dam, Yangtze River, China
This paragraph is an excerpt from Energy policy of China.[edit]
China is both the world's largest energy consumer and the largest industrial country, and ensuring adequate energy supply to sustain economic growth has been a core concern of the Chinese Government since the founding of the People's Republic of China in 1949.[9] Since the country's industrialization in the 1960s, China is currently the world's largest emitter of greenhouse gases, and coal in China is a major cause of global warming.[10] China is also the world's largest renewable energy producer (see this article), and the largest producer of hydroelectricity, solar power and wind power in the world. The energy policy of China is connected to its industrial policy, where the goals of China's industrial production dictate its energy demand managements.[11]   

Automotive

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Chang'an avenue in Beijing
This paragraph is an excerpt from Automotive industry in China.[edit]

The automotive industry in mainland China has been the largest in the world measured by automobile unit production since 2008. As of 2024, mainland China is also the world's largest automobile market both in terms of sales and ownership.

The Chinese automotive industry has seen significant developments and transformations over the years. While the period from 1949 to 1980 witnessed slow progress in the industry due to restricted competition and political instability during the Cultural Revolution, the landscape started to shift during the Chinese economic reform period, especially after the government's seventh five-year plan prioritized the domestic automobile manufacturing sector.

Foreign investment and joint ventures played a crucial role in attracting foreign technology and capital into China. American Motors Corporation (AMC) and Volkswagen were among the early entrants, signing long-term contracts to produce vehicles in China. This led to the gradual localization of automotive components, and the strengthening of key local players such as SAIC, FAW, Dongfeng, and Changan, collectively known as the "Big Four".

The entry of China into the World Trade Organization (WTO) in 2001 further accelerated the growth of the automotive industry. Tariff reductions and increased competition led to a surge in car sales, with China becoming the largest auto producer globally in 2008.[12][13] Strategic initiatives and industrial policy such as Made in China 2025 specifically prioritized electric vehicle manufacturing.

In the 2020s, the automotive industry in mainland China has experienced a rise in market dominance by domestic manufacturers, with a growing focus on areas such as electric vehicle technology and advanced assisted driving systems. The domestic market size, technology, and supply chains have also led foreign carmakers to seek further partnerships with Chinese manufacturers. In 2023, China overtook Japan and became the world largest car exporter.[14] However, the industry also faced heightened scrutiny, increased tariffs and other restrictions from other countries and trade blocs, especially in the area of electric vehicles due to allegations of significant state subsidies and Chinese industrial overcapacity.[15][16]

Steel

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This paragraph is an excerpt from Steel industry in China.[edit]
China's steel industry, initially small and hindered by war, expanded rapidly following market reforms in 1978, eventually becoming the world's largest producer. Despite this growth, the industry faced challenges with high debt, market volatility, and environmental pressures. Rising exports from 2023-2024 led to global oversupply, price drops, and tariffs, prompting China to halt new steel mill approvals and encourage overseas investments. China's central government has also worked to phase out unprofitable "zombie" companies while pushing for stricter environmental controls on steel production.

Mining industry of China

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This section is an excerpt from Mining industry of China.[edit]

China's mineral resources are diverse and rich. As of 2022, more than 200 types of minerals are actively explored or mined in China. These resources are widely but not evenly distributed throughout the country. Taken as a whole, China's economy and exports do not rely on the mining industry, but the industry is critical to various subnational Chinese governments.

Mining is extensively regulated in China and involves numerous regulatory bodies. The Chinese state owns all mineral rights, regardless of the ownership of the land on which the minerals are located. Mining rights can be obtained upon government approval, and payment of mining and prospecting fees.

During the Mao Zedong era, mineral exploration and mining was limited to state-owned enterprises and collectively-owned enterprises and private exploration of mineral resources was largely prohibited. The industry was opened to private enterprises during the Chinese economic reform in the 1980s and became increasingly marketized in the 1990s. In the mid-2000s, the Chinese government sought to consolidate the industry due to concerns about underutilization of resources, workplace safety, and environmental harm. During that period, state-owned enterprises purchased smaller privately-owned mines. China's mining industry grew substantially and the period from the early 2000s to 2012 is often referred to as a "golden decade" in the mining industry.

Petroleum industry of China

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This section is an excerpt from Petroleum industry in China.[edit]
Chinese oil production 1960–2015
The impact of the petroleum industry has been increasing globally as the People's Republic of China ranks seventh for oil production and second in crude oil consumption in the world.[17][18] China became the world's largest oil importer in 2013.[18]

See also

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References

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  1. ^ "National Data". National Bureau of Statistics of China. March 1, 2022. Archived from the original on August 11, 2021. Retrieved March 23, 2022.
  2. ^ Keith Bradsher (November 12, 2012). "'Social Risk' Test Ordered by China for huge Projects". The New York Times. Retrieved November 13, 2012.
  3. ^ Harrell, Stevan (2023). An Ecological History of Modern China. Seattle: University of Washington Press. ISBN 9780295751719.
  4. ^ a b Marquis, Christopher; Qiao, Kunyuan (2022). Mao and Markets: The Communist Roots of Chinese Enterprise. New Haven: Yale University Press. doi:10.2307/j.ctv3006z6k. ISBN 978-0-300-26883-6. JSTOR j.ctv3006z6k. OCLC 1348572572. S2CID 253067190.
  5. ^ a b c Lan, Xiaohuan (2024). How China Works: An Introduction to China's State-led Economic Development. Translated by Topp, Gary. Palgrave MacMillan. doi:10.1007/978-981-97-0080-6. ISBN 978-981-97-0079-0.
  6. ^ Garlick, Jeremy (2024). Advantage China: Agent of Change in an Era of Global Disruption. Bloomsbury Academic. ISBN 978-1-350-25231-8.
  7. ^ Curtis, Simon; Klaus, Ian (2024). The Belt and Road City: Geopolitics, Urbanization, and China's Search for a New International Order. New Haven and London: Yale University Press. doi:10.2307/jj.11589102. ISBN 9780300266900. JSTOR jj.11589102.
  8. ^ China Facts and Figures 2007: Machinery Manufacturing and Automotive Industries.
  9. ^ Andrews-Speed, Philip (November 2014). "China's Energy Policymaking Processes and Their Consequences". The National Bureau of Asian Research Energy Security Report. Retrieved December 5, 2014.
  10. ^ McGrath, Matt (November 20, 2019). "China coal surge threatens Paris climate targets". Retrieved December 9, 2019.
  11. ^ Rosen, Daniel; Houser, Trevor (May 2007). "China Energy A Guide for the Perplexed" (PDF). piie.com. Retrieved April 25, 2020.
  12. ^ Marr, Kendra (May 18, 2009). "China emerges as world's auto epicenter". NBC News. Archived from the original on May 16, 2024. Retrieved May 16, 2024.
  13. ^ "Motoring ahead". The Economist. October 23, 2009. ISSN 0013-0613. Archived from the original on May 26, 2024. Retrieved May 16, 2024.
  14. ^ Hoskins, Peter (May 18, 2023). "China overtakes Japan as world's top car exporter". BBC News. Archived from the original on November 14, 2023. Retrieved August 3, 2023.
  15. ^ "China's EV overcapacity may set it on a political collision course with the US". South China Morning Post. May 14, 2024. Archived from the original on May 22, 2024. Retrieved May 22, 2024.
  16. ^ "EU companies warn China on EV overcapacity". Financial Times. Archived from the original on May 22, 2024. Retrieved May 22, 2024.
  17. ^ "IEA Atlas of Energy". International Energy Agency. May 2018. Archived from the original on January 10, 2021. Retrieved January 13, 2021.
  18. ^ a b "China overtakes US as the biggest importer of oil". BBC News. October 10, 2013. Archived from the original on October 10, 2013. Retrieved October 11, 2013.
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