China’s Manufacturing Outlook towards 2035

Liu Yong*

Institute of Industrial Economics, Chinese Academy of Social Sciences (CASS), Beijing, China;

School of Government, University of Chinese Academy of Social Sciences (UCASS)

Abstract: Over the past seven decades since the founding of the People’s Republic of China in 1949, China has emerged as the factory floor of the world. Manufacturing prowess has undergirded China’s industrial growth, competitiveness, and leading-nation status. The Fifth Plenum of the 19th CPC Central Committee vowed to “basically complete new-type industrialization, ICT revolution, urbanization, and agricultural modernization and build a modern economic system by 2035.” To achieve this goal, China must steadfastly advance supply-side structural reforms, strengthen the real economy, develop advanced manu fac tur ing , and upgrade trad i t iona l indus tr ies . Ch ina mus t crea te a s tab le and competitive supply chain and enhance the dynamism of market entities. At the heart of these priorities lies innovation. In conclusion, this paper puts forth policy recommendations on China’s manufacturing strength and competitiveness towards 2035. Specifically, China should leverage its market heft and “whole-nation” strength to push forward industrial transition, deepen market-based factor allocation reforms, encourage entrepreneurship, and embrace international cooperation and competition.

Keywords: the year of 2035, manufacturing development, new ambitions

JEL classification code: O14, O25P21

DOI: 10.19602/j.chinaeconomist.2021.01.03