During the summer period, the development of smart manufacturing in China attracted global attention. Chinese air conditioners continue to provide cooling in Europe, orders for transformers have been extended until 2027, and breakthroughs in robotics are attracting buyers both abroad and domestically. Furthermore, domestically developed chips have become one of the leading export categories.
Acceleration of Transformer Production
The speed of transformer delivery has significantly increased. Where foreign manufacturers require up to 24 months to meet the same specifications, the process in Changzhou, Jiangsu Province, in eastern China, now takes only four months. This progress is due to the implementation of smart factories. At Guanghui Transformer, a production line involving about ten operations can function with only two workers thanks to substantial productivity gains from digital technologies.
Artificial intelligence is also accelerating industrial design development. Intelligent tools have reduced the transformer design cycle from four to five months internationally to approximately one month. Behind this speed is a fully formed industrial ecosystem. Most key components, including insulating materials, coils, and iron cores, can be supplied within the Yangtze River Delta region. Integrated logistics hubs allow for direct transportation of transformers from Changzhou to the Port of Shanghai for export to over 40 countries and regions worldwide, increasing efficiency by 10–15%.
China accounts for about 60% of the world's transformer production capacity. In the first half of the year, exports of mechanical and electrical products reached 9.36 trillion yuan (approximately $1.38 trillion), which is 20.1% higher compared to the same period last year.
Popularity of Home Appliances in Europe
Due to prolonged heatwaves in Europe, summer cooling products are in high demand on the Yuwu International Trade Market. The popularity of Chinese home appliances in Europe is growing not only because of pricing but also due to the ability to quickly adapt products to local requirements. For example, a portable air conditioner from Midea was designed with the needs of European renters in mind: it is easy to install, does not require drilling, and can be set up in about 20 minutes.
Moreover, a patented AI-based temperature control technology from the company reduces energy consumption by 40% compared to traditional inverter systems, meeting strict European energy efficiency standards and carbon regulations. Behind the compact device are advancements in algorithms, materials, and low-carbon manufacturing. In 2025, Midea received over 13,000 new global patents, including more than 2,000 abroad.
According to data from the General Administration of Customs of China, exports of white goods, including air conditioners, fans, and refrigerators, amounted to 107.91 billion yuan (about $15.95 billion) in the first half of the year.
Growth of the 'New Three' Sector
A new generation of Chinese exports is gaining momentum within the 'new three' category—electric vehicles, lithium-ion batteries, and solar cells. In the first half of this year, robots, artificial intelligence, and innovative medicines, dubbed the 'new new three,' became key export areas. However, this is not a static list, but rather a relay race.
Exports of domestically developed surgical robots have tripled, reaching 480 million yuan (about $70.94 million). Cleaning robots have begun appearing in homes around the world, while humanoid, robotic dogs, and bionic robots are expanding their presence in new markets. The total export of cleaning and intelligent bionic robots reached 18.09 billion yuan (about $2.67 billion). This rapid growth is supported by China's complete industrial chain and vast domestic market, which allow companies to quickly test, improve, and refine technologies. Chinese companies involved in humanoid robots collaborate with global manufacturers in aviation, semiconductors, automotive, and intelligent logistics.
The Ministry of Industry and Information Technology forecasts that humanoid robot production in China will exceed 100,000 units this year.
Chips as a Leading Export Commodity
Producing over 1.5 billion chips per day sounds futuristic, but it is already the daily production volume in China's integrated circuit industry. China has become the second-largest chip exporter in the world. In June alone, the export of integrated circuits reached $38.21 billion, accounting for almost 10% of the total export value, making chips the largest export commodity of China and contributing to overall export growth by 6.5 percentage points.
Chips, often called the 'food of modern industry,' reflect progress across the entire production chain—from equipment and materials to design and manufacturing. Chinese companies continue to push technological boundaries. In May, Huawei introduced the concept of 'Tau (τ) Scaling Law'—a foundation that shifts the main optimization target of the industry from transistor size to signal speed. The company stated that over the past six years, it has mass-produced 381 chips based on the Tau (τ) Scaling Law for smartphones, AI, automotive, and infrastructure industries.
According to the World Bank, by 2025, the added value of Chinese production will rank first globally for 16 consecutive years, accounting for about 30% of the global total. Currently, there are over 600,000 science and innovation-oriented enterprises in the country, transforming it into a vital hub for global industry, logistics, and value chains.
Professor Enrique Dussel Peters of the National Autonomous University of Mexico noted that China's experience demonstrates that a comprehensive and efficient industrial system is capable not only of supporting internal economic growth but also of creating opportunities for the modernization of other countries' industries.
