China's manufacturing continues to capture the attention of consumers worldwide. According to data from the Ministry of Commerce of China, from January to July of this year, foreign visitors spent 263.6 billion yuan ($39.28 billion USD) in China, which is 27.8% more than in the same period last year. Furthermore, the number of international travelers applying for tax refunds on departure has more than tripled during the same period.
The question of why China maintains its status as the world leader in the volume of added value of production for 16 consecutive years can be clarified by analyzing several popular products. The Yuyue area, located in Zhejiang province in eastern China and known as the 'world supermarket,' demonstrates how local enterprises transform small goods into large businesses, even though it is neither on the border nor by the sea.
Recently, the 'palm-sized hat' went viral on social media. This product quickly transitioned from an early morning trend to mass production in Yuyue by noon, and then rapidly reached markets in Europe and the United States. Earlier this year, the 'crying horse' toy unexpectedly became popular, and manufacturers from Yuyue increased production within 48 hours. By mid-year, they had already stocked items related to the World Cup even before the tournament began.
Yuyue has moved away from the old model of passive contract manufacturing (OEM). It is now capable of determining market demand with 'zero time lag' and linking it to production almost without any obstacles. Instead of waiting for the next trend, this region is increasingly helping to shape consumer trends. The transition from waiting for the wind to catching it illustrates how flexible market thinking can quickly transform emerging demand into business opportunities.
In May this year, Chinese tech giant Huawei introduced its Tau Scaling Law, replacing 'geometric scaling' with 'temporal scaling' and successfully developing and launching mass production of hundreds of chip models. Similarly, new energy vehicle manufacturer BYD abandoned traditional cylindrical and prismatic battery designs, developing its Blade Battery, which solved key safety issues in power batteries through structural innovations. Motorcycle manufacturer ZXMOTO also chose a different path, developing a three-cylinder water-cooled engine that attracted attention at an international racing track.
These examples show not just a change in technological approaches, but a deeper wisdom of industrial renewal: by daring to break established norms and seek new paths, seemingly insurmountable bottlenecks can turn into breakthroughs of independent innovation.
In recent years, new products have been launched onto the market at high speed, and new technologies are developing at an accelerated pace. A key reason is that China plans ahead, laying the foundation and building potential to overcome changes. For example, in the field of artificial intelligence (AI), electricity is the fundamental basis. Creating large AI models requires not only advanced AI chips and complex algorithms but also abundant, reliable energy infrastructure. Thanks to continuous investment over many years, China has built the world's largest ultra-long-distance power transmission network and renewable energy system, giving it a distinct energy advantage in the AI race.
From 5G networks and modern logistics needed to support advanced manufacturing, to cultivating a large pool of highly qualified engineers and technical specialists, China has consistently invested in key foundations. These efforts have formed a comprehensive, multi-level industrial structure covering all major sectors and strengthened the resilience of the manufacturing sector, allowing it to withstand pressure and adapt to changing conditions.
China transformed its manufacturing sector into a global power not through a 'neighbor-exploiter' policy or zero-sum competition, but through openness, cooperation, and mutual benefit. In Africa, in the China-Egypt Economic and Trade Cooperation Zone in the Suez Canal, industries covering new energy sources and household appliances were created, providing jobs for over 10,000 people. In Southeast Asia, China's textile sector has been closely integrated into the production chains of Malaysia and other countries, forming a model of cooperation: 'China supplies raw materials, ASEAN produces finished clothing, and the world opens markets.'
In Latin America, numerous Chinese automakers have opened factories in Brazil, stimulating local industrialization through capital investment and the development of local talent. All of this highlights the flexibility, strong execution, and openness of Chinese manufacturing. As profound changes occur—changes unseen in a century—and a new round of scientific and technological revolution and industrial transformation gains momentum, Chinese manufacturing, remaining dynamic and adapting to changes, will be full of vitality and achieve even greater success.