Manufactured products make up more than 95% of China‘s exports, according to a World Trade Organization (WTO) report.
China is the world’s largest exporter of products and a fast-growing technology-driven economy, excelling in the production of electric vehicles and solar energy-related goods, for example.
Its exports are widely diversified, both in terms of the variety of products and their quality, as well as their geographic destinations.
Manufactured products
On October 7, 2022, the U.S. Department of Commerce issued regulations limiting the export of key products to China. These restrictions affect advanced semiconductors, supercomputer technology, advanced semiconductor manufacturing equipment, and components for certain equipment manufactured in China.
One year later, on October 17, 2023, these rules were updated with new provisions on export controls.
On the other hand, the manufacturing sector has accounted for 26% to 28% of China’s GDP over the past four years. Over the past few decades, China has established itself as a global leader in manufacturing.
China’s success in this sector is due to several factors. These include its integration into global value chains, trade and investment liberalization, as well as the availability of abundant and productive labor. In addition, China’s large domestic market, high-quality infrastructure and focus on innovation have been key determinants.
Made in China 2025
The “Made in China 2025” initiative is the key program to boost China’s manufacturing sector. This strategic plan promotes industrial upgrading and technological innovation.
China’s manufacturing sector receives significant government support. Support includes grants, research funding and tax concessions. In addition, several government funds are specifically designed to promote this sector.
According to the WTO, China has become a dominant player in global manufacturing over the past few decades. Currently, its gross output exceeds that of the next nine largest manufacturers combined.
The manufacturing sector is the second most important sector in the Chinese economy, second only to the services sector. Over the past four years, it has accounted for about 28% of total employment and has attracted approximately 25% of the country’s Foreign Direct Investment (FDI).