Advanced manufacturing becomes the defining pillar of China's 15th Five-Year Plan

Advanced Manufacturing to Anchor the 15th Five-Year Plan: How China's Industrial Structure Is Being Rebuilt from the Ground Up?

China is entering a new phase of industrial restructuring as the 15th Five-Year Plan begins - a shift that reaches far beyond incremental upgrades. The coming transition is set to rewrite the country's growth logic, resource allocation framework and market rules. Advanced manufacturing is no longer framed as an emerging driver; it is expected to become the core foundation of China's next-stage industrial system. This transition implies a move away from scale expansion toward value creation, technology security and efficiency-driven development. Traditional industries must "re-engineer their engines," while strategic emerging and future-facing sectors compete for strategic ground.

 

The investment- and land-driven model that previously powered China's growth has reached its limits. Under the 15th Five-Year Plan, fiscal, tax and performance-evaluation frameworks are being recalibrated toward innovation and quality:

Policy documents show a sharp rise in the frequency of terms such as "carbon," "innovation" and "green." Meanwhile, data already reveal a shift: high-tech and equipment manufacturing electricity consumption rose 5.9% in 2025, reflecting resource allocation moving toward advanced manufacturing.

 

The rise of advanced manufacturing is not the growth of a single sector but the simultaneous formation of a new industrial matrix through traditional industry transformation, emerging industry clusters and future industry deployment.

 

Government estimates suggest that technological upgrades and equipment renewals in chemicals, machinery, shipbuilding and related sectors could unlock close to RMB 10 trillion in market opportunities. The key is shifting from capacity expansion to technological upgrading.

For example, petrochemicals can leverage CCUS, green hydrogen and cogeneration to eliminate inefficient capacity, while moving toward higher value-added segments such as electronic chemicals and high-end polyolefins. Traditional industries are not being abandoned; they are expected to serve as the industrial "chassis" supporting advanced manufacturing.

 

Emerging sectors - including new energy, new materials, aerospace and the low-altitude economy - are shifting from isolated breakthroughs to integrated ecosystems. Two forces drive this:

 

Quantum technology, biomanufacturing, hydrogen energy, nuclear fusion, and brain-computer interfaces are identified as key future deployment directions. The development logic is "technological breakthroughs + scenario-driven applications," allowing space for trial-and-error to build long-term competitiveness, starting with integrated circuits, industrial mother machines and foundational software.

 

Industrial restructuring requires collaboration among three forces:

A unified national market combined with differentiated regional layouts aims to avoid resource over-concentration and support balanced development.

 

China's upcoming restructuring is fundamentally a shift from factor-driven to innovation-driven growth. Over the next five years, the real upside lies in three capabilities: identifying viable technological pathways for industrial upgrading, building ecosystems aligned with downstream demand, and capturing positions in next-generation industries.