"The third industrial revolution is set to bring significant changes to the manufacturing sector. We should focus on areas such as additive manufacturing, advanced robotics, and the energy Internet, while promoting the transformation and upgrading of the equipment manufacturing industry," said Li Yizhong, former Minister of the Ministry of Industry and Information Technology and President of the China Federation of Industrial Economics. Recently, at the 10th China Manufacturing International Management Forum, he emphasized that industry remains a key driver of economic growth. It's essential to firmly grasp the development of the real economy, avoid industrial hollowing out, and prevent the marginalization of the manufacturing sector.
The theme of this year’s forum was “From manufacturing to creation, maximizing the value of the entire industry chain.†Li highlighted that modern enterprise competition is not just about individual companies but also involves the entire supply chain—management quality, cost advantages, and rapid response from upstream and downstream partners. The success of the whole industry chain is crucial for the rapid development of Chinese enterprises and serves as the key to transforming and upgrading China’s manufacturing industry.
**High quality is the logo**
When it comes to quality and branding, Li Yizhong stressed that high-quality, well-known brands must become the hallmark of "Made in China." He noted that while China's manufacturing is known for being affordable and widespread, there are still many challenges. The quality rejuvenation strategy has yet to be fully implemented as a national policy, and institutional mechanisms still have shortcomings. He emphasized that the responsibility of manufacturers is to provide quality goods and services to society.
In his view, excellent brands should embody high quality, low carbon emissions, market dominance, and long-term durability. Improving quality, developing new products, and building strong brands are central to China’s manufacturing industry. Quality and service must be recognized by consumers and tested in the market. At the same time, companies must guide, create, and enhance consumption, expand demand, and strengthen industry competitiveness.
**New technologies are critical**
Li pointed out that new technologies and product development remain weak points in China’s manufacturing industry. He called for the adoption of advanced technologies and materials to develop advanced manufacturing, improve efficiency, and optimize the manufacturing structure, with a particular focus on R&D of key components and parts.
In recent years, China’s real economy has shown a tendency to deviate from its core, with a large disparity in investment returns. Li argued that industry should still be the dominant force driving the economy and should not be overlooked or marginalized.
To address these issues, he proposed several strategies: first, deepening the understanding of the importance and challenges of industrialization, with quality and efficiency as the key to progress. Reform is necessary, and all regions must work together to achieve coordinated and differentiated development. Second, promoting the strategic shift toward manufacturing services, including commerce, logistics, e-commerce, industrial design, and information services. Third, advocating for green and low-carbon development, supporting the construction of ecological civilization, and encouraging circular economy practices through advanced technology and equipment.
**Management must pay attention to five areas**
As the third industrial revolution, driven by new energy and digital technologies, marks the arrival of the information age, personalized digital and intelligent manufacturing are becoming more prominent. Huang Qunhui, Deputy Director of the Institute of Industrial Economics at the Chinese Academy of Social Sciences, noted that developed countries are implementing re-industrialization strategies, which involve artificial intelligence, robotics, and digital manufacturing—technologies that are challenging China’s traditional competitive advantages.
Huang emphasized that this third industrial revolution is not just a sudden technological change, but a result of information technology development, leading to a multi-layered and evolving industrial transformation. Studies suggest that 12 disruptive technologies, such as 3D printing and the Internet of Things, could impact the global economy by $15–20 trillion by 2025, with seven of them directly related to manufacturing.
Under this new industrial landscape, manufacturing management reforms will focus on five key areas: production, marketing, strategy, human resources, and organizational structures. Production will shift from low-cost, mass production to fast-response consumer-driven models. Human resource management will move toward fewer, more skilled workers. Marketing will integrate products and services, while strategic management will evolve from core competencies to platform-based strategies. Organizational structures will transition from hierarchical to networked models.
**Create a lean full value chain**
Since the introduction of lean management concepts in the 1970s and 1980s, many Chinese manufacturing companies have embraced lean practices. Lou Qiliang, Vice President of China South Locomotive Group, shared how their company integrated lean production with two technologies to automate design, procurement, process, and production. They also focused on lightweighting—not just reducing physical assets but also streamlining workforce size.
With cloud manufacturing and big data shaping the future of manufacturing, China’s transformation is accelerating. Wang Yue, Dean of Apollo Lean Management School, believes that the future of Chinese manufacturing lies in the lean full value chain, which is more systematic and tailored to China’s unique needs. After over 20 years of development, China’s lean practices have reached a critical stage, where industry chain competition will dominate, and diversification and extension of the supply chain will drive sustainable growth.
He Wei, a professor at Tianjin University, added that with the rise of e-commerce and logistics, business models are changing, bringing companies and consumers closer. This requires a lean, agile industry chain and the use of new technologies to build a new manufacturing model.
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