"The third industrial revolution is set to bring significant changes to the manufacturing sector. We should focus on areas like additive manufacturing, advanced robotics, and the energy Internet, and push for 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 noted that modern enterprise competition is not just about individual companies but also involves the management quality, cost advantages, and rapid response capabilities of upstream and downstream enterprises in the supply chain. The success of the entire industrial chain is fundamental to the fast development of Chinese enterprises and serves as the key to the transformation and upgrading of China’s manufacturing industry.
**High quality is the logo**
When it comes to quality and brand issues, Li Yizhong stressed that high-quality and well-known brands must become the hallmark of Chinese-made products. He pointed out that while China’s manufacturing is known globally for its affordability, there are still many challenges. The quality rejuvenation strategy has not yet been fully implemented as a national policy, and institutional mechanisms still have some flaws. Companies must take responsibility for providing high-quality goods and services to society.
In Li’s view, excellent brands should embody high quality, low carbon emissions, strong market presence, and long-term durability. “Improving quality, developing product varieties, and building strong brands are the core principles of China’s manufacturing industry. Quality and service must be recognized by consumers and tested by the market. At the same time, we must guide, create, and enhance consumption, expand demand, and strengthen the competitiveness of the industry.â€
**New technologies and innovation**
Li also highlighted 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 industrial structure, with particular emphasis on R&D of critical components and parts.
In recent years, China’s real economy has shown a tendency to drift away from its core, with a stark contrast in investment profit rates. Li believes that industry is still the dominant force driving the economy and should not be sidelined.
To grasp the development of the real economy and prevent industrial hollowing out, Li proposed several strategies: first, deepen understanding of the importance and challenges of industrialization, with quality and efficiency as key goals. Second, promote the strategic shift toward manufacturing services, including commerce, logistics, e-commerce, industrial design, and information services. Third, advocate for green and low-carbon development, integrating ecological civilization into industrial growth, promoting a circular economy, using advanced technology to save energy and reduce pollution, and encouraging enterprises to invest in environmental protection.
**Management must pay attention to five areas**
With the third industrial revolution—marked by new energy and digital technologies—personalized and intelligent manufacturing is becoming more prominent. Huang Qunhui, deputy director of the Institute of Industrial Economics, noted that major developed countries are implementing re-industrialization strategies. Technologies such as AI, robotics, and digital manufacturing are challenging China’s traditional competitive advantages.
Huang explained that this re-industrialization is not a return to old models but a pursuit of technological innovation and advanced manufacturing breakthroughs to drive long-term economic stability. The third industrial revolution is not just a sudden change caused by individual technologies, but a result of broader IT development, leading to complex and evolving industrial transformations.
Studies suggest that 12 disruptive technologies, including 3D printing and the Internet of Things, could impact the global economy by up to $15–20 trillion by 2025, with seven of them directly related to manufacturing.
Under the new industrial revolution, manufacturing management reforms will focus on five key areas: production, marketing, strategy, human resources, and organizational structures. Production will shift from low-cost, high-volume to fast-response models. Human resource management will move toward fewer workers and more knowledge-based employees. Marketing will integrate products and services, while strategic management will evolve from core competence to platform-based approaches. Organizational structures will transition from hierarchical to networked systems.
**Create a lean full value chain**
Since the introduction of lean management concepts in the 1970s and 1980s, many Chinese manufacturers have adopted and adapted these practices. Lou Qiliang, vice president of China South Locomotive Group, shared how their company integrated lean production with two technologies to automate design, procurement, and production processes. They also focused on lightweighting—not just reducing the weight of factories and equipment, but also streamlining the workforce.
With the rise of cloud manufacturing and big data, China’s manufacturing sector is accelerating its transformation. Wang Yue, Dean of Apollo Lean Management School, believes that the future lies in the "lean full value chain" model, which is more systematic and tailored to China’s industrial characteristics than traditional lean manufacturing.
He Wei, a professor at Tianjin University, added that the evolution of business models—from department stores to hypermarkets and now online shopping—has brought businesses closer to consumers. This shift demands a leaner industry chain and the use of new technologies to build a more efficient and responsive manufacturing model.
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