China becomes Leading Nation in Manufacturing, Outweighs other Developed Economies

By Shubhendra Anand , 05 April, 2025

In recent years, China has cemented its reputation as the de facto superpower of the manufacturing sector, eclipsing the likes of the United States of America, Japan, and Germany, which were once considered the leaders in this area. These changes are due to China’s planning, investment, and policies. A survey report of 2024 shows China as the leading nation in the manufacturing domain.

In China, Manufacturing's next phase was entered in 1978 when reforms were initiated, opening the country up to foreign investment and trade. In this regard, the state, in particular, created Special Economic Zones (SEZs) like Shenzhen to attract foreign capital, technology, and know-how. These areas became hotbeds of China's industrial expansion, which ensured a favorable business climate and exemption from the tax burden. However, the recent survey of 20924 shows taken data till the 2022 financial year; China is still anticipated to be in the leading position for the next 5 years in the count.

Currently, China already has nearly 25% of its manufacturing share and is considered the largest manufacturer in the world. The nation has emerged as a powerhouse in sectors such as electronics, textiles, automobiles, and renewable energy. The large scale of the country, along with a skilled labor force and advanced infrastructure and government policies, ensured China's growth in terms of manufacturing.

Wage inflation, environmental constraints, and technological upgrades are some of the setbacks that the manufacturing sector in China suffers, too. In spite of those challenges, there’s reason to believe that China will continue to have overwhelming manufacturing capabilities in the near future due to its "Made in China 2025" policy, which is focused on the advancement of manufacturing technology in the nation and the prioritization of advanced industries. As the global market continues to shift, China will continue to evolve and grow in new and interesting ways. Its manufacturing industry has much more to give in the future.

Figure shows global statistics of the biggest manufacturing economies: