The development strategy and practice path of Chinese industrial modernization from the perspective of technological revolution

Since the onset of the industrial age, humanity has undergone or is currently experiencing four technological and four industrial revolutions. Each revolution has introduced a range of disruptive technologies, substantially increasing production efficiency, fostering NQPFs and enabling a qualitative transformation in modes of production. Each industrial revolution has given rise to new industries, business models and energy sources, resulting in a qualitative transformation in the structure, organization and scale of industrial activities. Only those nations or civilizations that successfully capitalize on the opportunities brought about by technological and industrial revolutions can secure a first-mover advantage, thereby achieving national rejuvenation and prosperity.

To date, human society has undergone the first, second and third technological revolutions and is currently in the midst of the Fourth Technological Revolution. The First Technological Revolution took place in the 18th century, with its primary scientific foundation rooted in Newtonian mechanics and calculus. A key characteristic of this revolution was the substantial advancement of steam technology, as steam engines were extensively applied across various industrial sectors. This led to a revolutionary breakthrough in industrial power sources and significantly improved production efficiency. The Second Technological Revolution occurred in the 19th century, with its primary scientific theoretical foundation rooted in electromagnetic theory. The hallmark of this era was the progressive maturation of electrical technology, as electricity became widely adopted in assembly lines, replacing steam engines as a new energy source. This transition led to large-scale standardized production gradually dominating the manufacturing sector. The Third Technological Revolution occurred in the 20th century. Its primary scientific theoretical foundations included quantum mechanics, cybernetics and information theory. The hallmark of this revolution was the groundbreaking advancement of information technology. Computers were progressively adopted across various industries, leading to an increase in the level of production automation and a revolutionary enhancement in productivity. The Fourth Technological Revolution emerged in the 21st century, with intelligent science serving as its primary scientific foundation. This encompasses disciplines such as neuroscience, psychology, cognitive science and computer science. A defining characteristic of this revolution is the rapid advancement of intelligent technology, with intelligent robots being widely deployed to replace many tasks previously performed exclusively by humans. The level of intelligence in industrial production continues to rise, resulting in fundamental transformations in both production processes and lifestyles. The first three technological revolutions established the groundwork for the Fourth Technological Revolution, and their advancements continue to be extensively applied in the 21st century. The Fourth Technological Revolution is currently in progress and remains incomplete. Its innovations are significantly transforming the modes by which humans engage in production and daily life.

Technological revolutions act as precursors and foundations for industrial revolutions. Prior to each industrial revolution, substantial advancements and transformations in technology occurred, providing the necessary technological support and enabling conditions for the emergence of new modes of production. Subsequent to each technological revolution, an industrial revolution inevitably ensues. The First Industrial Revolution commenced in Britain during the 1760s, marked by the widespread adoption of steam engines as the motive power. It ushered in an era where machines replaced manual labor, and machine-based mass production took the place of handicraft workshops. The revolution significantly enhanced productivity, reshaping the global landscape and established Britain as the global hegemon shortly after its completion. The Second Industrial Revolution commenced in the latter half of the 19th century, characterized by the extensive adoption of electricity, which heralded the era of human electrification. This period witnessed the emergence of assembly-line production and large-scale standardization, giving rise to new industries such as power, chemical, petrochemical and automotive sectors, thereby significantly boosting labor productivity. It also led to the proliferation of advanced monopoly organizations, including trusts, while enhancing transportation infrastructure and strengthening global interconnectivity. Subsequently, European nations, the United States and Japan completed their transitions through the Second Industrial Revolution, establishing themselves as developed countries. The Third Industrial Revolution, which commenced in the 1940 and 1950s, was characterized by the widespread adoption of electronic information technology and the Internet, thereby heralding a new era of production automation. The Third Industrial Revolution facilitated a progressively more refined division of labor within the industrial sector, leading to the emergence of numerous new industries and a substantial qualitative enhancement in production efficiency, thereby signifying the onset of the era of economic globalization. The Fourth Industrial Revolution, which commenced in the early 21st century, is characterized by the integration of smart technologies, big data analytics and the Internet of Things (IoT), thereby driving humanity into an era of personalized, interconnected and intelligent production. The Fourth Industrial Revolution (4IR) is set to fundamentally transform the modes of production of traditional manufacturing and profoundly reshape the mechanisms of knowledge generation and scientific and technological innovation, thereby providing humanity with a comprehensively intelligent lifestyle. As 4IR continues to unfold, it remains far from completion and the modes of production are currently experiencing revolutionary shifts. Cyber physical systems (CPS) serve as the technological cornerstone of the 4IR ^[1]. Through CPS, we are “constructing a highly intelligent and interconnected society by integrating all resources into an IoT and service network. This enables seamless integration of the value chain across both horizontal and vertical dimensions, ultimately realizing the revolutionary production model of ‘socially collaborative intelligent manufacturing’” (Wei, 2015, p. 4).

In the history of human development, the process of industrialization has been closely associated with modernization. The achievement of industrialization by a nation signifies its advancement toward modernity. Since the First Industrial Revolution, humanity has entered the era of the industrial economy, in which industry has become the dominant economic activity. It serves as the foundation of nation-building, the instrument for national rejuvenation, the cornerstone of national strength and the source of national prosperity. In today’s world, countries that lead in modernization are those that have completed their industrialization processes. Without achieving industrialization, it is impossible to establish a truly modernized nation. The scale, diversity, forms, production methods and organizational structures of industries are continually evolving. Compared to a century ago, today’s industries have undergone profound transformations, with industrial modernization being an ongoing process. Each technological revolution triggers a qualitative leap in industrial development, leading to revolutionary changes in production models and fostering the emergence of numerous new sectors. This also drives the rise of several global superpowers. The nation that successfully captures the core technologies of a technological revolution and leads the transition from a technological to an industrial revolution is likely to ascend to the uppermost tier of global influence. The UK emerged as the most powerful country in the world during the First Industrial Revolution. The US became the leading nation during the Second Industrial Revolution and retained this status throughout the Third Industrial Revolution. The achievements of the UK and the US can be attributed to their command over the most advanced and core technologies during these three industrial revolutions, enabling them to monopolize emerging, dynamic and high-growth pillar industries. In contrast, China was consistently in a “follower” position during the first three industrial revolutions, significantly trailing behind the technologically and industrially advanced nations of its time. In the context of the ongoing Fourth Industrial Revolution, China has achieved remarkable advancements in several critical core technologies. Notably, technologies such as 5G communication and artificial general intelligence (AGI) have reached a world-leading status. These core technologies play a pivotal role in enabling the Internet of Everything and intelligent connectivity, serving as the foundational pillars of the Fourth Industrial Revolution. The success of China’s industrial modernization depends on its capacity to secure a leading role in the next generation of information technologies, including artificial intelligence (AI), quantum information, mobile communication, the IoT and blockchain. This will facilitate the rapid development of several strategic emerging industries and enable the transformation and upgrading of manufacturing toward intelligence, service orientation and sustainability. Consequently, a comprehensive, efficient and scientifically advanced intelligent manufacturing industrial system can be established.

From an analysis of the paths taken by countries that have achieved industrial modernization worldwide, it becomes evident that while each nation's industrialization process possesses unique characteristics, certain commonalities also emerge, reflecting a discernible pattern or regularity. The development of China’s industrialization will similarly be subject to these universal principles.

Industrial modernization is a continuous and evolving process, wherein each technological revolution accelerates the pace of industrial modernization while endowing it with new content, requirements and objectives. Scientific and technological innovation serves as the fundamental driving force behind industrial modernization (Hong, 2023, p. 30). When a significant number of scientific and technological innovations are integrated into production activities and transformed into tangible products, new industries emerge, triggering industrial revolutions and thus enabling industrial modernization to achieve qualitative leaps. In the history of scientific development, major discoveries in scientific theories such as Newtonian mechanics, calculus, electromagnetism, general relativity, quantum mechanics, cybernetics, information theory, neuroscience and other fields have facilitated the emergence of major scientific and technological innovations, including steam engines, electric motors, generators, radio waves, quantum information technologies, the IoT, blockchain, AI, gene editing and beyond. These advancements have given rise to new industries such as aviation, aerospace, atomic energy, home appliances, the Internet, computing, smartphones and biotechnology and have significantly propelled industrial modernization to unprecedented levels. “Since the turn of the twenty-first century, the unprecedentedly intense scientific and technological innovation has given rise to a new round of scientific and technological revolution and industrial transformation, which in turn is reshaping the global innovation landscape as well as the global economic structure” (Xi, 2020, p. 245). Currently, the role of scientific innovation in driving industrial modernization has become more significant than ever before. The degree of scientific innovation capability directly influences the level of a nation’s industrial modernization. Strong science and technology lead to thriving industries; thriving industries lead to a powerful nation.

Industrial modernization represents both a strategic objective and an ongoing process. The core of achieving industrial modernization lies in enhancing production efficiency, upgrading modes of production and improving product quality, thereby facilitating a comprehensive upgrade in both the quantity and quality of industrial output. By reviewing the three industrial revolutions that have already occurred as well as the current Fourth Industrial Revolution, it becomes evident that each has driven substantial increases in production efficiency, significant expansion in production scales and the emergence of new industries, ultimately leading to a qualitative advancement in the level of industrial modernization. As depicted by Marx and Engels (2012, p. 405), “The bourgeoisie, during its rule of scarce one hundred years, has created more massive and more colossal productive forces than have all preceding generations together. Subjection of nature's forces to man, machinery, application of chemistry to industry and agriculture, steam navigation, railways, electric telegraphs, clearing of whole continents for cultivation, canalization of rivers, whole populations conjured out of the ground.” In the First Industrial Revolution, the widespread adoption of key technologies, including steam engines, looms and machine tools, led to a dramatic increase in efficiency across industries such as railroads, textiles, machinery, coal and metallurgy, often enhancing productivity by several hundred or even thousands of times. In the Second Industrial Revolution, the large-scale deployment of electricity, internal combustion engines and chemical innovations gave birth to new industries, such as power generation, telecommunications, chemical processing, automobiles and aviation, while also significantly boosting the efficiency of established sectors like steel and oil. In the Third Industrial Revolution, the widespread integration of electronics, automation control, aviation and other high technologies significantly enhanced efficiency across industries such as electronics, computers, television, nuclear power, aerospace and beyond. Numerous sectors achieved automated production, marking an unprecedented advancement in industrial modernization. In the Fourth Industrial Revolution, core technologies including information technology, cloud computing, quantum communication, AI, green technology and blockchain are being actively developed and implemented. As a result, information-based industries, e-commerce, smart manufacturing, the IoT, big data, advanced materials and robotics are flourishing, ushering humanity into an era of intelligent production and driving another qualitative leap in industrial modernization.

Drawing on the development trajectory of industrial modernization in today’s advanced economies, the process is best characterized as continuous structural upgrading. In this process, the share of the primary sector (primarily agriculture) in terms of value-added and labor force gradually declines, the share of the secondary sector (primarily manufacturing) witnessed a rise followed by a decline, while the share of the tertiary sector (primarily services) in terms of value-added and labor force progressively rises. British economists William Petty and Colin Clark developed the Petty–Clark theorem by analyzing the industrial evolution trends of industrialized countries, including the US, the UK, France, Germany and Japan. Their research demonstrated that as societal per capita national income increases, the employed population initially transitions from the primary sector to the secondary sector. Furthermore, when per capita national income reaches a higher level, there is a pronounced shift of the employed population toward the tertiary sector. American economist Simon Kuznets, drawing upon the research findings of Petty, Clark and others, meticulously analyzed historical data from various countries and applied modern economic statistical methods to comprehensively investigate the relationship between changes in industrial structure and economic development. By examining the patterns of changes in total output and employment population structure based on the per capita GDP share benchmark, he revealed the overarching trends in industrial structural changes, thereby further substantiating the Petty–Clark Theorem. He observed that, with economic development, the proportion of national income generated by the agricultural sector in total national income as well as the share of agricultural labor in the total labor force, both exhibited a declining trend. Meanwhile, the proportion of national income from the industrial sector generally showed an upward trend, while the share of labor in the industrial sector remained stable or increased slightly. Additionally, the share of labor in the service sector increased in almost all countries. In the process of industrial modernization, there is a notable trend of continuous upgrading within the industrial structure of the sector. This is characterized by a gradual decline in the proportion of value-added and labor contributions from traditional industries, while emerging industries experience a rapid and substantial increase in the proportion of value-added. Although the labor proportion in emerging industries also increases, it does so to a much lesser extent compared to the rise in value-added contributions. The ultra-rapid growth of China’s solar industry, new energy vehicles and intelligent robotics sectors, to some extent, reflects the acceleration of industrial structural upgrades in China and signifies a significant improvement in the country’s level of industrial modernization.

In the history of industrial development, the process of industrial modernization demonstrates distinct phased characteristics. Each industrial revolution has triggered substantial transformations in industrial modernization, thereby showcasing the phased evolution of the entire industry. During the early stages of these revolutions, the widespread application of new key technologies and the rapid growth of emerging industries have significantly enhanced overall industrial production efficiency. Midway through these revolutions, key technologies were extensively adopted across all industrial sectors, leading to increasing technological maturity and a gradual slowdown in the growth rate of emerging industries. In the later stages, the economic structure within industrial sectors became largely stabilized, with only marginal changes in overall industrial productivity, causing the pace of industrial growth to decelerate. New scientific and technological innovations began to take shape, setting the stage for the next industrial revolution. In general, industrial modernization demonstrates a cyclic, wave-like evolutionary pattern. By examining the development trajectories of nations worldwide, industrial modernization can be categorized into leading industrial modernization and catch-up industrial modernization. Developed countries exemplify leading industrial modernization, whereas developing countries represent catching-up industrial modernization. Leading industrial modernization is characterized by significant investment, higher risks and greater potential returns, offering an initial advantage. In contrast, catch-up industrial modernization involves relatively lower investment, reduced risk and cost efficiency. It leverages advanced technologies and experiences from developed countries, thus providing a late-mover advantage. Becoming a leading country demands stringent conditions – only a handful of nations can achieve leading industrial modernization, while most remain in the catch-up category. Industrial modernization is a dynamic, unbalanced process, with its characteristics evolving both qualitatively and across different national contexts. “Over the past three centuries, industrial modernization has proceeded asynchronously, as evidenced by variations in the rate of industrial efficiency growth, transformations in industrial structure, shifts in industrial institutions and ideologies, and changes in industrial forms” (Liu and He, 2016). Industrial modernization and its accomplishments demonstrate significant spatial disparities, with only a limited number of countries successfully achieving this status. Industrial modernization can be viewed as an international competition, where a small fraction of nations emerge as global industrial hubs through competitive dynamics. Nevertheless, the global industrial center is not static and can be redefined by emerging industrial revolutions.

Modern China, as a backward agricultural country, did not undergo substantial transformations in its mode of production during the First and Second Industrial Revolutions. Its industrial capabilities remained significantly behind those of globally advanced nations for an extended period. As a late-developing country, China has consistently endeavored to bridge the gap with world leaders. However, it was only after the founding of the People’s Republic of China (PRC) in 1949 that China truly entered the fast lane of industrial modernization. The process of Chinese industrial modernization can be divided into three broad phases. Each phase has distinct characteristics, yet all are intrinsically linked and guided by the overarching logic of China’s modernization trajectory.

The period from the founding of the PRC to the eve of the Reform and Opening-up marked the initial phase of China’s industrial modernization. During this time, China accomplished socialist transformation, established socialist economic systems and constructed an independent and relatively comprehensive industrial system and national economy framework, thereby laying robust institutional and material foundations for Chinese industrial modernization. At the establishment of the PRC, the Chinese economy was underdeveloped and fragile, with individual agricultural and handicraft economies, which were largely fragmented, accounting for nearly 90% of the total national economic output. Modern industries represented merely about 10% of the total national economic output, while critical sectors such as energy, transportation, iron and steel and machinery manufacturing, which indicate the degree of national industrialization, exhibited a substantial lag compared to international standards. Faced with the complex international and domestic political and economic environment at the founding of the PRC, the government pursued an industrial strategy that accorded top priority to heavy industry and the rapid expansion of its defense sector. By 1952, China had basically completed the task of economic recovery. Accordingly, starting in 1953 with the implementation of the First Five-Year Plan, the country entered a comprehensive phase of economic construction, initiating an upsurge in socialist industrialization.

During the period of the First Five-Year Plan, the nation’s industrial output value increased significantly, achieving an average annual growth rate of 18%, while the output of means of production rose by an average of 25.4% annually (Wu, 2010, p. 293). By 1957, the output of 46 major industrial products had significantly increased, with steel production reaching 5.35 m tons—nearly tripling the level in 1952. After five years of economic development, the proportion of industry in total agricultural and industrial output rose from 41.5 in 1952 to 56.5% in 1957. Moreover, both industrial productivity and the technological level had undergone substantial improvement. Following this period, China’s industrial development encountered certain setbacks. However, overall, the first phase was characterized by rapid industrial growth and notable achievements. In 1978, the total industrial output value, calculated at current prices, reached 423.7 bn yuan, with heavy industry contributing 241.1 bn yuan or 56.9% and light industry accounting for 182.6 bn yuan or 43.1%. The output of major industrial products saw substantial growth during this time. In 1978, the production of raw coal reached 618 m metric tons (an increase of 9.36 times compared to 1952), crude oil production amounted to 104.05 m metric tons (a 236.5-fold increase from 1952), natural gas production totaled 13.73 bn cubic meters (a 1716.3-fold increase compared to 1952), electricity generation was 256.6 bn kilowatt-hours (31.2 times higher than in 1952), steel output was 31.78 m metric tons (23.5 times that of 1952), cement production reached 65.24 m metric tons (22.8 times higher than in 1952), fertilizer production was 8.693 m metric tons (a 222.9-fold increase from 1952), sewing machine production amounted to 4.865 m units (a 73.7-fold increase compared to 1952) and bicycle production reached 8.54 m units (a 106.8-fold increase from 1952). Nonetheless, it is undeniable that China, as a developing country, still has a considerable gap in industrial level compared with developed countries in the world. The automobile industry serves as a key indicator of technological advancement. For instance, in 1978, China’s automotive production amounted to only 1.49 m vehicles (excluding domestic and military vehicles), accounting for less than 3.6‰ of the world’s total automobile output (Wu, 2010, pp. 656–657).

The period from the launch of the Reform and Opening-Up policy in 1978 to the convening of the 18th National Congress of the Communist Party of China in 2012 marked the second stage of China’s industrial modernization. During this time, China transitioned from a highly centralized planned economy to a dynamic socialist market economy and moved from a state of relative isolation to comprehensive openness, thereby achieving a historic transformation. This era witnessed the realization of globally rare “miracles” of rapid economic growth, opened up a new path for China’s industrial modernization and achieved unprecedented progress in industrial development. At the onset of the Reform and Opening-up policy, China’s industrial sector was characterized by an irrational industrial structure, wherein overly heavy industries occupied a disproportionately large share. The development of light industries lagged significantly. Industrial distribution exhibited regional disparities, with the eastern regions advancing more rapidly than their central and western counterparts. The overall level of industrialization remained low, as modern industries constituted a relatively small proportion of the sector. Traditional and basic industries continued to dominate. Additionally, industrial efficiency was suboptimal and enterprises generally lacked robust profitability. Following the Third Plenary Session of the Eleventh Central Committee of the Communist Party of China in 1978, economic theorists and practitioners conducted extensive discussions on these issues, gradually formulating a new strategy for industrial development. These included: first, emphasizing the need to coordinate production, construction and people’s livelihoods; second, adjusting the service orientation of heavy industry, placing the development of consumer goods industry in an important position and strengthening the construction of energy and transportation industries; third, carrying out technological transformation in a focused and step-by-step manner and controlling the scale of capital construction within the scope compatible with the country’s financial and material resources and fourth, adjusting the investment structure, increasing investment in light industry and raising the proportion of investment in non-productive construction such as staff housing and urban public utilities. After three decades of sustained development, China’s industrial modernization has achieved remarkable progress. Since 2010, among the 500 major industrial products in the world, China has ranked first in more than 220 categories. In 2012, China produced 658 million tons of pig iron, accounting for 59% of global output and ranking first worldwide; crude steel production reached 717 m tons, representing 46.3% of the global total and maintaining the leading position globally; cement output amounted to 2.184 bn tons, exceeding 60% of global production and securing the top spot internationally; fertilizer production surpassed 68.4 m tons, contributing approximately 35% of the world’s total output; automobile production reached 19.2718 m units, representing 25% of global output and placing China at the forefront globally; television sets, mobile phones and integrated circuit chips ranked first globally in terms of shipment volume, accounting for 48.8, 70.6 and 90.6%, respectively. During this period, China gradually emerged as a major global manufacturing country, although it had not yet become a leading manufacturing power. Many core and key technologies were still firmly held by developed Western economies. Overall, China’s industrial sector remains in a stage of catching up.

Since the 18th National Congress of the Communist Party of China in 2012, China has entered the third phase of its industrial modernization. During this period, socialism with Chinese characteristics advanced into a new era and the principal contradiction in Chinese society has transformed into the contradiction between the people’s ever-growing needs for a better life and unbalanced and inadequate development. The CPC and China have witnessed historic achievements and profound transformations across various sectors, ushering in a new chapter of socialist modernization. The industrial sector has undergone qualitative improvements and significant progress has been made toward advancing a new model of industrialization. During this period, China’s manufacturing sector retained its status as the world’s largest producer, with a manufacturing GDP of $4.98 trillion in 2022. This figure exceeded the combined manufacturing value-added of the US ($2.79 trillion), Japan ($0.83 trillion) and Germany ($0.75 trillion), which ranked second, third and fourth globally, respectively. Since the 18th National Congress, China’s economy has entered a new phase characterized by the “new normal,” marked by a transition from resource-intensive growth emphasizing scale and speed to a more coordinated model prioritizing quality and efficiency. The economic structure has evolved from a primary focus on capacity expansion to a balanced strategy that includes optimizing existing resources while cultivating new sources of growth. Economic momentum has also shifted from traditional drivers to emerging ones. In response to this evolving economic “new normal,” substantial reforms and in-depth adjustments have been implemented across various industrial sectors. First, the intensity of supply-side structural reforms was enhanced to effectively address overcapacity, optimize the industrial structure and improve the quality and efficiency of the supply system. Second, the mode of industrial development shifted from a model primarily reliant on unskilled labor, increased capital investment and extensive use of energy resources to an innovation-driven approach encompassing technological progress, corporate innovation, product development, market expansion and brand building. This transition aimed to enhance the technological sophistication of industrial growth. Third, efforts were directed toward the development of strategic emerging industries – such as new generation information technology, biotechnology, new energy, new materials, high-end manufacturing equipment, new energy vehicles, environmental protection technologies, aerospace and marine engineering equipment – to foster new drivers of economic growth. Fourth, promote the integration of digital technologies with the industrial economy by advancing the development of the digital industry and industrial digitization. This will empower the transformation and upgrading of traditional industries, foster the emergence of new industries, business models and scientific and technological innovations, steer the industrial sector toward digitization, networking and intelligent development and further implement the strategy for innovative development of the industrial Internet and accelerate the building of a cyber power, a digital China and a smart society. Fifth, accelerate the construction of new infrastructure, including 5G networks, data centers, artificial intelligence, industrial Internet and the IoT, to establish an interconnected space encompassing all entities, human–computer interaction and a space–earth integration network. During this period, the latest wave of technological revolution and industrial transformation has progressed rapidly, accompanied by intensified competition for technological supremacy. In the realm of scientific and technological innovation, China has transitioned from a position of following and catching up with global leaders to one of coordinated advancement or even leadership in certain areas, significantly enhancing the nation’s capacity for scientific and technological innovation. Nevertheless, in numerous fields, the phenomenon of “bottleneck constraints” persists, wherein certain key core technologies remain dominated by Western developed countries.

China's industrialization has been an essential and integral component of global industrialization. It is not only profoundly influenced by the world’s technological and industrial revolutions but also profoundly affects the development trends of the world’s technological and industrial revolutions. In modern history, China’s industrial development considerably trailed that of the world’s advanced industrialized nations, with its scientific and technological advancements also falling behind those of leading countries. Although generations of people with lofty ideals have strived to achieve the prosperity and strength of the Chinese nation, even at the cost of their lives, they ultimately failed to enable China to keep up with the times or realize industrial modernization. Following the establishment of the PRC, genuine industrial modernization commenced. Within a relatively brief period of several decades, it traversed developmental phases that took Western developed nations centuries to complete, achieving remarkable economic growth and forging new pathways for China’s industrial modernization. Over the past seven decades since the founding of the People’s Republic of China, China’s industrialization has unfolded in three distinct phases. Each phase exhibits unique characteristics, yet all remain unified by the overarching objective of socialist modernization. These phases are deeply embedded in their respective historical contexts and significantly influenced by contemporary levels of scientific and technological advancement as well as key industries.

When the PRC was founded in 1949, the United States and other early-industrialized nations were already entering the early stages of what would later be termed the Third Industrial Revolution, centered on high technology. At the same time, most developing countries – especially those outside Western Europe and its settler offshoots – were still completing, or had only just begun, their Second Industrial Revolution, and only a handful emerged as new industrial powers. In the aftermath of World War II, a major transformation occurred in the global geopolitical landscape, accompanied by an intensification of economic globalization. During this period, the international division of labor was reshaped as advanced industrial nations exported capital, relocated manufacturing capacity and integrated other countries into the global economic system, thereby accelerating industrialization across a range of nation-states. It was precisely under these circumstances that the PRC launched the first phase of its industrialization process. Within just three years, the newly founded nation had effectively recovered from decades of war-related devastation and entered a period of vigorous economic development. During the First Five-Year Plan period (1952–1957), China “prioritized the development of heavy industry” as a strategic objective and gave full play to the advantages of the socialist system of “concentrating efforts on major undertakings.” As a result, the plan was completed successfully, and in some cases ahead of schedule, laying a solid foundation for subsequent industrial growth. During this period, the 156 key industrial projects, primarily undertaken with technological and financial assistance from the Soviet Union, played a crucial role in advancing China’s industrialization (Jin, 2017, p. 12). However, the “Great Leap Forward” and nationwide “Great Steelmaking Campaign,” which aimed to surpass Britain and catch up with the US within a short period, ultimately led to serious imbalances in the economic structure due to violations of economic principles and scientific rigor, putting the national economy in a severe crisis. Subsequently, substantial revisions were made to the economic policy. However, despite these modifications, the drawbacks of the planned economy system resulted in China’s industrial development trailing behind that of other countries, especially developed industrialized nations, prior to the initiation of the Reform and Opening-up policy.

Following the implementation of economic reforms in 1978, China entered the second phase of industrialization driven by market mechanisms. During the 1980s, significant changes occurred in the global political and economic environment. Western countries were severely affected by an oil crisis that disrupted their economic stability. Under the leadership of the Reagan administration in the US and the Thatcher government in the UK, both of which advocated neoliberal policies, the process of global economic globalization accelerated. At the same time, the US sought to improve relations with China as part of its strategy to counterbalance the Soviet Union. Against this backdrop, advanced Western economies increased their investments in China and eased restrictions on technology exports to China, enabling the Chinese economy to become deeply integrated into the international division of labor. Fueled by market incentives, China’s industrial sector experienced rapid growth. After three decades of sustained development, China’s manufacturing output surpassed that of the US in 2010 and has maintained its position as the global leader in subsequent years. During this period, the global division of labor saw the US retain a dominant position in high-value-added and high-tech industries, while emerging markets such as China were largely concentrated in sectors characterized by low added value, low technological content, high resource and energy consumption and severe environmental damage. Although China’s industrial sector flourished, it did so at a considerable cost. During this period, China adopted an export-oriented development strategy, fully capitalizing on its advantages in labor, resources, technology, geographic location and institutional frameworks. As a result, the country’s total volume of imports and exports sustained double-digit growth for several consecutive years. China’s manufacturing sector achieved multiple world records in terms of production output for various products. Many of its industrial outputs surpassed half of the global total, firmly establishing China as a true industrial powerhouse and the epicenter of global manufacturing. At that time, the gap between China and developed Western countries was gradually narrowing; however, a certain level of disparity still existed between China and the US. The US had already entered its third industrial revolution, during which the information technology sector served as a key driver of rapid advancement, enabling the country to firmly occupy the high end of the global value chain and maintain control over the world’s most advanced technologies. In contrast, China was in the process of completing its Second Industrial Revolution while simultaneously transitioning into the third. During this period, industries associated with the Second Industrial Revolution were rapidly developing or even achieving dominance in certain areas, while select emerging industries linked to the Third Industrial Revolution were also experiencing swift growth. Some Chinese technological products had begun to catch up with or surpass the world's advanced levels.

Following the 18th National Congress of the Communist Party of China, the Chinese economy entered a new stage of development, accompanied by a corresponding advancement in industrial modernization, marking its transition into the third stage. The global economic crisis triggered by the US financial crisis in 2008 had far-reaching impacts on major advanced economies worldwide, leading to a substantial transformation in China’s external economic environment. Notably, demand from overseas markets – previously a key driver of China’s economic growth – experienced a significant decline. China’s external political environment experienced subtle changes as the geopolitical ramifications of the Soviet Union’s dissolution began to manifest in the 1990s. The US increasingly regarded China as a strategic competitor rather than a cooperative partner, leading to greater restrictions on US investment and technological transfers to China. Incidents reflecting policies of “decoupling and supply disruption” became more frequent during this period. The Fourth Industrial Revolution has begun to unfold, characterized by core technological advancements in big data, 5G, the IoT, AI, biotechnology, new energy and advanced materials – all of which are profoundly reshaping human modes of production and lifestyle. In response, countries around the world have launched their respective Industry 4.0 initiatives, while China has formulated its “Made in China (2025)” action plan. In the wave of the Fourth Industrial Revolution, China has, for the first time, positioned itself on an equal starting ground with developed nations such as the US, Western European countries and Japan. In numerous technological domains, China has transitioned from a position of lagging behind to catching up and ultimately to becoming a global leader. Chinese advancements in 5G technology, AI, new energy, high-speed rail, quantum communications, ultra-high-voltage power transmission and 3D printing have placed the country at the forefront of global innovation. Meanwhile, China’s manufacturing sector is among the global leaders in informatization, networking and intelligentization. China is actively striving to build itself into a manufacturing power, a quality-driven nation, an aerospace power, a transportation power, an Internet power and a digitally advanced country. Chinese industries such as high-speed rail, new energy vehicles and intelligent robotics have achieved global leadership in many aspects. At the same time, core key technologies in many fields of China are still held by developed countries in the US and the West. “Bottleneck” technologies such as high-end chips, aero-engines, lithography machines, tactile sensors, vacuum evaporation machines and core industrial software still severely restrict China’s development. It is essential to objectively recognize that China’s per capita gross domestic product (GDP) remains relatively low and that its overall level of industrialization has not yet reached an advanced stage. Consequently, China still faces a substantial challenge on its path toward becoming an advanced industrialized country in the world.

Since the founding of the PRC, China has adopted industrial modernization development strategies across various historical periods. These strategies, influenced by the domestic and international political and economic contexts of their time as well as global technological developments, have varied significantly. Nevertheless, each of these strategies has made notable contributions to industrial development during its respective period.

During this phase, China primarily adopted the following strategies in its industrialization: First, priority was given to the development of heavy industry. In the early years of the PRC, the national economy was underdeveloped and highly imbalanced. The foundations of key heavy industries, such as energy, steel and machinery manufacturing, were weak and unevenly distributed. As a result, heavy industry emerged as a “bottleneck” sector that constrained China’s economic development. Furthermore, coupled with the outbreak of the Korean War and guided by the theory of “priority growth of means of production,” China prioritized the development of heavy industry until the early stages of the Reform and Opening-up period, during which it remained the priority direction of China’s industrial development. Second, an import substitution strategy was adopted. China sought to build an independent industrial system by emphasizing self-reliance, implementing import substitution policies, and continuously expanding domestic industries. Third, development was primarily driven by extensive development. Economic growth largely depended on the increased input of production factors – such as capital accumulation, production materials and labor – while the contribution of science and technology remained limited. Fourth, an inward-oriented development strategy was pursued. Industrial production mainly catered to domestic economic demands, with only a small proportion of industrial goods exported and minimal use of foreign capital. Except for substantial economic assistance from the Soviet Union in the mid-1950s, China received relatively little technological or financial support from foreign countries during this period and thus mainly relied on domestic resources for industrial development to pursue inward-oriented industrial development.

In the second phase, China primarily adopted the following strategies in its industrialization: First, China opened its economy to the world, pulling in massive amounts of capital, technology and managerial know-how from advanced Western countries and sparking a wave of foreign-invested enterprises and joint ventures that quickly lifted domestic firms’ management standards, technological capabilities and production capacity; second, it adopted an export-oriented model that leveraged labor, resource and later some technological advantages to turn the nation into a global trading powerhouse, with merchandise exports and imports reaching 10.4% of world trade in 2012 – second worldwide – up from only 0.8% and 29th place in 1978; third, it pursued a catch-up strategy, relying on imported production lines, foreign investment and technology transfers to speed growth while basic industries dominated and the share of high-tech industries remained modest; fourth, beginning in the early 2000s, it launched a new industrialization push under the banner of rejuvenating the nation through science and education, integrating information technology with industrialization, upgrading traditional industries with advanced and appropriate technologies and vigorously revitalizing equipment manufacturing and basic sectors and fifth, at the turn of the century, it kicked off coordinated regional development – large-scale western development, full revitalization of the northeast, accelerated rise of the central region and continued leadership of the east – thereby fostering a regional industrial structure marked by rational division of labor, distinct specializations and complementary strengths.

In the third phase, China has pursued the following strategies for industrialization: First, China has adopted an innovation-driven development strategy, making innovation the primary engine of economic growth and the key to endogenously enhancing industrial dynamism. Historic advances in basic research and original innovation have yielded breakthroughs in strategic high technologies and advanced industries, substantially elevating China’s overall technological level. Second, to become a manufacturing power, it has shifted from quantity to quality by cultivating several world-class advanced-manufacturing clusters, nurturing emerging equipment-manufacturing hubs and advancing high-end, intelligent production – thereby creating strategically integrated, system-wide industrial chains and boosting their competitiveness. Third, the digital-economy strategy has embraced the digital revolution as the decisive arena for future international competition, integrating the digital and real economies and using digital technologies to upgrade traditional industries. Fourth, the coordinated-regional-development strategy has implemented major regional plans, refined functional-zoning policies and advanced new urbanization to optimize the distribution of key productive forces, thereby building a regional industrial layout and territorial system that feature complementary strengths and high-quality development. Fifth, the Belt and Road Initiative has focused on promoting infrastructure and connectivity, aligning partner countries’ policies and development strategies, deepening practical cooperation and coordinated development and achieving common prosperity. This helps China’s surplus industrial capacity find new overseas markets and enables BRI partner countries to accelerate infrastructure construction, delivering mutual benefits and win-win outcomes.

Amid the ongoing wave of the Fourth Industrial Revolution, the global political and economic landscape is experiencing profound transformations. To gain a competitive advantage and excel in the international arena, China must expedite the development of NQPFs, foster the emergence of new industries, models and new drivers of growth and pursue a path of industrial modernization with Chinese characteristics. The success or failure of this Chinese industrial modernization hinges on hinges on four key capabilities: taking the lead in mastering and applying the new technologies of the Fourth Industrial Revolution, guiding the development of strategic emerging industries within this transformative period, establishing a mode of production characterized by “socialized collaborative intelligent manufacturing” and building a comprehensive, efficient and scientifically sound intelligent manufacturing industrial system. China’s industrial modernization has entered a critical stage, demanding systematic planning and forward-looking layout. Accelerating the cultivation of NQPFs should be prioritized. China must take the lead in mastering and applying original and disruptive technologies arising from the Fourth Industrial Revolution, strive to assume a leading role in the development of strategic emerging industries, foster personalized, networked and intelligent mode of production and establish a comprehensive and resilient industrial system that provide strong impetus and support for the country’s high-quality development.

“Innovation is the primary driving force for a nation and a people's development, as well as an essential driver of progress for human society as a whole. Those countries that advance in innovation will seize the initiative in leading global development” (Xi, 2022, p. 104). Since the dawn of the 21st century, global scientific and technological innovation has entered an unprecedented era of vigorous advancement, during which science and technology have played a more profound role than ever before in shaping the nation’s development trajectory and the welfare of its population. In March 2024, during his inspection tour in Hunan, President Xi Jinping emphasized, “Scientific and technological innovation is the core element for developing NQPFs. Greater efforts should be made to lead industrial innovation with scientific and technological innovation, proactively connect with national strategic scientific and technological forces, actively introduce first-class research and development institutions at home and abroad, and enhance independent innovation capabilities in key areas” (People's Daily, 2024a). In today’s global landscape, scientific and technological innovation has emerged as a central arena for international strategic competition. Nations that secure a leading position in this technological competition are poised to gain a significant advantage in the Fourth Industrial Revolution, positioning themselves as frontrunners in the new industrial era. China has transitioned toward a phase of high-quality development and has entered a critical stage in advancing industrial modernization. At this pivotal moment, robust scientific and technological innovation capabilities are essential and innovation must be prioritized more than ever as the primary driving force for progress.

Implementing an innovation-driven development strategy and increasing investment in scientific research and innovation serve as fundamental measures to resolve the deep-seated contradictions and problems in economic development and enhance China’s endogenous momentum and vitality; act as the key pathway to overcoming technological blockades and isolation imposed by the United States (US) and Western countries, thereby strengthening China’s industrial competitiveness and stand as a pivotal guarantee for China to secure a leading position in the Fourth Industrial Revolution. Scientific and technological innovation is a complex systems engineering endeavor that necessitates maintaining a comprehensive and systematic perspective while effectively identifying and addressing key issues. It should be oriented toward the forefront of global science and technology, the main battlefield of economy, significant national demands and the improvement of public health and well-being. China should strive to improve the national system for scientific and technological innovation and reinforce the new nationwide system. This involves optimizing the allocation of innovative resources and cultivating a strategic team of scientists and engineers who meet national standards, earn international recognition and exert discourse power. The country must establish a batch of cutting-edge, leading and platform-based national laboratories, expedite the implementation of strategic, systemic and forward-looking major national scientific and technological projects and actively advance the national major scientific and technological projects to address critical “bottleneck” technological challenges urgently. It is essential to recognize that self-reliance and self-strengthening in science and technology serve as a strategic pillar for national development and a crucial pathway to achieving industrial modernization.

To gain a dominant position in the wave of the Fourth Industrial Revolution, it is imperative to vigorously develop strategic emerging industries. Technological competition ultimately translates into industrial competition and the role of NQPFs in driving economic transformation can only be realized through industrial transformation. “Strategic emerging industries represent the direction of the new round of scientific and technological revolution and industrial change, and are the key areas for cultivating new kinetic energy for development and gaining new competitive advantages in the future. They possess a pioneering and supporting nature” (Xi, 2022, pp. 118–119). China should prioritize the cultivation of dominant industries characterized by core competitiveness while actively promoting strategic emerging industries that feature advanced technological capabilities, strong market competitiveness, significant driving effects, high economic value and promising developmental prospects. These industries should embody high-tech attributes, operational efficiency and superior quality, aligning with the new development philosophy and reflecting an advanced level of productive forces. Currently, China is actively promoting the vigorous development of strategic emerging industries, including intelligent robotics, biotechnology, new energy sources, advanced materials, high-end manufacturing equipment, new energy vehicles, green environmental technologies, aerospace and marine engineering equipment. These sectors are expected to serve as key drivers for future economic growth. Simultaneously, the country is accelerating the construction of new-type infrastructure, such as 5G networks, data centers, AI platforms, industrial Internet systems and IoT networks. This initiative aims to establish a next-generation information infrastructure that is efficient, mobile, secure and universally accessible. Such infrastructure will enable the Internet of Everything, human–machine collaboration and a space–earth integration network, thereby laying a solid foundation for personalized, digital, networked and intelligent production methods. The Fourth Industrial Revolution represents a transformative advancement driven by intelligent manufacturing, which will significantly influence the future trajectory of nations globally. Therefore, China should prioritize scientific and technological innovation, industry development, infrastructure construction and talent cultivation in the field of intelligent manufacturing to prepare for the realization of Chinese industrial modernization.

The evolution of NQPFs will inevitably result in a qualitative transformation of modes of production; conversely, new modes of production will enable the full realization of the potential embedded in NQPFs. Historically, each industrial revolution has triggered profound changes in human modes of production, significantly enhanced productivity, expanded economic activities to an unprecedented scale and fundamentally transformed people's lifestyles. The Fourth Industrial Revolution, characterized by advancements in AI, big data analytics and the widespread application of the IoT, is leading humanity into an era defined by personalized, networked and intelligent production. This transformative revolution is poised to fundamentally revolutionize traditional manufacturing processes, significantly alter the ways people innovate knowledge and technologies and ultimately enable a fully integrated smart lifestyle for individuals. Technological revolutions serve as the precursor and foundation for industrial revolutions. Prior to each industrial revolution, major changes and progress must occur within the realm of technology, providing the necessary support and infrastructure for the emergence of new modes of production. With the rapid development and maturation of next-generation information and communication technologies – such as mobile Internet, social media, IoT and cloud computing – the 4IR has begun to unfold, bringing about a profound transformation in contemporary production methods. Cyber physical systems (CPS) serve as a core technological foundation for the Fourth Industrial Revolution (Wei, 2015, p. 4). By leveraging CPS, production factors can be allocated in a networked and intelligent manner, while product development and manufacturing modes can become personalized and intelligent. This transformation gives rise to new forms of production organization and innovative business models, ultimately enabling “socialized, collaborative, and intelligent manufacturing,” a revolutionary mode of production. Under this model, manufacturing will achieve comprehensive intelligence, with all aspects of factory operations, including production workflows, product design, technological R&D and user services, integrated into a unified intelligent network. This intelligent network can autonomously adjust production processes based on data and automatically resolve mechanical failures, thereby enabling the most efficient mode of production to produce diversified and personalized customized products. Personalized customization is expected to become the mainstream trend in the consumer market, as products are designed and manufactured according to individual consumer preferences. Through virtual visualization technology, consumers can monitor the entire process of design, production, installation and delivery, experiencing a heightened level of satisfaction and comfort in their consumption. Undoubtedly, in this industrial revolution driven by intelligent manufacturing, those who take the lead to complete the intelligent transformation of their industrial systems and establish an innovative mode of production will hold sway as leaders in the new industrial era.

Developing NQPFs is a systemic project that necessitates the establishment of a comprehensive and integrated industrial system. On March 5, 2024, President Xi Jinping emphasized during his deliberation in the Jiangsu delegation the need to firmly focus on the primary task of high-quality development and develop NQPFs according to local conditions. “Facing the latest round of scientific and technological revolutions and industrial transformations, we must seize opportunities and step up efforts to make innovations, he said. We must also cultivate and strengthen emerging industries, plan for the future industrial development, and enhance the modern industrial system” (People's Daily, 2024b). Since the Reform and Opening-up, China has created a world miracle of rapid economic development, with its manufacturing sector ranking first in the world in scale. “With the output of over 220 types of industrial products ranking first globally, China has become the only country in the world to have all the industrial categories listed in the United Nations industrial classification” (Xi, 2022, p. 115). Overall, China’s manufacturing sector remains characterized by scale without corresponding strength, suffering from an irrational industrial structure, inadequate integration, collaboration and optimization capabilities within the industrial chain, limited product innovation capacity and a relatively low level of informatization.

To secure a place in the wave of the 4IR, China must accelerate the process of shifting from the low end to the medium and high end of the manufacturing value chain, from a manufacturing giant to a manufacturing power and from “Made in China” to “Created in China;” speed up the digital, networked and intelligent transformation and upgrading of traditional manufacturing industries and accelerate the shift from the traditional production concept of standardization and large-scale production to the smart manufacturing concept of personalization, flexibility, servitization, greenization and collaboration. Meanwhile, China must achieve significant breakthroughs in core technologies related to the IoT, cloud computing, big data and other relevant fields and foster clusters of emerging industries with substantial growth potential. The country is committed to a strategic philosophy that centers on innovation-driven development, efficiency-based competitive advantage, green manufacturing transformation and the shift toward service-oriented manufacturing. This approach effectively integrates modern information technologies with industrial processes, establishing a dominant development trajectory defined by intelligence, informatization, digitization and automation. This approach aims to propel the transformation of China’s manufacturing sector – from “Made in China” to “Created in China,” from speed-focused production to quality-driven output and from product-centric to brand-oriented development. It is imperative to expedite the intelligent transformation and upgrading of the manufacturing industry, which involves prioritizing the development of intelligent equipment and products, promoting the intelligence of production processes, fostering new production models and substantially enhancing enterprises’ capabilities in research, production, management and services through intelligent technologies. China must also accelerate the green transformation and upgrading of the manufacturing sector by actively adopting low-carbon, circular and intensification practices. This includes improving resource utilization and striving to establish an efficient, clean, low-carbon and circular green manufacturing system. Furthermore, the country should prioritize the development of NQPFs as the core of its industrial chain strategy, enhancing the resilience and security of industrial and supply chains to ensure that the industrial system is independent, controllable, safe and reliable.

Zhang Jiangang, Researcher and Doctoral Supervisor at the Academy of Marxism, Chinese Academy of Social Sciences (CASS).

This article is a phased outcome of the Fundamental Research Project of the Chinese Academy of Social Sciences (CASS) Think Tank, entitled “Research on the Basic Categories, Propositions, and Theoretical Logic of Xi Jinping Economic Thought” (Project No.: 23ZKJC003).