Zhang Hui: Basic Characteristics and Development Directions of a Modernized Industrial System
A modern industrial system is the material and technical foundation of Chinese-path modernization, and its construction provides crucial support for economic modernization. The "Suggestions for the 15th Five-Year Plan" [1] deliberated and adopted by the Fourth Plenary Session of the 20th CPC Central Committee placed "constructing a modern industrial system and consolidating the foundations of the real economy" in a prominent position within the strategic layout. It emphasized adherence to the directions of intelligence, greening, and integration. This not only clarifies the basic characteristics of a modern industrial system but also provides a practical path for building one that is integrated, advanced, and secure. Entering the "15th Five-Year Plan" period, and faced with new situations, tasks, and challenges, an accurate and systematic grasp of the basic characteristics and developmental direction of the modern industrial system—alongside a goal-oriented advancement of its construction—will facilitate the breaking of developmental bottlenecks and the reshaping of competitive advantages. This, in turn, will allow our country to gain the strategic initiative in future development and international competition.
Focusing on Intelligence to Propel the Transition of Growth Drivers
The intelligence of the industrial system is both an inevitable choice for seizing the opportunities of the new round of technological revolution and building a modern industrial system, and a key breakthrough point for advancing the transition between old and new growth drivers. Its essence lies in the deep integration of artificial intelligence (AI) and the real economy, reshaping the allocation of production factors, organizational forms, and business models to achieve a fundamental shift in developmental momentum from factor-driven to innovation-driven growth. Currently, China already possesses a solid foundation and favorable conditions for developing intelligent manufacturing. As a general-purpose technology, AI is profoundly transforming and upgrading traditional industries such as mining, metallurgy, light industry, and textiles, driving the accelerated formation of data-driven production models and significantly improving production efficiency and product quality.
However, we must also recognize that driving the transition of growth drivers through intelligence still faces severe challenges. From the perspective of technical supply, the situation where key core technologies in certain fields remain under the control of others [2] has not been fundamentally altered, and original innovation capabilities need to be strengthened. Regarding application integration, the breadth and depth of "AI Plus" applications need to be expanded; the digital transformation of traditional industries is generally still in its infancy, and there is an insufficient supply of customized, implementable, and low-cost solutions. Furthermore, some small and medium-sized enterprises (SMEs) lack the endogenous motivation to transform. Specifically, they are "unwilling to transform" due to a lack of awareness regarding digital transformation and a lack of fault-tolerance mechanisms or space for trial and error; "afraid to transform" due to doubts about inputs and outputs and unclear expectations of returns on investment; and "unable to transform" due to a lack of funds, technical support, and replicable solutions.
Therefore, "AI Plus" must be advanced as a systemic project. First, reinforce basic research and development in AI. Target the weak links in the foundational and technical layers of AI, organize innovation models such as "open competition to select the best candidates" [3], increase long-term stable investment, improve evaluation and incentive mechanisms for researchers, and build innovation consortia with enterprises as the mainstay and deep integration of industry, academia, and research—all to accelerate technological breakthroughs and the transformation of achievements. Second, deepen the comprehensive empowerment of all sectors through "AI Plus." Extensively tap into and open up application scenarios, cultivate a group of digital solution providers who are deeply rooted in specific industries and proficient in process flows, and develop and promote modular, lightweight, and low-cost digital toolkits. Third, strengthen factor guarantees. Accelerate the cultivation of a unified national data market and promote high-quality supply, sharing, and openness of data factors. Encourage universities to strengthen the establishment of interdisciplinary majors and actively cultivate composite talents with AI literacy. Introduce digital transformation support policies for SMEs, establish matching risk-sharing mechanisms, and deploy a group of digital transformation promotion centers by industry and region. Simultaneously, establish and improve relevant laws, regulations, and standards, and build an ethical and security governance framework to ensure the healthy and orderly development of AI.
Prioritizing Greening to Consolidate the Ecological Foundation
The greening of the industrial system is both a key path to achieving high-quality development and "Dual Carbon" goals [4], and an inherent requirement for responding to climate change, protecting the ecological environment, and achieving harmony between humanity and nature. Since the 18th National Congress of the CPC, China has unswervingly implemented the New Development Philosophy, adhered to a path of prioritizing ecology and pursuing green and low-carbon development, vigorously developed clean energy, and accelerated the innovation and application of green technologies. China has constructed the world's most systematic and complete policy system for carbon reduction, built the world's largest and fastest-growing renewable energy system, and formed the world's largest and most complete new energy industrial chain. These factors are profoundly changing China's energy structure, industrial ecosystem, and economic growth drivers.
Taking the new energy vehicle (NEV) industry as an example: in 2024, China's production and sales of NEVs both exceeded 12 million units, and exports of electric vehicles surpassed 2 million units for the first time. Green products and technical standards are going global, reshaping the international competitive landscape. This is not merely the result of market selection; it manifests the strong endogenous power of green transformation. The development of the NEV industry provides a clear practical path for building a green, low-carbon industrial system. At the level of technological drivers, the continuous iteration of green technologies directly drives a revolutionary leap in energy storage and utilization efficiency. At the market-leading level, the rapid jump in market penetration has profoundly changed the energy consumption structure of transportation—a major carbon-emitting sector—leading the green transformation of the entire automotive industry. In terms of full-chain restructuring, China has formed a comprehensive industrial chain covering raw material supply, battery production, vehicle manufacturing, and charging infrastructure, building a closed-loop ecosystem "from green manufacturing to green operation to circular recycling," with immense industrial linkage effects.
Looking ahead, the green transformation of the industrial system still faces difficulties and problems: the green resilience of industrial and supply chains needs to be strengthened, the security of key raw material supplies is insufficient, and regulatory systems and application mechanisms for product carbon footprints are lacking. These require further resolution. First, we must strengthen research on key core technologies, proactively layout green technologies, and utilize AI to empower the synergistic development of digitalization and greening. Second, we must strengthen green management throughout the entire product life cycle and formulate unified standards for carbon footprint accounting. Third, we must deepen coordination across sectors such as energy, transportation, and industry, improve market-based incentive and constraint mechanisms, and explore the use of the national carbon market to help realize the green value of products. Through policy guidance, technological innovation, and market promotion, the concept of greening should be deeply integrated into the "DNA" of all industries. This will build a new engine for green growth, forge new advantages in green competition, refine the ecological background of new-type industrialization, and lay a solid ecological foundation for high-quality economic development, ultimately leading a comprehensive green transformation of economic and social development at a higher level.
Adhering to Integration to Enhance Overall Efficiency
The integrated development of the industrial system is a salient characteristic and developmental trend of a modern industrial system. Important aspects of this include promoting the deep integration of the primary, secondary, and tertiary industries; the deep integration of technological innovation and industrial innovation; and the deep integration of the real economy and the digital economy. Through integrated development, industrial boundaries, technical barriers, and obstacles to factor mobility can be broken, achieving "dual-wheel driving" via the improvement of incremental quality and the renewal of existing stock, thereby continuously enhancing the overall efficiency of the industrial system.
Promoting the transformation of manufacturing toward services is a key measure for China's leap from a large manufacturing nation to a manufacturing power. In recent years, the level of service-oriented manufacturing in China has continued to rise, but competitive advantages on the service side remain insufficiently strong, which to some extent restricts manufacturing from climbing toward the two ends of the "smile curve" [5]. To this end, we should consider vigorously developing producer services, promoting their deep integration with advanced manufacturing, and relying on digital technology to empower manufacturing enterprises in links such as R&D design, brand marketing, and after-sales service. At the same time, we must cultivate innovative productive financial services and guide financial resources toward manufacturing to prevent the economy from "diverging from the real to the virtual" (脱实向虚).
As the new round of technological revolution and industrial transformation evolves, seizing opportunities in scientific innovation and focusing on the integration of technology with industry, and the real economy with the digital economy, has become the path of choice for cultivating new quality productive forces and winning new advantages in major-power competition. In this process, we must emphasize both the optimization of traditional industries and the cultivation of emerging and future industries. On one hand, China's traditional industries are massive, with main indicators such as value-added and employment accounting for about 80% of all manufacturing; they are the bedrock of China's real economy. Recently, China has utilized digital technologies like AI to transform traditional industries, significantly improving production efficiency and substantially reducing energy/material consumption and defect rates, allowing these sectors to radiate new vitality. On the other hand, emerging and future industries are important frontiers for cultivating new quality productive forces. Currently, the leading role of emerging industries is increasingly evident, with significant advantages already formed in frontier fields such as AI, new energy, and bio-manufacturing. Furthermore, in the digital industry sector, the generative AI industry has seen explosive growth, proving the immense potential of digital technological innovation in driving industrial innovation. The digital economy is constantly opening new fields and "tracks," shaping new drivers and advantages.
At present, China still faces many challenges in promoting the integration of technology and industry, as well as the real and digital economies. Regarding technological innovation, the situation of being reliant on others for key core technologies persists, and the overall level of innovation is not yet high enough. Regarding the development of the digital economy, the number of new "unicorn" enterprises is still insufficient, and the output scale of leading enterprises has fluctuated in recent years. Regarding the real economy itself, compared with some developed countries, the efficiency of China's emerging industries is not yet high enough, and the intensity of innovation investment in some traditional industries remains low. To address this, we must persist in "walking on two legs." On one hand, we must take unconventional measures to promote breakthroughs in key core technologies in priority areas and vigorously cultivate innovative enterprises in the digital economy to provide high-quality technical supply for the growth of the real economy. On the other hand, we must deepen the integration of technology, business, and markets, and vigorously promote the transformation of scientific achievements into tangible productive forces. Through the efficient flow and allocation of innovation resources between incremental and existing stocks, we can achieve the vanguard positioning of emerging industries and the restorative renewal of traditional industries, forming an industrial ecosystem where "old trees grow new shoots" and "new trees take deep root."
Continuously Strengthening Integrity, Advancedness, and Security
Building upon the coordinated advancement of intelligent empowerment, green transformation, and integrated development, the final objective is to achieve a qualitative leap in the industrial system as a whole, constructing a modern industrial system that meets the criteria of being integrated, advanced, and secure. These are the important benchmarks for measuring its maturity. Integrity (integrity/completeness) is the foundation; by relying on the advantages of China's ultra-large-scale market, we must maintain and enhance the advantages of a complete industrial system and strong supporting capabilities to ensure the stability of the overall economy. Advancedness is the key; through continuous innovation in technology, processes, and models, we must constantly improve industrial added value, labor productivity, and international competitiveness. Security is the bottom line; by focusing on the key links and core areas of industrial and supply chains, we must enhance resilience against shocks, risks, and disruptions to ensure the smooth circulation of the national economy. These three are interdependent and mutually reinforcing: integrity provides a vast hinterland and supporting strength for advancedness and security; advancedness provides the impetus for improving the quality of integrity and the level of security; and security provides the safeguard for the sustainable development of integrity and advancedness.
Currently, global industrial and supply chains are accelerating their restructuring, and China's development has entered a critical stage of transitioning growth drivers and deep structural adjustment. On the road to becoming a manufacturing power, many challenges remain, including "bottlenecks" and "blockages" in key links of the industrial chain, the vulnerability of supply chain stability to external shocks like geopolitics or emergencies, and the arduous task of green and low-carbon transformation across the entire chain. To this end, within the framework of intelligence, greening, and integration, we must focus on the following directions. First, rely on intelligence and integration to improve the modernization and advancedness of the industrial chain. Implement industrial foundation reengineering projects and major technical equipment breakthrough projects to overcome bottlenecks. Utilize the Industrial Internet and 5G to build data-driven industrial internet platforms and create resilient, intelligent, and transparent supply chain networks. Second, weave greening and integration throughout the system to promote deep optimization of industrial structure and security resilience. Use technology like AI and the Internet of Things (IoT) to build circular industrial chains from green procurement and low-carbon production to product recycling. Optimize industrial layout, promote the orderly transfer of key industries within the country, and systematically improve the resilience of industrial and supply chains. In this process, we should adhere to a "systems thinking" approach, working across scientific innovation, industrial policy, institutional mechanisms, and opening up. By coordinating development and security and balancing the present with the long term, we will ultimately achieve a systemic transformation of the industrial system's quality, efficiency, and momentum, laying a solid material and technical foundation for the comprehensive buildup of a great modern socialist country.