Zhao Changwen: Accurately Grasping the Theoretical Connotations and Practical Requirements of Building a Modern Industrial System
General Secretary Xi Jinping has pointed out: "During the 15th Five-Year Plan period [1], we must place the development of new quality productive forces in accordance with local conditions in a more prominent strategic position. We must take scientific and technological innovation as the lead and the real economy as the foundation. We must persist in simultaneously promoting the transformation and upgrading of traditional industries, actively developing emerging industries, and planning ahead for future industries, so as to accelerate the construction of a modern industrial system." The Suggestions of the CPC Central Committee on the Formulation of the 15th Five-Year Plan for National Economic and Social Development (hereinafter referred to as the "Suggestions"), adopted at the Fourth Plenary Session of the 20th CPC Central Committee [2], made comprehensive arrangements for economic and social development during the 15th Five-Year Plan period. Within this framework, "building a modern industrial system and consolidating and strengthening the foundation of the real economy" was placed in the first section of the specific expositions. A modern industrial system is the material and technical foundation of a modern country and an important component of a modern economic system. To deeply study and implement the spirit of General Secretary Xi Jinping’s important speeches and the spirit of the Fourth Plenary Session of the 20th CPC Central Committee, we must derive a profound understanding of the rich connotations, significant achievements, and primary tasks of the modern industrial system, and continuously solidify the material foundation of Chinese-path modernization.
The Construction of a Modern Industrial System Possesses Rich Theoretical Connotations
General Secretary Xi Jinping has pointed out: "Industry is the foundation of the economy." Productive forces are the fundamental driving force for the development of human society, and industry is the important carrier and form of expression of those productive forces. Only by continuously promoting industrial development can a country support its economic growth, employment, and social stability. The history of the rise of great powers in modern times is also a history of industrial revolutions leading industrial development, which in turn promoted economic development.
An industrial system is an organic system composed of various industrial sectors and various enterprises within a certain region, involving multiple factors such as the government, the market, and enterprises. These factors interact and jointly influence industrial development and operation. A sound and efficient industrial system can not only promote stable economic growth but also enhance a country's comprehensive competitiveness. From the perspective of international comparison, countries with more modern industrial systems tend to occupy more favorable positions and obtain greater competitive advantages.
Industrial systems continuously develop and change along with the development of productive forces and scientific and technological progress. Driven by technological progress and market demand, new industries constantly emerge, while old industries gradually decline or undergo transformation and upgrading. The modernization of the industrial system is the core and important driving force of economic modernization. Building a modern industrial system requires timely adjustments to industrial structures and development strategies in line with the processes of economic and technological modernization. This involves promoting the transformation and upgrading of traditional industries, accelerating the development of emerging industries, and fostering the continuous sprouting of future industries, thereby using industrial modernization to boost technological and economic modernization. In this sense, the modernization of the industrial system is the power source for the continuous promotion of economic modernization and, to a large extent, determines the level of a country's modernization.
Since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has profoundly grasped the general trend of the new round of technological revolution and industrial transformation. Adapting to new trends in global industrial development and comprehensively analyzing the opportunities and challenges facing China's development at present and for a period to come, the Committee proposed the concept of a modern industrial system and has continuously enriched and developed it in practice. General Secretary Xi Jinping has delivered a series of important expositions surrounding the modern industrial system. For example, during the second collective study session of the Political Bureau of the 20th CPC Central Committee, he emphasized that "the new development pattern is based on a modern industrial system, and the smooth circulation of the economy requires the orderly linking and efficient flow of various industries," requiring the creation of an independent, controllable, secure, reliable, and highly competitive modern industrial system. During his inspection in Guangdong in 2023, he emphasized "placing greater importance on developing the real economy, accelerating industrial transformation and upgrading, promoting the advancement of the industrial base and the modernization of industrial chains, developing strategic emerging industries, and building a modern industrial system with greater international competitiveness." At the first meeting of the Central Financial and Economic Commission of the 20th CPC Central Committee, he emphasized that "a modern industrial system is the material and technical foundation of a modern state; the focus of economic development must be placed on the real economy to provide strong material support for the realization of the Second Centenary Goal [3]." During the 2024 Two Sessions [4], he emphasized: "Faced with a new round of technological revolution and industrial transformation, we must seize opportunities, increase innovation efforts, cultivate and strengthen emerging industries, plan ahead for future industries, and improve the modern industrial system," and so on. These important expositions provide the fundamental guidelines for accelerating the construction of a modern industrial system.
In general, the modern industrial system both follows the general laws of modern industrial development and conforms to the essential requirements of Chinese-path modernization; it is an industrial system adapted to the needs of Chinese-path modernization. It is not a simple combination of several industrial categories, but a complex system with internal organic links and complementary functions. It is the key to carrying and manifesting national competitiveness and the basis for great power competition, possessing rich theoretical connotations.
An industrial system that meets the requirements of the new round of technological revolution and industrial transformation. Historical experience shows that every technological revolution and industrial transformation drives a qualitative leap in productive forces, having a major impact on human production and lifestyles, as well as the process of economic and social development. It can be said that technological revolutions, especially revolutions in technique, are the precursors to industrial revolutions, and industrial revolutions are the result of technological revolutions. Currently, as changes unseen in a century accelerate, the technological revolution and great power competition are interwoven. High-tech fields have become the front line and main battlefield of international competition, profoundly reshaping the global order and development landscape. In the coming period, the new round of technological revolution and industrial transformation, represented by artificial intelligence and big data, will continue to accelerate. In fierce international competition, if we are to open up new fields and tracks for development and shape new momentum and advantages, we must profoundly understand the inherent laws of technological innovation and industrial system construction, seize the historical opportunities of the new round of technological revolution and industrial transformation, and accelerate the construction of a modern industrial system.
An industrial system led by the new development philosophy. The new development philosophy [5] is strategic, programmatic, and leading; it is the guide for building a modern industrial system. Specifically, the modern industrial system is the foundation for accelerating the transition between old and new growth drivers and achieving high-quality development. It requires the leadership of the philosophy of innovative development to accelerate the achievement of high-level scientific and technological self-reliance and strength, relying on technological innovation to develop new quality productive forces. The modern industrial system is a complex economic system composed of factors of production such as labor, capital, and technology. It involves the structure of agriculture, industry, and services; the relationship between future industries, emerging industries, and traditional industries; and the geographical carrying capacity and regional layout of these production factors. This requires the leadership of the philosophy of coordinated development, striving to achieve the efficient flow, optimized allocation, rational layout, and coordinated development of various production factors. The construction of a modern industrial system is a systemic and holistic transformation of production factors, modes of production, and the resources and environment. It requires the leadership of the philosophy of green development to promote the green development of industries and help promote the harmonious coexistence of man and nature. The modern industrial system is an industrial system built on the basis of China's ultra-large-scale market and high-level opening-up. It requires the leadership of the philosophy of open development to promote the deep participation of China's industries in the global industrial division of labor and cooperation. The modern industrial system is one that can benefit all people more extensively and fairly and contribute to the realization of the goal of common prosperity. It requires the leadership of the philosophy of shared development to handle the relationship between equity and efficiency, and between industrial upgrading and stable employment. It seeks to maximize the wealth-creation effects of digital technologies such as AI and big data while preventing problems such as employment substitution, income polarization, and the digital divide that may arise therefrom, achieving dynamically stable high-quality employment and rising income levels during the upgrading of the industrial structure.
An industrial system supported by the real economy. The real economy is the foundation of a country's economy and an important pillar of national strength. China is a large country, and the real economy is the capital for our development. In the past, China relied on a strong real economy to create the "two miracles" of rapid economic development and long-term social stability. Today, to continue writing new chapters of these two miracles and strive to create a new situation for the construction of Chinese-path modernization, we need to pay more attention to consolidating and developing the real economy. In building a modern industrial system, we must persist in placing the focus of economic development on the real economy, unswervingly follow the path of new-type industrialization with Chinese characteristics, promote the advancement of the industrial base and the modernization of industrial chains, and accelerate the construction of China into a manufacturer of quality, a leader in quality, and a power in aerospace, transportation, and cyberspace. We must maintain a reasonable proportion of manufacturing and build a modern industrial system with advanced manufacturing as the backbone to provide strong material and technical support for the realization of the Second Centenary Goal.
An industrial system that coordinates development and security. Development and security are like the two wheels of a cart or the two wings of a bird; neither can be neglected. To build a modern industrial system, we must first base ourselves on promoting high-quality development through open cooperation, continuously solidifying the material foundation for ensuring security. At the same time, certain countries currently pursue unilateralism and protectionism, which not only affects China's industrial upgrading but also significantly increases the urgency for us to safeguard national economic, technological, and defense security. In this sense, accelerating the construction of an independent, controllable, secure, reliable, and highly competitive modern industrial system means insisting on placing the development of the country and the nation on the basis of our own strength, firmly grasping the initiative of our country's development, and responding to the instability and uncertainty of the external environment with the stability and certainty of our own high-quality development.
An industrial system manifesting integrity, advancedness, and security. The first meeting of the Central Financial and Economic Commission of the 20th CPC Central Committee made arrangements for accelerating the construction of a modern industrial system, emphasizing "building a modern industrial system that is integrated, advanced, and secure." An integrated modern industrial system is mainly reflected in the fact that China has built the world's most complete and largest-scale industrial system. This industrial system is massive in scale, rich in levels, diverse in supply and demand, active in innovation, and possesses strong driving force; it continues to strengthen as China's new-type industrialization progresses in depth. An advanced modern industrial system is mainly characterized by the continuous innovation of technical paradigms and business models, rapid structural changes, and the continuous improvement of development quality. At the same time, it follows the laws of global industrial development, continuously upgrading, dynamically optimizing, and moving forward through a process of seeking progress while maintaining stability and step-by-step advancement. To build a secure modern industrial system, we should give full play to the demand advantages of China's ultra-large-scale market, build a highly resilient industrial and supply chain system that is centered on our own needs, and take the continuous satisfaction of the people’s growing needs for a better life as the ultimate goal. Simultaneously, we must deeply integrate into economic globalization and implement global division of labor and cooperation in terms of resources and factors according to comparative advantages. The construction of a modern industrial system is a process that advances with the times and is full of vitality. We must unify integrity, advancedness, and security, and promote them coordinately toward the directions of being smart, green, and integrated. With the development of new quality productive forces as an important focus, we must continuously improve the industrial system, strive to build a batch of new growth engines, and enhance the resilience and safety level of industrial and supply chains, providing support for winning the strategic initiative in future development and international competition.
Important Progress Has Been Made in the Construction of China's Modern Industrial System in the New Era
General Secretary Xi Jinping has pointed out: "China has the world's most complete industrial system and the domestic market with the greatest potential. We must effectively enhance the resilience and security of industrial and supply chains, making up for weaknesses while strengthening our advantages." Since the 18th CPC National Congress, and through the continuous development during the 12th, 13th, and 14th Five-Year Plan periods, China has solidly promoted new-type industrialization, fostered the deep integration of scientific and technological innovation with industrial innovation, and made important progress in the construction of a modern industrial system.
A larger industrial scale, a more complete industrial system, and stronger industrial supporting capabilities have been formed. Industrial scale and industrial systems are the basic support for the internal circulation and endogenous sustainable development of a large-scale economy. In 2024, China's manufacturing added value accounted for nearly 30% of the global total, ranking first in the world for more than 10 consecutive years. In 2024, China's total industrial added value reached 40.5 trillion yuan. Among the world's 500 major industrial products, China ranks first in the production of more than 220. China produces more than 70% of the global supply of lithium batteries and photovoltaic modules, and more than 60% of new energy vehicles and wind power equipment. At the same time, China's industrial supporting infrastructure leads the world. For example, it possesses the world's most complete logistics infrastructure, having built the world's largest high-speed railway network, expressway network, postal express network, and world-class port clusters. It has the world's largest information and communication network, ranking first globally in indicators such as the number of 5G base stations opened, the number of mobile phone users, and the scale of fixed broadband networks, and ranking second in the world in the scale of computing power. This further amplifies the cost and efficiency advantages of "Made in China."
The industrial structure has been further optimized, and industrial intelligence, greening, and integration have accelerated. Industrial structural adjustment is an important driving force for promoting sustained economic growth and achieving high-quality development. From a macroeconomic perspective...
From 2010 to 2024, the structure of China's three strata of industry shifted from 10.2:46.8:43.0 to 6.8:36.5:56.7. The added value of equipment manufacturing and high-tech manufacturing as a proportion of the added value of industrial enterprises above designated size [6] rose from 29.6% and 8.9% to 34.6% and 16.3%, respectively, indicating a significant trend in industrial structure upgrading. In 2024, the added value of the "Three New" economy [7] accounted for over 18% of GDP. From a micro perspective, the number of national high-tech enterprises grew from 32,000 to 463,000 between 2010 and 2024. By the end of 2024, China had cultivated over 140,000 "specialized, refined, differential, and innovative" (SRDI) SMEs, 14,600 "little giant" SRDI enterprises, and 1,557 "individual champion" enterprises in manufacturing. Regarding industrial intelligence, China leads the world in the level and scale of intelligent manufacturing technology and application. By the end of 2024, it had cultivated 421 national-level intelligent manufacturing demonstration factories, over 10,000 provincial-level digital workshops and smart factories, and more than 4,500 artificial intelligence enterprises. Regarding industrial greening, the construction of green factories and green industrial parks has continued, accelerating the development of green and low-carbon industrial chains. Compared to 2012, energy consumption, water consumption, and carbon emission intensity per unit of GDP in 2023 decreased by more than 26%, 46%, and 35%, respectively. Regarding industrial integration, the deep integration of modern service industries with advanced manufacturing and modern agriculture has been actively promoted. The proportion of the service industry as an intermediate input continues to rise, and new business forms and models of integrated development are constantly emerging. Producer services, represented by industrial design, R&D service outsourcing, and supply chain management, are flourishing.
The foundation of industrial security continues to be consolidated, and the ability to resist risks in key areas has been significantly enhanced. Industrial security is vital to the national economy and people's livelihoods; it provides crucial support for economic security and is an important manifestation of the quality of a country's economic development. Through years of continuous effort, China's self-sufficiency rates for grain and energy have remained above 95% and 80%, respectively. Under the new-type whole-nation system, by strengthening, supplementing, and stabilizing industrial chains, China has continued to tackle "chokepoint" [8] key technologies in fields such as chips and aerospace, steadily improving the level of independent controllability in key industrial chains. In emerging industries and future industries such as artificial intelligence and robotics, China is at the global forefront. A group of scientific and technological innovation enterprises, represented by DeepSeek and Unitree Robotics, are leading technological and industrial transformations, becoming key forces in safeguarding China's future economic security.
At the same time, we must remain soberly aware that the construction of a modern industrial system still faces many deep-seated contradictions and challenges. From the perspective of basic industrial capacity, China's capacity for original innovation is insufficient, and technology gaps remain in some key industrial fields. In particular, the degree of dependence on core products such as high-end chips and industrial software remains relatively high, and the risk of being "choked" still exists. From the perspective of industrial structure, although the proportion of producer services in China has risen rapidly over the past period, a large gap remains compared to developed countries. This highlights problems such as the low development level of modern services like high-end R&D design and brand management, as well as insufficient integration with manufacturing. From the perspective of industrial performance, the problems of insufficient value-added creation in some of China's industries and the weak profitability of enterprises are prominent. Many traditional industries remain at the bottom of the "smiling curve" [9] and have long stayed at medium-to-low levels in various indicators such as the industrial value-added rate, industrial value-added per capita, and corporate profit margins. There is an urgent need to climb toward the upper reaches of the value chain.
Accelerating the construction of a modern industrial system to provide strong material support for achieving the Second Centenary Goal
The "15th Five-Year Plan" period (2026–2030) is a critical period for laying a solid foundation and exerting full force to basically achieve socialist modernization; it occupies an important position as a bridge between the past and the future in this process. The "Suggestions" of the Fourth Plenary Session of the 20th CPC Central Committee [10] made comprehensive arrangements for "building a modern industrial system and consolidating and expanding the foundations of the real economy," proposing priority tasks in four areas.
First, optimizing and upgrading traditional industries. Traditional industries are the "stock" and constitute the current "basic plate" of China's industrial system. The "Suggestions" propose measures to promote the quality improvement and upgrading of key industries; consolidate and enhance the status and competitiveness of industries such as mining, metallurgy, chemicals, light industry, textiles, machinery, shipbuilding, and construction in the global industrial division of labor; and develop advanced manufacturing clusters. During the "15th Five-Year Plan" period, we must avoid treating traditional industries as synonymous with "low-end and backward" and implementing "one-size-fits-all" exits. Efforts should focus on promoting intelligent, green, and integrated transformations and establishing classified development mechanisms.
Second, cultivating and expanding emerging industries and future industries. Emerging and future industries are the "increment" and the new engine leading the construction of a modern industrial system. The "Suggestions" propose focusing on creating emerging pillar industries; accelerating the development of strategic emerging industrial clusters such as new energy, new materials, aerospace, and the low-altitude economy; and forward-looking layout of future industries, promoting quantum technology, biomanufacturing, hydrogen energy and nuclear fusion energy, brain-computer interfaces, embodied intelligence, and 6G mobile communications to become new economic growth points. During the "15th Five-Year Plan" period, we must focus on innovation in key core technologies, make good use of China's ultra-large-scale market and human capital resources, cultivate and promote the development of emerging pillar industries and future industries, and avoid low-level redundant construction and disorderly expansion.
Third, promoting the high-quality and efficient development of the service industry. Currently, there is still huge room for the expansion and quality improvement of China's service industry. The "Suggestions" propose measures such as implementing actions to expand the capacity and improve the quality of the service industry and increasing the level of integrated development between modern services and advanced manufacturing and modern agriculture. During the "15th Five-Year Plan" period, we must deepen our understanding of the laws governing the development of the producer service industry, manage producer services with the same intensity as manufacturing, expand high-level opening up in the service sector, and promote the high-quality development of producer services.
Fourth, constructing a modern infrastructure system. China already possesses the world's largest infrastructure networks for high-speed railways, expressways, ports, postal express delivery, electricity, and broadband. The "Suggestions" propose measures such as strengthening the overall planning of infrastructure, constructing new-type infrastructure with moderate anticipation, and improving the modern comprehensive transportation system. During the "15th Five-Year Plan" period, more importance must be attached to building major scientific and technological infrastructure clusters that support original innovation and cross-border transportation infrastructure that connects internally and externally with multi-dimensional synergy.
Building a modern industrial system and achieving the priority tasks in the four areas mentioned above requires adhering to systems thinking and exerting coordinated force across the market system, key technologies, financial capital, and final demand.
Promote the construction of a strong domestic market and accelerate the construction of a high-level socialist market economy system. To accelerate the construction of a modern industrial system, we must promote the better combination of an efficient market and a capable government; the current priority task is to promote the construction of a strong domestic market. China's ultra-large-scale domestic market can reduce corporate operating costs and institutional transaction costs, providing demand support for technological innovation and industrial upgrading. Building a strong domestic market, by breaking down regional fragmentation and market barriers, can promote the efficient and free flow of productive forces such as capital, technology, talent, and data on a larger scale, providing a basis for the efficient allocation of resources for the construction of a modern industrial system. To this end, we must accelerate the construction of a high-level socialist market economy system, improve the systems and mechanisms for the market-based allocation of factors, remove "bottlenecks" and "blockages" hindering the construction of a unified national market, and enhance the effectiveness of macroeconomic governance. We must comprehensively rectify "involuted" [11] competition; resolutely regularize improper intervention behaviors such as various forms of local protectionism and market fragmentation; and clean up and rectify problems in various regions that violate fair competition in areas such as market access and exit, industrial development, investment promotion, bidding and tendering, government procurement, and qualification standards, guiding the orderly exit of backward production capacity. We should improve the management model for the negative list of market access, optimize the market access environment for new business forms and fields, enhance the vertical mobility of enterprises, and fully stimulate the vitality of all types of business entities.
Give full play to the advantages of the new-type whole-nation system and focus on tackling key core technologies. Technological progress is the core driving force of industrial upgrading. From the perspective of the laws of technological and industrial development, the paradigm of technological progress and the logic of industrial upgrading differ at different stages of a country's economic development. As China's technological and industrial levels grow closer to the global frontier, we must strengthen original innovation and accelerate the realization of high-level sci-tech self-reliance and self-strengthening. We must leverage the advantages of the new-type whole-nation system and focus on solving the problems of "what to do" and "what not to do." It should be recognized that what needs to be promoted by leveraging the advantages of the new-type whole-nation system should not be general technological innovation, but rather major innovations that are strategic, long-term, and forward-looking—those key core technologies that cannot be bought or begged for. Currently, the formation of some "chokepoint" problems in China is inseparable from the background of the division of labor "lock-in" [12] caused by the "Matthew Effect" of economic globalization, as well as reasons such as a lack of talent, institutional constraints, and insufficient investment. Therefore, we must coordinate the construction of a leading power in education, science and technology, and talent; enhance the overall effectiveness of the national innovation system; comprehensively strengthen the capacity for independent innovation; seize the commanding heights of technological development; and constantly give rise to new quality productive forces. We should concentrate our forces to strengthen original innovation and the tackling of key core technologies; promote the deep integration of technological innovation and industrial innovation; adhere to the integrated design of original innovation, integrated innovation, and open innovation; and deploy the innovation chain, industrial chain, and talent chain in an integrated manner to achieve independent controllability of key core technologies.
Build an innovation-friendly financial system to provide "good capital" and "patient capital" for the construction of a modern industrial system. The construction of a modern industrial system cannot succeed without financial support. It should be observed that different techno-financial paradigms have different performances in promoting technological innovation and industrial upgrading. For example, compared to general financial systems, the risk-return structure of financial supply and market demand in an innovation-friendly financial system is better matched. It possesses stronger efficiency in screening entrepreneurs and greater capital support capacity, which helps eliminate short-term corporate behavior, promote the application and diffusion of technology, and drive production innovation. In recent years, an important reason why many technological innovation achievements have emerged in Chinese cities such as Shenzhen and Hangzhou lies in the support of their techno-financial systems. To this end, we must adhere to the fundamental tenet of finance serving the real economy, further deepen supply-side structural reform in the financial sector, increase the supply of financial resources capable of overcoming market failures, and improve the construction of a systemic financial service system. We should effectively implement integration projects for technology, industry, and finance; guide various types of capital to "invest early, invest small, invest long-term, and invest in hard technology"; and improve the high-efficiency linkage mechanism between technology, industry, and finance.
Coordinate the relationship between supply and demand, and accelerate the construction of a modern industrial system by adapting to, creating, and leading demand. The construction of a modern industrial system must take the continuous satisfaction of the people's needs for a better life as its starting point and ultimate goal. This process will also create new products and services, stimulate new investment and consumption demand, and form a virtuous cycle where demand pulls supply and supply creates demand. To this end, we must persist in taking high-quality development as the theme; organically combine the strategy of expanding domestic demand with the deepening of supply-side structural reform; and persist in the close integration of improving people's livelihoods with promoting consumption, and investing in "things" (infrastructure/assets) with investing in "people." We should promote positive interaction between consumption and investment, and between supply and demand, enhancing the endogenous power and reliability of the domestic transition of the "dual circulation" and improving the quality and level of the international circulation. By improving quality and optimizing structure, we can increase the matching degree between supply and demand; by supplementing and strengthening chains, we can guarantee industrial chain security and stable domestic supply; by promoting the integrated development of the service and manufacturing industries, we can meet personalized and high-quality consumption needs; and by enhancing the quality and brand influence of domestic high-end equipment and independent brand consumer goods, we can strengthen consumer confidence and reduce "demand spillover," and so forth.
(The author is the Dean of the National Institute of Development, Sun Yat-sen University) Source: People's Daily, November 7, 2025 Web Editor: Chu Yang