China Leverages Local Industrial Strengths for High-Quality Growth

According to a report by People's Daily, China is emphasizing tailored upgrades to both traditional and emerging industries as part of its modern industrial strategy. Officials and industry leaders highlighted advancements in bio-based fertilizers in Shandong that boost crop yields while cutting chemical usage by 30 percent, alongside high-precision industrial mother machines produced by Gree Electric for electric vehicles and robotics. The NDRC's macroeconomic institute stressed that upgrading localized industrial foundations—rather than chasing short-term trends—is central to cultivating high-quality economic development.

The focus on localized industrial upgrades illustrates China's strategy to enhance supply chain resilience without over-allocating capital to unproven tech bubbles. By modernizing mature sectors like fertilizers and scaling domestic machine tools for EVs and robotics, Beijing seeks balanced, sustainable economic growth.

In a report published by People's Daily, Chinese macroeconomic experts and industrial leaders outlined how traditional and high-end sectors are advancing high-quality development by leveraging existing regional strengths. According to Xu Qiang, vice president of the Academy of Macroeconomic Research at the National Development and Reform Commission (NDRC), modernizing China's industrial system relies on upgrading established sectors tailored to local conditions rather than abandoning existing foundations to pursue trendy technology hubs. Xu emphasized that building a modern industrial ecosystem requires sustained, targeted efforts to establish self-reliance in core technologies. In Shandong’s Linshu County, local agricultural practices demonstrate this approach in traditional fertilizer production. Zhang Min, deputy director of the National Center of Controlled-Release Fertilizer Engineering and Technology Research, explained that domestic researchers developed bio-based coating materials from natural straw to replace imported petrochemical films. This technology raised fertilizer utilization rates from under 30 percent to 50 percent, reducing fertilizer application by 30 percent while increasing crop yields by 10 percent. Wan Peng, president of Kingenta Group, noted that private enterprises are increasingly collaborating with national key laboratories to establish industry standards. Simultaneously, high-end equipment manufacturing is making progress in domestic replacement. At Gree Intelligent Equipment in Zhuhai, self-developed industrial mother machines have achieved processing precision within 0.003 millimeters. Gree Chairman Dong Mingzhu stated that high-speed dual five-axis gantry machining centers designed for integrated die-cast electric vehicle (EV) components have improved efficiency by 80 percent compared to conventional gear. The equipment is already being supplied in volume to multiple EV manufacturers. Additionally, Gree has introduced five-axis machining tools targeted at precision parts for intelligent robotics to lower procurement costs and secure domestic supply chains. Xu noted that fostering new quality productive forces depends on persistent research into key components to secure industrial supply chains across agricultural, machinery, and emerging high-tech sectors.