Xi Focus: Traditional industries bloom anew in China's modernization push

BEIJING -- From steel mills adopting AI-powered systems to textile factories deploying cutting-edge automation, China's traditional industries are undergoing a significant transformation.

Spearheaded by President Xi Jinping, this drive is injecting fresh vitality into traditional sectors that underpin the country's modern industrial base.

Under Xi's watch, China is doubling down on boosting the competitiveness and sustainability in these sectors, which generate about 80 percent of the country's manufacturing output and play a vital role in supporting employment and broader economic growth.

"The real economy should not be neglected. Nor should the traditional industries within it. And industrial transformation and upgrading must be realized through sci-tech innovation," Xi, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, said while visiting Yangquan Valve Co Ltd, a century-old enterprise, during an inspection tour in North China's Shanxi province this week.

By focusing on innovation and boosting investment in research and development, the company has earned the designation of a "little giant" enterprise, a title for outstanding specialized, high-tech small and medium-sized firms. It has obtained dozens of patents and expanded its global footprint through exports to countries including the United States, India and Pakistan.

During this visit to the company, Xi emphasized that traditional manufacturing is an important part of the real economy, and called for efforts to respond to market demand and enhance sci-tech innovation to breathe new life into traditional industries.

Boosting the development of traditional industries has been high on the agenda of Xi.

During his domestic inspections in recent years, Xi has regularly visited enterprises and factories. He inspects production lines and engages in conversations with frontline workers, gaining a firsthand understanding of the products and the progress involving transformation and upgrading.

These on-the-ground surveys have reinforced China's push for transformation and upgrading tailored to regional strengths, rather than relying on a one-size-fits-all approach.

This emphasis was highlighted during an inspection tour of Southwest China's Yunnan province in March, where Xi urged all regions to pursue industrial transformation and upgrading based on local conditions, in line with economic principles, while making full use of their unique strengths.

"Old enterprises can also pursue high-end, smart and green transformation. It is crucial not to dismiss traditional industries as uniformly 'low-end' or 'backward' and simply phase them out, as doing so could lead to a disruption in the transition from old to new growth drivers, cause a loss of momentum, and exacerbate the pains of structural adjustment," Xi said during an inspection tour in Liaoning province in January.

Since introducing the concept of new quality productive forces in 2023, Xi has consistently highlighted that traditional industries are the cornerstone for developing advanced productive capabilities.

During a deliberation at the annual national legislative session last year, Xi noted that developing new quality productive forces "does not mean neglecting or abandoning traditional industries."

This point was further reiterated in May last year when he visited Shandong province and commended Rizhao Port for its successful transformation from a traditional port into a modern one. "The port has not only achieved top-tier cargo throughput nationwide but has also gained valuable insights into fostering new quality productive forces through the transformation and upgrading of traditional industries," Xi said.

Guided by his vision, China has made significant progress in accelerating the transformation and upgrading of traditional industries, steering them toward more advanced, intelligent and greener development.

Technologies like industrial internet, 5G and AI have been extensively applied in traditional industries. In 2024, investment in technological upgrades in the manufacturing sector increased by 8 percent year-on-year, outpacing the overall investment growth.

In key energy-consuming industries such as chemicals, building materials, steel and non-ferrous metals, energy consumption per unit of value-added output fell in 2024 from the previous year.

Looking ahead, China will take comprehensive measures, including pushing technological advances as well as large-scale equipment renewal projects in the manufacturing sector, and accelerating the digitalization of manufacturing, to promote traditional industry transformation and upgrading, according to this year's government work report.

"In the past, Chinese workers made arduous manual efforts to hammer away at the country's industrial development. Today, it must be upgraded through advanced technologies and equipment," Xi said, stressing that the real economy makes the country prosperous and solid work makes it flourishing.