Boasting high efficiency, low cost and most comprehensive industrial chains, China has long been positioned as the "world's factory." The country is now heading for the next goal: cultivate an upgraded manufacturing sector that is not only big but also robust and smart.

High-end manufacturing, compared with traditional manufacturing that is labor-intensive, is more technology-focused and produces high value-added products.

Common high-end manufacturing industries include: rail transportation equipment, industrial robots, high-end medical devices and pharmaceuticals, high-end ships and marine engineering equipment, new energy (electric) vehicles, and modern agricultural machinery.

Facing shrinking global market demand, an increasing number of companies are investing more in research and development to increase the added value of their products, to obtain higher profits and increase global competitiveness, which promotes the development of high-end manufacturing.

China's high-end manufacturing industry is developing rapidly, resulting from the country's relatively mature industrial chain and good domestic business environment to support innovation.

“The Report to the 20th National Congress of the Communist Party of China” highlights the importance of guiding and encouraging foreign investment in industries, improving the quality of foreign investment, and leveraging the positive role of foreign-funded enterprises in high-quality development. It emphasizes the orientation towards high-end manufacturing, technology and innovation, and green and low-carbon development, promoting a rational regional layout.

To further facilitate the development of the high-end manufacturing sector, the Chinese government has ramped up supportive measures to lower companies' financial burden and offer more incentives.

For example, the tax authorities will implement and improve support policies such as tax incentives for high-tech enterprises and accelerated depreciation for newly purchased fixed assets in key manufacturing industries, to promote the upgrading of manufacturing towards high-end development. Additionally, policies such as the deduction of research and development expenses and tax incentives for technology transfer will be leveraged to accelerate the digital transformation of the manufacturing sector.