China's economic development over the past few decades reveals a clear trajectory of industrial evolution. This shift shows a transformation in China's growth drivers, export structure and global role, growing from a latecomer into a technology leader shaping new frontiers.

Following the launch of reform and opening up in 1978, textiles, furniture and home appliances, known as the "old three," became the foundation for China's integration into the global economy. These labor-intensive sectors relied on an abundant workforce, low land costs and inexpensive energy to achieve large-scale production. They not only created jobs and accumulated capital but also established China's position in global trade.

As the economy expanded and capabilities improved, the structure of China's leading industries evolved. In the 2010s, a new trio, namely, electric vehicles (EVs), lithium-ion batteries and photovoltaic products, rose to prominence. Dubbed the "new three," these sectors signaled a decisive shift from labor-based to technology-driven manufacturing.

Unlike the "old three," the "new three" demand capital-intensive investment, advanced technology and strong supply chains. Their competitiveness relies on innovation and engineering strength. As of late 2025, China had issued 57 national standards for these fields: 13 for new-energy vehicles, two for lithium-ion batteries and 42 for photovoltaics.

China now leads the world in power battery shipments, and its photovoltaic module output has ranked first globally for 16 consecutive years. The rise of the "new three" illustrates China's evolving role in global industry, from absorbing transferred technology to driving innovation itself. In contrast to earlier stages, when technologies matured elsewhere before reaching China, the "new three" gained global competitiveness early in their development.

Since 2025, another trio, i.e., robotics, AI and innovative pharmaceuticals, has begun to define the "next new three." That year, China's industrial robot market remained the world's largest for the 12th consecutive year. The country accounted for more than 60 percent of global AI-related patents. In pharmaceuticals, overseas licensing deals involving innovative Chinese drugs reached $137.7 billion, 10 times the 2021 level. International investors and corporations, including major pharmaceutical firms, now view China as integral to global research and development.

These three sectors are expected to anchor China's efforts to build a modern, innovation-driven industrial system. They not only create new growth engines but also upgrade traditional sectors by introducing advanced solutions.

Viewed as a continuum, this transition represents a shift from mass manufacturing to intelligent manufacturing. Each stage reflects a different developmental priority. The "old three" responded to demand for affordable, essential goods produced at scale. The "new three" enhanced quality and technology, supporting green and sustainable growth. The "next new three" aim to elevate China's capacity for original innovation and strengthen competitiveness in frontier industries.

During the era of the "old three," China served as a manufacturing destination for relocated industries, guided by standards from advanced economies. In the "new three" stage, Chinese firms began running alongside, if not ahead of, global peers in EVs and renewable energy. With the rise of the "next new three," China is increasingly contributing to setting new global standards.

As Chinese Foreign Ministry spokesperson Lin Jian noted at a press briefing on

May 8, the "old three" stabilized global supply chains, lowered consumer costs and eased inflationary pressures. The "new three" industries have met global demand for clean energy and accelerated the shift toward low-carbon development. Now, the "next new three" are lowering barriers to cutting-edge technologies, making them more accessible and affordable worldwide.

Together, these three stages trace China's industrial ascent, illustrating a national transformation rooted in continuous learning, technological mastery and a vision for the industries of the future.

Copyedited by Elsbeth van Paridon

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