China is revising its strategy for the electronics industry by shifting its focus from high production volume toward strengthening control over key components, materials, and technologies essential to its manufacturing processes. A joint development plan released by the Ministry of Industry and Information Technology (MIIT) and the National Development and Reform Commission outlines priorities for achieving technological breakthroughs and building more resilient supply chains.
The plan aims to increase the sector’s revenue from 17.4 trillion yuan ($2.46 trillion) in 2025 to over 30 trillion yuan ($4.24 trillion) by 2030, requiring sustained annual growth of more than 11 percent in a challenging global economic environment. To support this growth, it sets a target R&D investment intensity of 3.5 percent across the industry by 2030 and includes commitments to significantly expand national computing power and advance the adoption of next-generation artificial intelligence (AI) devices.
China’s electronics manufacturing encompasses a wide range of activities, from producing electronic devices carrying information technology to upstream components, measuring instruments, materials, and specialized equipment. The electronics sector has maintained its position as the top-ranking industry by revenue among 41 major industrial sectors for 13 consecutive years through 2025, playing a key role in stabilizing industrial growth.
Data from the first eight months of this year show strong momentum, with value-added output in the sector growing 15.7 percent year-on-year, outpacing growth from the previous year by nearly five percentage points. In August alone, the sector generated revenue of 1.74 trillion yuan, marking a 25 percent increase compared to the same month last year. Officials note that electronic information technology is increasingly integrated across multiple industries, driving further growth.
The new plan focuses on reinforcing China’s competitive capabilities across various fields, including integrated circuits, advanced computing, consumer electronics, basic electronics, and energy electronics. It emphasizes increasing computing power supply and boosting the market penetration of new intelligent terminal devices. The plan also calls for innovation in key consumer electronics such as high-end mobile phones, personal computers, and virtual reality hardware.
Industry experts have generally welcomed the plan as timely and crucial in addressing global technology competition. Ni Guangnan, an academician at the Chinese Academy of Engineering, described it as a strategic roadmap for high-quality development over the next five years, setting clear guidance for the sector’s advancement. Liu Bin, an MIIT official, highlighted the importance of overcoming bottlenecks related to foreign vulnerabilities, using photonics as an example of where pilot testing platforms will support breakthroughs.
AI technology is seen as a driver of new demand and product innovation, increasing the importance of hardware supply and system integration. Guo Yuansheng, executive vice-chairman of the China Sensor and Internet of Things Industry Alliance, noted that the plan’s focus on smart sensors represents a shift from isolated technology development to building comprehensive industrial chain capabilities.
Regional industry clusters are already aligning with the plan’s goals. Xu Shengbin, executive director of a science and innovation park in Wuhan, emphasized the necessity of a strong industrial base in components and core materials as fundamental to the sector’s sustainable growth. He pointed to models like Optics Valley in Wuhan as effective platforms that combine leading companies, specialized parks, and suppliers to foster innovation.
Despite the plan’s broad support, some in the industry caution that breakthroughs in core technologies require long-term commitment and sustained policy backing. Existing national projects, with high thresholds for revenue and patent counts, may limit participation by smaller specialized enterprises. There are calls for enhanced government support geared toward long-cycle R&D, improved industry chain matchmaking, and policies to attract and retain talent.
Overall, China’s electronics industry appears to be entering a pivotal phase, transitioning from rapid scale expansion toward deeper technological self-reliance and innovation amid increasing global competition and supply chain uncertainties.