China's economy is experiencing a fundamental transformation, as emerging technologies shift from auxiliary functions to core engines of expansion. Figures from the National Bureau of Statistics released in July reveal that high-end manufacturing, the digital economy and modern services together accounted for more than 40 percent of growth during the first half of 2026.

This expansion stands out because it stems from accelerated innovation and enhanced technological strength rather than simply scaling up existing output. Fields such as artificial intelligence, automation, clean energy and digital systems are extending across industries, backed by heavy research spending and growing commercial uses.

Official statistics indicate that integrated circuit production alone reached nearly 280 billion units in the first six months, marking a 23.1 percent rise compared with the prior year and highlighting rapid capacity gains.

Simultaneously, greater focus on the domestic market has enabled the country to weather global shocks and soften the effects of geopolitical strains and trade disputes on exports. This approach has also helped counter the inherent limits of overseas demand.

China has leveraged the vast scale and spending power of its internal market. These factors allow new technologies and goods to reach efficient production volumes and achieve manufacturing improvements, as seen in electric vehicles and renewable energy equipment.

Advances in sustainable public transit and ongoing infrastructure renewal have added directly to GDP while raising productivity in many sectors through cluster effects, fresh innovation and emerging competitive edges.

All of these developments rest on rising research investment. China's research and development spending hit 2.8 percent of GDP in 2025, surpassing the OECD average for the first time. Its research workforce exceeded 7.5 million full-time equivalents, the world's largest. This scale has allowed China to lead in patent filings and to shorten the journey from discovery to large-scale manufacturing.

China's approach therefore blends innovation with swift industrial upgrading. Combined, these elements generate lasting value and provide genuine, enduring competitiveness beyond short-term resilience.

The emergence of AI, robotics and novel medicines, referred to as the next new three, follows the same path that produced the earlier new three of electric vehicles, lithium batteries and solar products.

Having tracked China's progress over time, the long-term nature of this shift is clear. Beginning in the late 1980s, the country started developing science and technology parks and building an innovation ecosystem while drawing in global advanced manufacturers. Momentum increased after World Trade Organization entry in 2001, alongside broader reforms and opening policies.

In 2015 the Made in China 2025 plan outlined a decade-long effort to modernize manufacturing and move from investment-led to innovation-led growth. Research output has climbed sharply since that time.

Results are visible now. New-energy vehicles, renewables and battery storage have progressed quickly, with costs in certain areas dropping more than 90 percent over ten years. Biotechnology and pharmaceuticals have also expanded rapidly. Especially notable is the reduced time from invention to market launch, supported by a stronger industrial supply chain.

Beneficial, inclusive growth

China's record therefore provides useful guidance for building innovation-led economies, particularly for developing nations in the Global South. Its broader importance lies in the potential to advance worldwide development.

The 2026 World Artificial Intelligence Conference in Shanghai represented a key step toward keeping AI development beneficial and widely accessible.

At the event, China pledged to offer developing countries 5,000 AI training and seminar places over the next five years. It will also create international AI cooperation centers with the African Union and other regional bodies and assist 30 countries with the AI-powered MAZU weather alert system.

These pledges are significant for developing economies, especially given the absence of a robust global AI governance structure.

Looking forward, China is well positioned to influence global technology trends and help shape a governance framework that serves all United Nations members. The country has shown consistent support for opening and fair cooperation with developing partners. The immediate task is to broaden and deepen that collaboration.

Multiple avenues can advance this effort. The United Nations offers the primary platform for worldwide cooperation, while South-South mechanisms such as the Forum on China-Africa Cooperation, BRICS and China-ASEAN ties are well suited to the priorities of the Global South.

Institutions including the Asian Infrastructure Investment Bank and the New Development Bank also play vital roles by providing financing options that many developing countries find difficult to access elsewhere.

Reform of global governance is equally important. A more inclusive United Nations, with stronger representation for developing nations in decision-making, would inject new energy into sharing technology and its advantages. Collaboration among industry groups, businesses and research bodies can then speed up practical implementation.

In the end, technology should serve as a connector rather than a divider. The manner in which China shares its technological progress will help decide whether the coming phase of global development includes everyone or leaves half the world behind.

The author is Arkebe Oqubay, a British Academy global professor at SOAS University of London and a former senior minister and special adviser to the prime minister of Ethiopia. The article first appeared in the Global Times.

SOURCE Global Times