As innovation and design emerge as new engines of growth, China’s manufacturing sector is undergoing a shift from scale-driven expansion to value-oriented transformation. In the first half, robust output in high-tech sectors, ranging from 3D printing and smart home appliances to personalized electric vehicles, highlighted the rise of smart manufacturing, where aesthetic design, intelligent production and cultural branding are reshaping global perceptions of “Made in China”. Chinese manufacturers are no longer just producers, they are becoming trendsetters amid growing global demand for design-led products.
At the forefront are brands such as Laopu Gold, which fuses traditional Chinese craftsmanship with contemporary aesthetics. Its first overseas store in Singapore, inaugurated in June, drew hours-long lines with over 90% of visitors being first-time customers, who were drawn by the brand’s design, craftsmanship and the symbolic meaning behind its products, according to a JP Morgan report. Founded 16 years ago, the brand has carved out a new niche in the traditional jewelry market via innovative design and business models. In 2024, the brand’s revenue and profit surged by 166% and 254% year-on-year, respectively, a growth trajectory that has continued in 2025.
In the realm of pop culture, Chinese brand Pop Mart has become a global sensation, with fans lining up outside stores eager to get their hands on the latest trendy Labubu figurine. “Design is our core competitiveness,” said a company representative, citing the firm’s 2,000-person design team that crafts everything from sketches to material texture. More design-powered consumer goods are gaining strong footholds in international markets. A ceramic company from Fujian province secured orders worth CNY2 million in overseas markets for its fruit-themed tableware, while on cross-border e-commerce platforms, sales of solar-powered fan hats from Zhejiang’s Yiwu topped half a million units.
“The popularity of traditional gold craftsmanship and domestic brands like Labubu and Laopu Gold exemplifies how cultural and design premiums are reshaping the value structure of China’s manufacturing,” said Wu Yin, Professor at Southwestern University of Finance and Economics. Rapid advances in digital technology are enabling culturally rich Chinese design elements to better integrate with industrial production, continuously enhancing the brand value of “Made in China”, Wu said.
This growing emphasis on design and innovation is supported by stronger intellectual property protection efforts during the 14th Five Year Plan period (2021-25), which are helping drive China toward global innovation leadership. Between 2020 and 2024, China’s total imports and exports of IP royalties grew at an average annual rate of 5.7%. According to the Global Innovation Index released by the World Intellectual Property Organization (WIPO), China climbed to the 11th place globally in 2024 – remaining the top performer among middle-income economies.
The impact of design innovation is also extending beyond consumer markets into high-end equipment and industrial systems. At the China International Supply Chain Expo (CISCE) held last month in Beijing, a new wave of smart products ranging from humanoid robots to bionic hands showcased the deepening role of industrial design in advanced manufacturing. Industrial design has been integrated into the entire manufacturing value chain through product design, process innovation and business model development, said Guan Bing, Director of an industrial economics institute at the China Center for Information Industry Development. “The more sophisticated and advanced the design is, the higher the demands it places on digitalization and intelligent manufacturing, in turn driving the upgrade of the entire production chain,” Wu said.
In the electric vehicle field, carmaker Xiaomi has merged aesthetics and automation in its latest product line, with its YU7 model’s clamshell-style hood and customizable color features reflecting new consumer preferences. Behind the scenes, the company’s factory operates with over 700 robots, while one-piece die-casting technology has cut component counts from 72 to 1 – reducing production time by 74%. Buoyed by China’s rapid advancements in advanced technologies such as artificial intelligence (AI), industrial design itself is undergoing a rapid transformation. At automotive design firm IAT, engineers now generate styling concepts via voice prompts and AI tools – accelerating design cycles by 50%. An industry report showed that the value of China’s AI industry exceeded CNY700 billion in 2024, with annual growth above 20% for consecutive years, the China Daily reports.
