China's 2-Year Plan to Boost Electronics Manufacturing

On September 4, 2025, China introduced a comprehensive two-year action plan aimed at stabilizing and boosting growth in its vast electronic information manufacturing sector. This initiative, unveiled by the Ministry of Industry and Information Technology and the State Administration for Market Regulation, sets ambitious targets for output, revenue, and technological advancements through 2026.

Key Targets of the Action Plan

1. Annual Growth in Industrial Output

The plan sets a target for an average annual growth rate of approximately 7% in the industrial output of large-scale manufacturers in sectors such as computers, communications equipment, and other electronic devices. This growth is expected to solidify China's position as a global leader in electronics manufacturing.

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2. Revenue Growth in Related Sectors

Incorporating related industries like lithium batteries, photovoltaic products, and electronic components, the plan anticipates an average annual revenue growth exceeding 5%. This reflects China's commitment to expanding its influence across various facets of the electronics industry.

3. Support for Core Products

The plan emphasizes stabilizing trade in core electronic products, including mobile phones, computers, and televisions. Measures will be implemented to support domestic champions and ensure the competitiveness of these essential products in the global market.

Strategic Measures for Industry Advancement

1. Equipment Renewal and Technological Upgrades

A significant focus of the plan is on the renewal of equipment and the construction of major projects. By leveraging these initiatives, China aims to elevate its electronic information manufacturing industry to a more high-end, intelligent, and eco-friendly level.

2. Development of Industry Clusters

The plan encourages the construction of internationally leading electronic information industry bases and specialized clusters for smaller enterprises. These clusters are expected to foster innovation, collaboration, and efficiency within the industry.

3. Promotion of Advanced Technologies

China is committed to promoting innovation in premium 5G/6G components, high-end chips, and modules. The plan outlines efforts to accelerate the enhancement of supply capabilities for next-generation equipment and to ramp up research and innovation in 6G technology.

China's Global Position in Electronics Manufacturing

By 2026, China aims to maintain its status as the largest among 41 major industrial categories in both revenue and export share within the electronic information manufacturing sector. This ambitious goal underscores China's determination to lead in the global electronics market.

Financial and Policy Support

To facilitate the objectives outlined in the action plan, China has pledged increased financial support for advanced manufacturing. New guidelines aim to promote industrial upgrades and mitigate harmful overcompetition. The focus is on enhancing domestic demand and fostering technological innovation amid external challenges like trade tensions.

Projected Economic Impact

The action plan is expected to have a significant economic impact, with projections indicating that five provinces will each see their electronic information manufacturing revenues exceed 1 trillion yuan ($138 billion). Additionally, China's server industry is projected to surpass 400 billion yuan. These figures highlight the substantial growth anticipated in the sector.

China's two-year action plan represents a strategic move to fortify its electronic information manufacturing industry. By setting clear targets for growth, supporting technological advancements, and fostering industry collaboration, China aims to solidify its position as a global leader in electronics manufacturing. The plan's comprehensive approach reflects China's commitment to innovation and economic development in the digital age.

This initiative aligns with China's broader industrial strategies, including the "Made in China 2025" plan, which focuses on upgrading manufacturing capabilities and reducing reliance on foreign technology. The current action plan builds upon these foundations, emphasizing the importance of technological self-sufficiency and global competitiveness.

In summary, China's two-year action plan is a decisive step towards enhancing its electronic information manufacturing sector. Through targeted growth, technological innovation, and strategic support, China is poised to strengthen its position in the global electronics market.