A drone photo taken on Jan. 13, 2026 shows a ship under construction at a shipyard of Cosco Shipping Heavy Industry (Yangzhou) Co., Ltd. in Yangzhou, east China"s Jiangsu Province. (Photo by Meng Delong/Xinhua)

　　China is upgrading its traditional industrial base while cultivating new sectors that could shape future competitiveness, seeking to move beyond scale and cost advantages toward a more innovation-driven industrial model, and inject new impetus into the country"s high-quality development.

　　In the first half of 2026, the world"s manufacturing powerhouse saw its value-added industrial output rise 5.4 percent year on year, with the industrial sector contributing more than 35 percent to overall economic growth.

　　The country"s 15th Five-Year Plan (2026-2030) underscores the development of a modernized industrial system with advanced manufacturing as its backbone. Across factories and industrial clusters, a dual transformation is underway -- modernizing established industries while cultivating new engines of growth.

　　MODERNIZING TRADITIONAL INDUSTRIES

　　Traditional industries remain an important part of China"s industrial strength, and they are increasingly being reshaped by technology and innovation.

　　Major industrial enterprises recorded an 18.8-percent year-on-year increase in profits in the first five months, while key sectors continued to support overall industrial growth.

　　Equipment manufacturing has emerged as one of the strongest contributors. The sector contributed 23.5 percent to the total growth in industrial value-added output in the first half of the year, supported by strong performance in areas such as shipbuilding, automobiles and advanced equipment.