At the beginning of 2025, mainstream Western media, including The Economist, reached a conclusion: China’s manufacturing industry is not only vast in scale but also holds technological advantages in several key sectors. Among these, the most frequently mentioned are the “New Three”—photovoltaic (PV) power equipment, lithium-ion batteries and new energy vehicles (NEVs). In 2024, China’s NEV production accounted for over 70% of the global total, lithium-ion battery production approached 80% of the global output, and PV module production exceeded 80%, with China achieving full industry chain self-sufficiency.
The “Old Three” refers to clothing, furniture and home appliances—traditional pillars of China’s exports and the foundation of its manufacturing industry. The “New Three” have become a new growth driver for China’s exports and a fresh emblem of Chinese manufacturing. Notably, the key players in the “New Three” industries are predominantly private enterprises.
A closer examination of the rise of the “New Three” reveals that while industrial policies played a crucial role in the early stages of these sectors, market success was driven by technological innovation. Such innovation is fuelled by China’s vast pool of engineers, a comprehensive industrial supply chain, an ultra-large domestic market and a strong spirit of entrepreneurship.
