Industrial capacity is not synonymous with technological prowess. A country’s industrial base includes not just its cutting-edge technologies and actors, but also its foundational capabilities that make up the base of its economic prosperity and competitive capacity. The People’s Republic of China’s (PRC) “smart manufacturing” policies are targeted at upgrading its foundational industrial capabilities and creating the conditions for technological breakthroughs. If the Chinese Communist Party (CCP) is successful at developing a self-reliant and high-value smart manufacturing sector, the productivity gains would better equip China to challenge the United States’ economic and national security interests.
What is smart manufacturing? Chinese policymakers conceptualize it as manufacturing integrated with information technology using advanced techniques—which drives data-driven production, generative digital operations, and the fortification of inte
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