The manufacturing industry in China is undergoing a key phase in its transformation and upgrading while facing problems on the balance between supply and demand, Vice Minister of Industry and Information Technology Feng Fei said on Monday during a session on Redefining "Made in China" at the Summer Davos in North China's Tianjin.

"The key to addressing problems in the sector is to find a development mode that is driven by innovation," said Feng.

The transformation and upgrading of the manufacturing sector should be carried out based on the features of each segment of the industry, experts at the session noted.

"Inspur focuses on producing servers while trying to transform itself by moving into offering big data and cloud computing services. We are building data centers and serving enterprises and governments, during the process of transforming ourselves into a big data company," Inspur Chairman and CEO Sun Pishu told the same session.

"China's manufacturing sector is complex and diversified. Although high-technology manufacturing has grown rapidly in China, it only accounts for 12 percent of the sector. Thus, the transformation and upgrading of traditional industries should be highlighted first," Feng said.