Workers assemble a new-energy vehicle at a manufacturing plant in Shijiazhuang, North China’s Hebei Province, on December 24, 2025. From January to November this year, China’s automobile production reached 31.231 million units, up 11.9 percent year-on-year, and sales reached 31.127 million units, up 11.4 percent year-on-year, according to official data. Photo: VCG

China's economy in 2025 showed a clear shift toward innovation-driven, with research and development spending intensity reaching 2.8 percent — up 0.11 percentage points from a year earlier and surpassing the average OECD economies (Organization for Economic Cooperation and Development) for the first time, the National Bureau of Statistics (NBS) said on Monday. 

China's innovation-index ranking stood among the global Top Ten for the first time, according to data released by the World Intellectual Property Organization. 

From new advances in basic research to breakthroughs in key technologies, and from deeper integration between technological and industrial innovation to the broad rollout of digital applications, China has seen a steady stream of achievements in frontier fields such as AI, quantum computing and brain-computer interfaces, with new quality productive forces continuing to gain momentum, Kang Yi, head of NBS, said at a press briefing on Monday explaining last year's economic data.

Bian Yongzu, executive deputy editor-in-chief of Modernization of Management magazine told the Global Times that official data show China's R&D capacity has risen markedly, strengthening its global position in innovation. This is reflected not only in the rapid growth of patent filings, but also in improving patent quality, supported by a large manufacturing base, a vast research workforce and government policies.

In 2025, the value added of digital products manufacturing among industrial enterprises above the government's designated size grew by 9.3 percent year on year, with output of servers and industrial robots posting rapid growth. Green electricity, renewable energy and the broader green economy expanded robustly, while new energy vehicles accounted for more than 50 percent of domestic new-car sales, Kang said.

China's technological strength gained further momentum in 2025, with spending on research and experimental development reaching 3.93 trillion yuan ($550 billion), ranking second globally for consecutive years. China became the first country to hold more than 5 million valid domestic invention patents, while its Patent Cooperation Treaty filings topped the world for the sixth straight year, Kang said, when asked about the key features of new quality productive forces.

Breakthroughs in major technologies continued, from the maiden flight of the "Jiutian" drone and the Tianwen-2 mission to the commissioning of the first electromagnetic catapult aircraft carrier and the debut of the CR450 high-speed train, underscoring steady progress toward high-level technological self-reliance, Kang added.

Industrial upgrading gathered pace, Kang said. Investment and capacity expansion continued in emerging sectors such as high-end equipment, green energy and intelligent manufacturing, with deeper integration between technological and industrial innovation delivering tangible results. In 2025, equipment manufacturing and high-tech manufacturing accounted for 36.8 percent and 17.1 percent of value added by industrial enterprises above the designated size, respectively.

The low-altitude economy expanded rapidly and embodied intelligence advanced steadily, with output of civilian drones and industrial robots rising 37.3 percent and 28 percent year on year. Progress in intelligent manufacturing accelerated, as the number of smart factories increased and industrial internet applications extended across all 41 major industrial categories.

Digital penetration deepened further, Kang said. Digital industries, consumption and infrastructure expanded across the economy, integrating into both production and daily life. In 2025, value added from digital product manufacturing rose 9.3 percent year on year, while the information transmission, software and information technology services sector grew by 11.1 percent.

Artificial intelligence (AI) became more widely used in work and everyday scenarios, boosting efficiency and convenience. New consumption models gained traction, lifting online retail sales by 8.6 percent, as 5G, gigabit broadband and the Internet of Things continued to roll out steadily.

"Green leadership became more pronounced," Kang said. China stepped up efforts to build a clean and low-carbon energy system, with clean power generation rising 8.8 percent in 2025 and the share of non-fossil energy in total consumption increasing by about 2 percentage points.

The new energy sector grew more competitive, as annual production and sales of new energy vehicles both topped 16 million units, while green lifestyles gained wider acceptance. Traditional industries also advanced in green upgrading, with energy intensity declining across major energy-intensive sectors, Kang said.

Bian noted that the expansion of patent activity is building long-term tech advantages for Chinese enterprises, enabling stronger competitiveness and continued reinvestment in innovation, which in turn reinforces the resilience of the national innovation ecosystem.

According to Bian, tech progress is consistently accelerating China's economic transformation, particularly in green upgrading. Advances in renewable energy are reducing reliance on fossil fues, while breakthroughs in AI are being rapidly applied in manufacturing, boosting efficiency and product quality. China's combination of strong research institutions and a comprehensive manufacturing base allows innovation to be commercialized quickly, giving the country a structural edge in global competition.

Global Times