China ranks first globally in manufacturing, holding the title of the world's largest manufacturing power and accounting for roughly 28-29% of global output, far surpassing the US, Germany, and Japan, and serving as the "factory of the world" for diverse goods. Its dominance is seen in its vast industrial output, leading exports, and role as a preferred global manufacturing hub.
Major manufacturing nations
According to the United Nations Industrial Development Organization (UNIDO), China is the manufacturer with the highest output worldwide in 2023, producing 28.7% of the total global manufacturing output, followed by the United States of America, Germany, Japan, and India.
China's Manufacturing Dominance
China's lead has widened since then. In 2023, China's manufacturing value-added reached $4.66 trillion, which was 28 percent of the global total, and more than the next three largest manufacturing economies combined (the United States, Japan, and Germany).
China remains the world's sole manufacturing superpower, but is losing ground. By Richard Baldwin, Professor of International Economics, IMD.
China is the world's largest manufacturing industrial economy and exporter of goods. China is widely regarded as the "powerhouse of manufacturing", "the factory of the world" and the world's "manufacturing superpower". Its production exceeds that of the nine next largest manufacturers combined.
Vietnam. Vietnam has become particularly attractive as a manufacturing hub for many of the same reasons as China did decades ago. The country has strong English proficiency and low labor costs even when compared to its neighbors.
Yes, China has one of the world's highest homeownership rates, often cited as around 90% or even higher (87% urban, 96% rural), driven by post-1998 housing reforms that privatized public housing and strong cultural emphasis on property as stability and a prerequisite for marriage. However, this figure can be misleading; it primarily counts those with urban household registration (hukou), often excluding many migrant workers, and while ownership is high, many face significant mortgage burdens, and the land itself remains state-owned.
China's "0.1% rule" refers to its 2025 export controls that require licenses for products containing 0.1% or more (by value) of certain Chinese-origin rare earth elements or technologies, extending China's regulatory reach globally to materials like magnets, semiconductors, and defense components, even if manufactured outside China. This extraterritorial control, similar to the U.S. Foreign Direct Product Rule, aims to leverage China's dominance in rare earth supply chains for strategic influence, impacting high-tech industries by requiring approval for exports and potentially disrupting global supply chains.
- Why do U.S. manufacturers rely so heavily on China for production? U.S. manufacturers rely on China primarily because of its low-cost labor, advanced manufacturing infrastructure, and efficient supply chains. These factors make it difficult for companies to produce goods at the same cost and scale in other countries.
So much is made in China because the country combines a huge skilled workforce, dense industrial clusters, export-focused infrastructure, and decades of manufacturing-friendly policies. Once global brands built their supply chains around China, scale and experience made it even more efficient to keep producing there.
China benefits from lower labor costs, economies of scale, and faster supply chain networks. These factors make production more affordable compared to Western countries, where labor and compliance costs are higher.
China's dominance is undeniable, commanding nearly a third of global production, while the US and Japan maintain their traditionally strong positions through technological innovation and high-value manufacturing.
At number one overall, German goods were found to be respected by a large number of respondents. In a country-by-country basis, the nation ranked #1 in 13 other countries and respondents lauded the quality and high security standards of German production.
The U.S. is ranked 9th in output per hour among 142 countries using data from the Conference Board. In 2022, Manufacturing total factor productivity was 0.5 % above its 2005 level. In 2022, durable goods was 6.7 % above its 2005 level. In 2022, nondurable goods was 4.3 % below its 2005 level.
China's "3-hour rule" for minors restricts children under 18 to playing online video games for only three hours per week, specifically from 8 PM to 9 PM on Fridays, Saturdays, Sundays, and public holidays, to combat gaming addiction and improve health. Implemented by the National Press and Publication Administration (NPPA) in 2021, the rule mandates gaming companies use real-name verification and facial recognition to enforce limits, though some children bypass it using adult accounts.
Google has a difficult history in China. The company pulled its search engine out of China in 2010 because of government censorship and what the company said was a cyberattack from Chinese hackers trying to gain access to human rights activists' email accounts.
Residents are subject to individual income tax on their worldwide income. Non-residents are generally taxed only on their China-sourced income. For the rates applied on non-residents' income derived from employment, remuneration for labour services, author's remuneration, and royalties, see the table above.
With the exception of individuals with hunting permits and some ethnic minorities, civilian firearm ownership is restricted to non-individual entities. Law enforcement, military, paramilitary, and security personnel are allowed to use firearms. Police are to use issued pistols only to stop serious or dangerous crimes.
A society where problems are hidden rather than solved can appear “orderly,” but that order is often achieved through coercion and silence, not care and dignity. Homelessness exists, but it is made largely invisible through a mix of short-term containment, forced removal, and strict control over reporting.
According to the China Real Estate Index System (CREIS), as of October 2025, the average price of newly built residential properties across 100 monitored cities stood at RMB 16,973 (USD 2,389) per square meter, while second-hand homes averaged RMB 13,268 (USD 1,867) per square meter.
Whether China could defeat the U.S. Navy is a complex, debated topic, with simulations suggesting China's growing missile arsenal poses a significant threat to U.S. carrier groups, potentially neutralizing them in regional conflicts, while the U.S. maintains advantages in technology, nuclear submarines, and global power projection, but faces challenges in matching China's sheer ship numbers and missile quantities. A direct, prolonged war outcome is unpredictable, but China's naval expansion and anti-access/area denial (A2/AD) capabilities are designed to challenge U.S. dominance in the Indo-Pacific, making a conflict devastating for both sides.
But Vietnam is too small to replace China, whose economy is 40 times larger, as the world's factory floor. To try to keep up, its leaders are building new infrastructure, including a highway to the Chinese border that has cut travel time by more than an hour.