Most people assume China already sees itself as the world’s top manufacturing power. But that’s not how China sees it. China sees itself as the world’s factory, which is not the same — and according to one of the most important official reports used by Chinese policymakers, the United States is still ranked number one in actual manufacturing strength overall.

This report, "China Manufacturing Power Development Index Report," published annually for over 15 years now by the Chinese Academy of Engineering, the China Center for Information Industry Development, and CCID Consulting, evaluates countries not just on how much they produce, but on the full range of capabilities that make a country a real industrial powerhouse. It’s one of the reference points that policymakers care about deeply when assessing China’s progress and setting long-term priorities.

I recently read the full 2021 report (which ranked countries as of 2020). As of that year, the United States was firmly in the lead, scoring 173.19. China was still in fourth place, behind Germany and Japan. The U.S. had also gained the most in absolute score since 2015.

At that time (2021), the index had four major dimensions, each with meaningful weight:

1. Quality and efficiency (29.31%) – Captures labor productivity, value-added rate, profitability, and brand strength.

2. Structural optimization (28.05%) – Reflects the technological depth and composition of the manufacturing sector, including R&D intensity and patent power.

3. Sustainable development (23.13%) – Measures energy efficiency, environmental impact, and digital transformation.

4. Scale development (19.51%) – Covers total manufacturing output and global export share, but is the least important of the four.

So it’s not about who produces the most stuff. It’s about who does it best — with the most advanced systems, the most efficient use of resources, and the strongest long-term competitiveness.

I couldn't find the full version of the 2024 news report, but it seems that since 2022, the index has now added a fifth dimension: innovation development. I don't have the new weights, but we do know this: the U.S. is still number one by a clear margin, and China remains at number four. You can see that in the screen cap below.

So why is the US still #1 in China’s eyes?

Because actually ... despite no longer being a maker of many things, the US still leads across nearly every major dimension. China, by contrast, scores well on scale and has made visible progress in structural optimization and digitalization, but it still trails in key areas like energy efficiency, profitability, and global brand recognition.

The deeper takeaway is this: when people talk about China surpassing the US in manufacturing, they’re usually thinking about where goods are made. But from the perspective of China’s own top engineers and planners, being a manufacturing superpower is about much more than that. It’s about upstream capabilities, technological sophistication, and resilience over time.

-Rui