Equipment upgrades to fuel investments, industrial transformation in China

Major equipment upgrades in China's traditional industries are set to drive increased investment and facilitate high-end development through the adoption of more advanced, cost-effective technologies.

China is a global manufacturing powerhouse, with its manufacturing sector accounting for 26.2 percent of the country's GDP in 2023 and contributing approximately 30 percent to the world's total manufacturing added value. Traditional industries - including petrochemicals, steel, nonferrous metals, building materials, machinery, light industry, and textiles - comprise over 80 percent of China's manufacturing output.

These industries are poised for a major shift, as equipment upgrades are expected to spearhead their transformation toward smarter, greener operations.

"Upgrading industrial equipment - including advanced machinery, digitalization, the adoption of green technologies, and safety enhancements - will effectively foster technological advancements, process upgrades, energy conservation, and production safety, especially in traditional industries. This transformation will drive high-end, intelligent, and green development across the sector," said Fan Meng, a director with the Industrial Investment Research Office of the Planning Research Institute of CCID Consulting at the Ministry of Industry and Information Technology (MIIT).

Despite the significant progress made to date, many enterprises still face long equipment renewal cycles, with much of their operational machinery outdated and inefficient.

Widespread equipment upgrades across the manufacturing sector will not only improve production efficiency and product quality, but also eliminate safety risks associated with aging equipment, helping businesses meet higher safety and quality standards.

"China's industrial equipment investment reached 4.4 trillion yuan (about 608 billion U.S. dollars) in 2023, accounting for over 70 percent of the nation's total equipment investment. According to new policies, industrial equipment investment is projected to grow by more than 25 percent by 2027, creating an estimated demand exceeding 10 trillion yuan (about 1.38 trillion U.S. dollars) over the next three years," said Gong Tianxiao, deputy director of the Institute of Information and Industrialization Integration of the China Academy of Information and Communications Technology (CAICT), referring to the targets and measures published by the Chinese government in April this year for industrial equipment upgrades to expand effective investment and develop new quality productive forces.

Equipment upgrades to fuel investments, industrial transformation in China

People in Yemen are struggling for survival as the country continues to grapple with a deepening labor crisis after more than a decade of war, with many lamenting the lack of opportunities which are leaving the livelihoods of many hanging in the balance.

As the world marks International Workers' Day on Friday, the situation in Yemen seems all the more poignant as millions of people are finding it increasingly hard to find any work at all.

In the crowded streets of the capital Sana'a, workers gather on street corners, waiting for jobs that may never come. Ahmed Muawadah is one of the many who are sitting here, watching passing cars, desperately hoping that one will stop and offer work.

"Our suffering is that we sit here without work. Sometimes we spend a whole month without working, except for one day, or just one day every two weeks. Work is very limited, almost non-existent. I have nine children, and I only work one day a month. I cannot support them. Jobs have completely disappeared. If opportunities were opened for us, I and all the workers would work," said Muawadah.

This individual story reflects a broader reality affecting an estimated eight million workers across Yemen. Many of them are hoping to receive a daily wage, but the challenges are mounting in an increasingly strained labor market.

Activity in key sectors such as construction and services has dropped sharply, largely due to the suspension of several international initiatives, including those backed by the World Bank. As a result, income opportunities have narrowed for those who rely primarily on daily wages.

Meanwhile, the widening impact of the U.S.-Israeli war on Iran and the disruption caused along the key Strait of Hormuz -- a key shipping route for global trade -- has brought more misery in recent weeks.

"There has been a significant decline in business activity as a result of the war, the blockade, and the disruption of work. Foreign capital has also left the country, and large companies have moved out of Yemen and stopped their operations. This is one of the main reasons," said Abdul Karim Al, secretary general of the General Federation of Trade Unions in Sana'a.

Yemen residents struggling to survive as work dries up amid deepening labor crisis