Chongqing - On September 5, the 2025 World Smart Industry Expo hosted a book sharing session, where Dr. Zhaoyuan Ma, PhD in Physics from the University of Oxford and Fellow of the UK Institute of Physics, delivered a keynote speech titled “Smart Manufacturing in China: The Second Half of the Upgrade Game.”

Dr. Zhaoyuan Ma, PhD in Physics from the University of Oxford and Fellow of the UK Institute of Physics. (Photo/ School of Automation and Intelligent Manufacturing, Southern University of Science and Technology)

Drawing on lessons from U.S. de-industrialization, Sheffield’s re-industrialization, and China’s development path, Dr. Ma offered deep insights into the future of Chinese manufacturing before giving an exclusive interview to Bridging News.

Lessons from U.S. industrial decline

"Manufacturing is not only about economic development; it is the cornerstone of employment and social stability," said Dr. Ma.

China’s manufacturing sector now stands at a critical juncture — shifting from quantitative accumulation to qualitative breakthroughs. On the one hand, China has established global leadership in industries such as electric vehicles, photovoltaics, power batteries, and high-speed rail.  On the other hand, it faces rising labor costs, growing pressure for green and low-carbon transitions, and intensifying international competition. 

Chinese factories face rising costs and green transition pressures. (Photo/ School of Automation and Intelligent Manufacturing, Southern University of Science and Technology)

He began with international experience, noting that in the 1960s and 1970s the U.S. fell into “industrial hollowing out” as manufacturing moved offshore, causing job losses, social tensions, and waves of anti-globalization sentiment. 

The U.S. Great Lakes region, once a hub for steel, coal, and auto manufacturing, became the Rust Belt after industries declined. A key feature of the Rust Belt is population loss; cities like Detroit and Chicago have seen steep declines over the past 30 to 40 years.

China now faces similar challenges as traditional industries that are polluting, energy-intensive, and labor-heavy, declining with rising wages and social demands. Many factories are leaving, replaced by finance, real estate, and knowledge-based sectors, but this shift risks hollowing out local economies.

He cautioned that China, facing higher labor and production costs, must rely on technological innovation and supportive policies to avoid repeating the U.S. experience.

“You cannot win by walking the path of others. To stay competitive, you must build on your own strengths and reinforce your advantages,” said Dr. Ma.

First, China should avoid blindly following buzzwords or trendy sectors like virtual reality or humanoid robots and instead focus further on its strengths in electric vehicles, batteries, photovoltaics, and high-speed rail to build lasting global competitiveness.

Second, universities should move beyond chasing papers and rankings and instead strengthen ties with industry to ensure research is quickly turned into real technologies and practical applications. Building an integrated ecosystem of industry, academia, and research will help China use its academic resources more effectively, avoid duplicated R&D across firms, and boost the efficiency and capacity of the entire sector.

AMRC synergy drives industrial innovation

During the interview, Dr. Ma highlighted the Advanced Manufacturing Research Center (AMRC) at the University of Sheffield, UK. His book “Made-in-China Made China.” also describes how the UK recognized the importance of manufacturing and made adjustments.

During the book sharing session, Dr. Zhaoyuan Ma introduced his authored work, “Made-in-China Made China.” (Photo By Beijing United Publishing Co., Ltd.)

In the UK’s typical Rust Belt region—the industrial area of Northwest England—the Industrial Revolution first began in cities such as Manchester, Sheffield, and Liverpool. Sheffield is also the birthplace of stainless steel, which was invented in one of the city’s factories.

At the University of Sheffield, the AMRC is not a traditional lab but a platform that bridges the “valley of death” between research and industry. Its strength lies in synergy: universities contribute research and talent, engineering teams turn findings into viable technologies and prototypes, and companies provide market needs and investment.

This creates a closed-loop process in which industry sets the demand, universities provide research support, engineering teams achieve application breakthroughs, and industries adopt the results.

Major firms like Boeing, McLaren, and Rolls-Royce present manufacturing challenges that over 800 AMRC engineers work to solve, turning Sheffield’s research into market applications. The platform also supports small and medium-sized enterprises in upgrading technologies and processes, reducing barriers to innovation.

Through this model, Sheffield, once devastated by de-industrialization with unemployment falling to just four percent, achieved industrial revival. High-end manufacturers established factories around the AMRC, creating an integrated industry, university, and research ecosystem, and employment rebounded to 86 percent.