China’s manufacturing sector is a global powerhouse, with an extensive industrial system that spans a wide variety of sectors. The country boasts 41 major industrial categories, 207 sub-categories, and 666 small categories, covering every manufacturing field classified by the United Nations. Whether it’s electronics, textiles, heavy machinery, or consumer goods, China plays a dominant role on the world stage. In fact, China leads the world in output for over 220 of 500 key industrial products.
In 2023, China’s industrial output reached an impressive 39.9 trillion yuan, contributing 31.7% to the nation’s GDP. Manufacturing alone accounted for 26.2% of GDP, representing roughly 30% of global manufacturing output. These figures reflect China’s essential role in global production, but an equally critical question is: How many manufacturing companies actually operate in China?
The Growing Number of Manufacturing Companies
According to data from the National Organizational Code Information Service Center, the number of manufacturing companies in China surpassed 6 million in 2024. From January to August, the sector saw steady growth, with new companies springing up across the country. Eastern China, long known for its high industrial concentration and mature supply chains, continues to house the largest number of manufacturing enterprises. However, the central region, with its key position connecting the east and west, showed the highest growth rate in the number of companies.
By the end of August 2024, China’s manufacturing companies count had reached 6.03 million, reflecting a 5.53% increase compared to the end of 2023. Among these, 515,300 enterprises are involved in strategic emerging industries, accounting for 8.55% of the total. This segment has grown by 6.35% since 2023, indicating a clear shift toward high-tech and innovation-driven sectors.
Regional Breakdown: Where Are These Companies Located?
- Eastern China: The eastern region remains the hub of Chinese manufacturing, hosting 3.872 million manufacturing companies, which accounts for 64.21% of the national total. Provinces like Guangdong, Zhejiang, Jiangsu, Shandong, and Hebei are key players, collectively housing 3.3905 million companies—56.22% of all manufacturing businesses in China.
- Central China: The central region has emerged as a growth leader. With 1.1339 million manufacturing companies (18.8% of the national total), the area is experiencing the fastest expansion. From January to August 2024, 69,700 new companies were established here, marking a 6.55% increase compared to the end of 2023.
- Western China: The western region, while having a smaller industrial base, continues to grow. The total number of manufacturing companies reached 755,900 (12.54% of the national total), with an additional 37,600 companies established in 2024, reflecting a 5.23% increase from 2023.
- Northeastern China: Though northeastern China has a smaller share of the total, its historical industrial strength remains notable. The region is home to 268,300 manufacturing companies, accounting for 4.45% of the national total. In the first eight months of 2024, 9,900 new companies were established, a 3.87% increase compared to the end of 2023.
The Rise of Strategic Emerging Industries
A key trend driving the growth of China’s manufacturing sector is the rise of strategic emerging industries, which include advanced technologies like artificial intelligence, renewable energy, and biotechnology. As of August 2024, over 8.55% of manufacturing enterprises operate in these high-tech sectors, underscoring China’s pivot towards innovation-driven development. These industries are seeing faster growth compared to traditional sectors, reflecting the country’s strategic focus on upgrading its industrial base.
Conclusion
China’s manufacturing landscape continues to grow in both scale and sophistication. As of August 2024, the country is home to more than 6 million manufacturing enterprises, with significant regional differences in concentration and growth rates. While the eastern region remains the industrial heart of China, the central and western regions are emerging as key areas for new manufacturing ventures. Moreover, the rise of strategic emerging industries highlights China’s commitment to leading the next generation of global manufacturing. These trends not only solidify China’s position as a global manufacturing leader but also signal a continued shift towards more advanced and innovative sectors.
Some people may ask, “How many factories are in China?” This question focuses on the actual number of production facilities. A manufacturing company can own multiple factories, so the number of factories is typically greater than the number of manufacturing companies. With the number of manufacturing companies at 6.03 million, the number of factories will exceed this 6.03 million.
