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The Rise of Chinese Manufacturing: From Supporting Role to Center Stage, Smart Home Leads a New Global Trend

"Made in China" once suffered from a poor image in the international market, but it has since achieved a remarkable transformation driven by innovation and quality upgrades. Domestic brands are excelling in sectors such as automobiles and consumer electronics, with the smart home market proving to be a particular highlight; products like the TCL "Little Blue Wing" P7 Ultra AI health air conditioner exemplify the formidable strength and future potential of Chinese manufacturing.

Once upon a time, “Made in China” was often labeled as “low-priced,” “imitative,” and “supporting role” in the international market. Domestic products relied on cost advantages to seize the low-end market, but struggled to compete with overseas giants in core technologies, brand premiums, and user experience. When purchasing home appliances, automobiles, or electronic products, consumers often prioritized Japanese, German, or American brands, leaving domestic brands to survive by focusing on “cost-effectiveness.”

Images of the development history of domestic manufacturing

However, with the rapid development of Chinese technology, this landscape is being completely overturned. From “following” to “keeping pace,” and then to “leading,” domestic manufacturing, driven by innovation and quality upgrades, has achieved a magnificent transformation from supporting role to leading position in the global market.

Today, in the automotive, television, and mobile phone sectors, domestic brands not only dominate the domestic market but are also expanding overseas. Smart home technology, as an emerging sector, is a prime example of the rise of Chinese manufacturing. The transformation of Chinese manufacturing is a history of struggle, from imitation to innovation, from low-end to high-end. From the 1990s to the early 21st century, China, leveraging its labor dividend and industrial chain advantages, became the “world’s factory,” but most companies remained at the OEM and low-price competition stage. Products lacked core technologies, and brand influence was weak. Taking the home appliance industry as an example, the domestic market was almost monopolized by foreign brands such as Panasonic, Siemens, and Samsung, forcing domestic brands to compete for market share through price wars. The turning point came in the last decade. With the advancement of national strategies such as “Made in China 2025,” Chinese companies increased their R&D investment, achieving breakthroughs in cutting-edge fields such as 5G, artificial intelligence, and new energy. In the automotive industry, BYD, through its top-tier battery technology and electrification platform, became the world’s top-selling electric vehicle brand; emerging brands like XPeng and Wenjie, with their intelligent driving and user experience, directly competed with Tesla. Later, China’s automobile exports surpassed Japan’s, becoming the world’s largest, with new energy vehicles accounting for over 30%, reversing the stereotype that “domestic cars are inferior to joint venture cars.” In the consumer electronics sector, domestic TV brands like TCL, through innovations in display technologies such as Mini LED and QLED, have achieved picture quality and design comparable to LG and Samsung. Mobile phone brands like Huawei and Xiaomi, relying on imaging and unique system optimization, offer user experiences that are in no way inferior to iPhones and Samsung phones. These examples demonstrate that domestic manufacturing has shifted from “winning with price” to “winning with quality,” and consumer perception has changed accordingly: Accenture research shows that over 70% of Chinese consumers prioritize domestic brands when purchasing high-end products. Behind this shift is the result of domestic companies’ commitment to long-termism. They are no longer satisfied with short-term profits but instead focus on in-depth technological research and development and building a closed-loop ecosystem. Taking smart homes as an example, as a key scenario in the Internet of Things era, domestic brands have taken the lead in deploying AIoT (Artificial Intelligence of Things), deeply integrating hardware and software to meet users’ needs for health, convenience, and personalization. This is the core driving force behind domestic manufacturing’s move from a supporting role to a leading position. Smart home technology is a new frontier in global technological competition. According to Statista, the global smart home market is projected to exceed $180 billion by 2025. Initially, this sector was dominated by overseas internet giants like Amazon and Google, who entered the market through smart speakers. However, domestic brands, with their deep understanding of local needs and rapid iteration capabilities, have achieved a “leapfrog development.” The development of smart homes in China can be divided into three stages: the 1.0 era (2010-2015), characterized by single smart products with limited functionality and severe homogenization; the 2.0 era (2016-2020), where ecosystem interconnection became the focus, but the user experience still relied on manual settings; and the 3.0 era (2021-present), driven by AI, with products shifting from “passive response” to “proactive service,” and health and energy efficiency becoming core selling points.

TCL Little Blue Wing P7 Ultra AI Healthy Air Conditioner Image

TCL air conditioners are a typical example in this process. Founded in 1999, TCL initially established itself in the market with its “reliable quality,” but its true rise began with its forward-looking layout for intelligent technology. Starting with the launch of its first smart air conditioner in 2015, TCL gradually integrated voice control, air purification, and other functions; by 2020, it released the “Smart Fresh Air” series and upgraded its brand value proposition to “The Healthy Air Expert Who Understands You.” The newly launched TCL Little Blue Wing P7 Ultra AI Healthy Air Conditioner further integrates AI technology with healthy scenarios, demonstrating the maturity of domestic smart home technology.

The TCL Little Blue Wing P7 Ultra AI Healthy Air Conditioner embodies the technological height of domestic smart home technology.

Its AI sleep function transforms from “passive adjustment” to “active care,” achieving a personalized “unmanned” experience through intelligent sensing and control via the “Eye of Peaceful Sleep.” Dual-circulation fresh air technology ensures consistently fresh air, while one-click AI-powered good air simplifies operation. Smart Gentle Breeze 5.0 eliminates “air conditioning sickness,” AI voice control frees your hands, and AI energy-saving technology promotes green energy efficiency. The future of domestic smart homes lies in product innovation and ecosystem leadership. TCL air conditioners integrate with the HarmonyOS ecosystem, connecting the entire “people, car, and home” chain, constructing a full-scenario, full-space air ecosystem solution. Domestic manufacturing’s leading position in this field is attributed to supply chain collaboration, data dividends, and policy support. Although challenges remain, domestic companies have transformed from followers to rule-makers; this confidence is the foundation for their rise to prominence. Looking back on the path of domestic manufacturing, the transformation from supporting role to leading position stems from a commitment to innovation and respect for users. Domestic manufacturing is using technology as its vessel and experience as its sail, leading the industry towards a broader blue ocean.

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