You might think that the cost of workers or the amount of energy used would be the big deals in manufacturing. But guess what? It's all about how smart and advanced the technology is. Let's dive into the Chinese manufacturing scene from 2000 to 2021 to see how tech is the real game-changer. Imagine you're looking at a graph. It shows that the more advanced the tech, the better the economic performance. But here's a twist: it's not a straight line. It's more like a U-shape, which means things get complicated at some points.

You'd think that as workers get paid more, the economy would do better, right? Not really. The data shows that this doesn't have a big impact. But when it comes to tech, it's a different story. In the eastern and central parts of China, tech progress helps the economy a lot. It's like giving the manufacturing industry a big boost.

Now, let's talk about the western region. It's a bit different there. The relationship between tech and manufacturing performance is also U-shaped. This means there's a lot going on behind the scenes that we need to understand better.

So, what's the bottom line? Tech is the superhero here. It helps the manufacturing industry stay strong even when costs go up. To keep growing and staying resilient, China needs to keep investing in science and technology. It's like giving the industry a powerful toolkit to face any challenge.

The Hidden Power of Tech: Boosting Chinese Manufacturing

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