Whenever China is facing major changes in the external environment, expectations for the development of the manufacturing sector will be more urgent. Prior to the crossroads to make a choice, to recognize the status quo, reviewing the development and manufacturing of the painful lessons of success Control Engineering Copyright , to follow the law of development, scientific decision-making in order to lead the Chinese manufacturing towards a better tomorrow. First obvious question is how China to the development of the manufacturing sector. Through the transformation and upgrading of the manufacturing chain of evidence, can form a relatively complete and objective judgment of the situation to upgrade the manufacturing sector. Manufacturing transformation and upgrading, will inevitably involve investment, production and product three links, three links constitute evidence Observer manufacturing transformation and upgrading. Investment sectors: R & D investment and patent China R & D investment accounted for in GDP has exceeded the level of many developed countries, much higher than in developing countries. The study found that China’s R & D expenditure accounted for only 0.7% of GDP in 1991, far below the world average; by 2010 the R & D intensity has been higher than the median of the Organization for Economic Cooperation and Development countries, 2012 then in one fell swoop than the OECD average of 1.9% R & D intensity. 2017 China’s R & D intensity has reached 2.11%, above the level of many developed countries. In addition to the overall development situation of the whole society, to see the inside of a separate manufacturing R & D investment is growing very rapidly. Manufacturing industry sub-segment 31 between 2006 and 2016 manufacturing industry investment in R & D personnel and financial resources to achieve an average annual growth rate of 16.0% and 26.4%, respectively, far higher than the growth rate of manufacturing value added in this period and GDP growth speed. Rapid increase patent quality and quantity. R & D investment is a necessary condition for innovation, but innovation patent may be regarded as the results of inspection activities. Chinese State Intellectual Property Office released data show that China’s number of patent applications increased from 1995 80000-2017 years more than 350 million pieces, an average annual growth rate of almost 19%. From the point of view constituting the patent, the patent can be divided into three categories: invention patent, utility model patents and design patents. Patent technology which is regarded as the highest gold content of a class of patents, and its proportion in all authorized patents has increased from 8% at the time of 1995 to 2017 of 19%, indicating that China’s patent applications not only increase the “quantity” as well as “quality.” Sources from the patent point of view, in 2004 China’s foreign patents licensed to the total proportion of issued patentsMore than 20%, while at the end of 2017 has dropped to about 6%, indicating that the power of innovation from China are playing an increasingly important role. Production processes: intermediate goods intermediate use, concentration and number of high-tech products accounted for businesses to invest in output is an important indicator of increased specialization and division of labor become more efficiency improvement. Specialization further enhanced. Input-output table can be calculated according to the middle of the manufacturing sub-sector accounting for investment products in the industry in the output. The results showed that each sub-sector investment accounted for intermediate goods output in varying degrees of improvement. Even a steady decline in the share of industrial value added process, the industrial sector accounted for intermediate goods increasing investment momentum has not changed, indicating the degree of professional industrial sector is still deepening. The sum of intermediate inputs in the manufacturing sector accounted for the total output rose from 0.735 in 2004, 0.783 in 2014. Eliminated inefficient enterprises, industry concentration increased. Market competition means “survival of the fittest, survival of the fittest.” Enterprises to enter, exit and industry concentration increased allocative efficiency of the industry, while also optimized. Chinese industrial sector industry structure facing “big reshuffle.” Compared to 2010, Control Engineering Copyright , a high number of oligopoly in an industry sector in 2016 increased from 6-9, the number of low-concentrated oligopolistic industry rose from 10-15 . In contrast, the number of competitive industry dropped from 12-5, the sharp drop in the number of low industry concentration. Mining, textiles, general equipment manufacturing industry, there has been a large number of enterprises out of the phenomenon. The number of high-tech enterprises to grow faster. High-tech enterprises is an important carrier of innovation activities. After 2012, even though China’s economic growth slowed sharply in spite of slow industrial added value Control Engineering Copyright , but the number of high-tech enterprises to further improve the growth rate. 1997– During 2007, the number of high-tech enterprises with an average annual growth rate of 14.7%, from 2012 to 2017 reached 22.3%. Dissemination of information, computer services and software industry, scientific research, technical and geological exploration industry ranked among the fastest growing industries. Product link: the complexity of export products, export Zengjiazhishuai from exports in China, China’s manufacturing level far beyond the international average level of current income corresponding stage. Manufacturing exports is a reflection of national capacity and international competitiveness of the mirror. Export dataInspect manufacturing capacity there are a variety of indicators for reference , such as: Export complexity, high-tech exports accounted for and so on. According to the calculation, if the complexity of the export point of view, China’s exports corresponding income from $ 14643 during 2000 to $ 24014 in the corresponding 2014. Export value-added rate continued to improve. We calculate the value chain of production and export of value-added rate based on the findings, China’s export value-added rate is rising, up from 69% in 2000 to 2014 of 84%, the export value of processing trade and general trade which are from 56% and 85% increased to 78% and 89%, respectively, an increase of 22% and 4%. Through the analysis of the export value-added rate of discovery, the export value contribution rate of increase in the maximum effect of the industry, rather than inter-industry effects. This indicates that China’s manufacturing industry technology upgrade path more choice to replace imported intermediate goods, rather than the export of new products. Through the above examination of the evidence chain transformation and upgrading of the manufacturing sector, showing good Chinese manufacturing transformation and upgrading of the overall pattern. It does not require major surgery in the policy. History and International experience shows that high-quality manufacturing development stage of development can not be separated Destructive Enthusiasm, open environment can not be separated, not out of the market economy, nor from infrastructure construction and environment-friendly development provided by the Government. Following the above law of development, China’s manufacturing industry development can be achieved today. China needs to continue to keep an open market economy , need to further improve infrastructure and environment-friendly development. Policy of government in promoting the development of high-quality manufacturing, focusing compensate for market failure. Areas difficult to play a role in the market, it needs government support. Speed up the transfer of land, labor, and capital flows and other factors to create better conditions to facilitate maintenance of fair and competitive market environment, improve infrastructure and services, investment and management improvements in basic science mechanism of the government to lead the development of high-quality manufacturing work main focus.