Beijing has started directing more effort towards digital transformation in the industrial sector, aiming to enhance competitiveness and drive economic growth.
During a recent executive meeting, the State Council approved an action plan to boost digital manufacturing. This plan includes a set of measures to meet industry needs through various scenarios, enhance technological progress, and support efforts from setting standards to building service platforms.
The meeting highlighted that digital transformation is a fundamental pillar for advancing new industries and establishing an advanced industrial system.
Experts noted that as Chinese manufacturers enter a critical phase of digital transformation, modern government policies will provide guidance to expedite the digital shift, facilitate implementation, and foster technological innovation.
Chu Minghao, a professor at Beijing Jiaotong University, emphasized the necessity of digitization in the manufacturing sector to develop modern and high-quality productive forces. He explained that deep integration between the digital economy and the real economy will lead to new forms, models, and services in business.
Over three consecutive years, China has launched pilot projects for smart manufacturing, establishing 421 national-level pilot factories, in addition to over 10,000 digital workshops and smart factories at the provincial level.
Technologies like artificial intelligence and digital twins have been utilized in over 90% of the pilot factories. Fifth-generation technology has been extensively promoted in quality inspection, mining production, and other areas. Industrial internet now spans all key sectors, with over 200 application models created.
The adoption of digital technology has yielded tangible benefits for many manufacturers nationwide. For instance, at times, customers of Jiangxi Huaiyuan Textile Co., Ltd., located in Jiangxi Province in eastern China, may request just one kilogram of fabric samples. However, after operating the machine, the company must produce at least 2000 kilograms. Following a digital upgrade costing over 10 million yuan (about 1.41 million US dollars), the company significantly reduced production waste and costs.
Gao Wengen, the manager of Huaiyuan, stated that the company can now produce grams of fabric at the same cost of producing tons.
These digital transformations led to a 9% decrease in total energy consumption in high-energy-consuming industries in Jiangxi over the past two years, compared to the early period of the Thirteenth Five-Year Plan (2016-2020). The province aims to achieve digital transformation in over 10,000 companies within nearly two years time.
The State Council meeting affirmed support for digital transformation of small and medium-sized enterprises, particularly encouraging them to update their equipment and technologies.
Chu called for the development of specialized technology companies capable of providing tailored and cost-effective digital transformation solutions designed to meet the needs of small and medium-sized enterprises.
During a recent inspection tour in Zhejiang Province in eastern China, a major manufacturing base, Chinese State Council Vice Premier Zhang Guoqing emphasized the importance of supporting digital transformation for small and medium-sized enterprises.
Zhang stated that Beijing will enhance general services for small and medium-sized enterprises and assist them in improving their business advantages, empowering the most innovative companies to emerge, utilize advanced specialized technologies, and develop new and unique products.
