China Aims to Establish Globally Leading Smart Factories to Drive Digital Transformation of SMEs

Deep News
03/23

At the "Seminar on Digital and Intelligent Transformation of Manufacturing" during the China Development Forum 2026, Su Bo, Vice Chairman of the National Manufacturing Strategy Advisory Committee and former Vice Minister of Industry and Information Technology, highlighted China's historic achievements in advancing its manufacturing sector. Through the deep implementation of smart manufacturing initiatives, China has successfully transitioned from a major manufacturing nation to taking the first strategic step toward becoming a global manufacturing leader. The overall level of manufacturing has steadily risen from low-to-medium to medium-to-high end, with several key sectors now leading globally.

Notably, China has achieved world-leading capabilities in areas such as 5G communications, high-speed rail equipment, shipbuilding, new energy vehicles, and renewable energy equipment like wind and solar power, contributing 50% of global production capacity in these fields.

Su Bo reported that the construction of smart factories in China has evolved from pilot demonstrations to widespread expansion and upgrading, significantly enhancing the overall competitiveness of the manufacturing industry. To date, China has established over 35,000 basic-level, more than 8,200 advanced-level, over 500 excellence-level, and 15 leading-level smart factories.

He emphasized that the digital transformation of manufacturing has spurred the emergence of new technologies, industries, and business models, driving rapid growth in sectors such as manufacturing equipment, industrial software, and smart manufacturing system solutions. This has created a market scale worth five trillion yuan. Additionally, China has released 497 national standards related to smart manufacturing and established more than 500 undergraduate programs in smart manufacturing at universities. International exchanges and cooperation continue to deepen, providing a solid foundation of standards, talent, and global collaboration for the digital and intelligent transformation of manufacturing.

Discussing current industry trends, Su Bo pointed out that the new generation of artificial intelligence is shifting from general large models to industry-specific models. Industrial intelligent agents and embodied intelligence have become core variables in the digital transformation of manufacturing. The integration of these technologies with advanced manufacturing has given rise to a new generation of smart manufacturing technologies characterized by self-perception, self-decision-making, self-execution, self-adaptation, and self-learning, propelling smart manufacturing into a new phase of high-level development.

He clarified that over the next decade, China will remain committed to smart manufacturing as its primary focus, a core direction established 15 years ago when the national manufacturing strategy was implemented. Moving forward, China will prioritize the deep integration of next-generation AI with manufacturing, with a focus on innovation in smart manufacturing systems as the key breakthrough point. Efforts will be made to address shortcomings in foundational industrial intelligence technologies, balance advanced exploration with widespread adoption, and fully develop an upgraded version of smart manufacturing that combines virtual and physical systems, enables autonomous evolution, and ensures safety and efficiency.

By 2030, the goal is to achieve basic digital and networked manufacturing普及 among large-scale manufacturing enterprises, with phased progress in next-generation smart manufacturing innovation. By 2035, the aim is for large-scale manufacturers to widely adopt digital, networked, and intelligent manufacturing, with next-generation smart manufacturing applications leading globally.

To achieve these objectives, Su Bo outlined four key tasks. First, strengthen strategic guidance and improve mechanisms for comprehensive advancement, creating a framework and development pathway for the new generation of smart manufacturing, while summarizing effective experiences to support its升级.

Second, promote innovation in smart manufacturing technologies and equipment, enhance breakthroughs in core technologies, and overcome challenges in areas such as multi-dimensional intelligent perception, industrial AI, and factory operating systems. This will support system integration innovation, accelerate the development of a next-generation smart manufacturing technology system, and produce a range of advanced smart manufacturing equipment.

Third, accelerate the exploration and cultivation of new business models and patterns in smart manufacturing, advance smart factory construction through tiered and classified approaches, establish demonstration benchmarks, and widely promote mature models and solutions to普及 digital and networked manufacturing. Support leading enterprises in adopting technologies like deep learning, large models, and digital twins to create a group of globally leading smart factories, driving the digital and intelligent transformation of small and medium-sized enterprises and fostering new pathways for leapfrog development in smart manufacturing.

Fourth, enhance international cooperation and optimize the development ecosystem for smart manufacturing, continuously update national standards, deepen global exchanges, and actively promote the international development of smart factories, equipment, software, standards, and solutions to elevate China's competitiveness and influence in smart manufacturing globally.

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