China Sets New Digital and IT Targets to Shape the Future of Its Manufacturing Sector

Zhu Yanran / Yicai

2016-12-09

(Yicai Global) Dec. 9 – China will target more than 20 percent penetration rate for digital workshops and smart factories within its manufacturing sector by 2020 under a five-year plan.

A batch of competitive and key smart manufacturing technologies and equipment should be developed so that more than 50 percent of domestic market demand could be met, says the five-year plan issued by the ministry of industry and information technology.

Core supporting software for smart manufacturing should also be developed in order to be able to meet more than 30 percent of domestic market demand. The penetration rate of digital research and design tools should exceed 70 percent among companies in key manufacturing fields, and more than 50 percent of key procedures should be digitally overseen.

The plan encourages the establishment of various types of market-oriented smart manufacturing development funds and encourages private venture capital and equity capital to invest in smart manufacturing. It also calls for equipment manufacturing firms to expand direct financing to reduce financial costs.

The smart transformation of the manufacturing sector will bring opportunities for the smart equipment industry as companies will need software, systems, key parts and complete sets of equipment for technological upgrade, which will help promote such industries' development, said Wang Ying, deputy head of equipment industry department at Saidi Research Institute at the ministry of industry and information technology.