On August 1, 2025, the Ministry of Industry and Information Technology (MIIT) and other seven Chinese government departments jointly issued the Implementation Plan for the Digital Transformation of the Machinery Industry (2025-2030) (Hereinafter referred to as the “Plan”). This pivotal document outlines a detailed roadmap to accelerate the integration of digital intelligence technologies across this foundational sector.

The machinery industry, a vital component of China’s economy and national security, is characterized by its extensive reach, complex supply chains, and diverse production models. Its digital transformation is critical not only for the sector’s own advancement but also for enabling broader industrial modernization. Building on earlier initiatives such as the “14th Five-year Plan for Smart Manufacturing”, the new Plan addresses the urgent need to accelerate and deepen the adoption of digital technologies across the industry. Despite progress in areas like smart factory development, varying levels of digital maturity among sub-sectors and the rapid rise of AI call for more coordinated and comprehensive guidance.

The Plan advocates a holistic approach to implementing the new development philosophy and advancing new industrialization, with a focus on the following aspects:

  • Main Direction: Smart manufacturing is identified as the primary focus, aiming to achieve quality development, cost reduction, efficiency gains, and value chain reshaping.
  • Core Strategy: Deep integration with next-generation information technologies, emphasizing intelligent products, digitalized production, and smart services.
  • Operation Principle: Promote innovation and controllable security, adopting scenario-based applications and problem-oriented approaches to address practical industry challenges.
  • Key Measures: Develop smart equipment, build smart factories, and expand service digitalization.
  • Long-term Goal: Establish a high-end, intelligent, and green machinery sector to support China’s industrial modernization.

The Plan outlines a two-stage roadmap:

  • By 2027, digital-intelligent technologies will be widely adopted across R&D, production, operations, and maintenance, significantly enhancing digital design, smart manufacturing, and supply chain capabilities.
  • By 2030, the sector will achieve substantial overall advancement in digitalization and intelligence.

The specific targets are listed as follows:

2027 Targets:

  • 50% of enterprises reach Smart Manufacturing Capability Maturity Model (SMCMM) Level 2 or above.
  • Establish no fewer than 200 Excellence-Level smart factories.
  • Cultivate qualified system solution providers and develop at least 200 scenario-based solutions.

2030 Targets:

  • Complete one round of digital transformation in most major enterprises.
  • Achieve data connectivity and collaboration across key industry chains.
  • Achieve deep integration of AI technologies in leading enterprises.
  • 60% of enterprises reach SMCMM Level 2 or above.
  • Build over 500 Excellence-Level smart factories.
  • Establish a secure and controllable supply system for equipment and services.

The Plan addresses two key objectives: the sector’s own digital transformation and enabling other industries’ transition. It deploys 12 key tasks through “Four Major Actions” that focus on three core domains: smart equipment, smart manufacturing, and smart services. The details are as below:

  • Smart Equipment Innovation Action：Develop generic technologies and key components, drive innovation in complete machine integration, and accelerate application of smart equipment
  • Smart Manufacturing Expansion Action: Advance enterprise digital-intelligent transformation, enable digital transformation across supply and industrial chains, and guide the region’s comprehensive digital transformation
  • Smart Service Enhancement Action: Upgrade equipment service capabilities, cultivate smart service scenarios, and leverage equipment data value
  • Foundation Strengthening Action: Improve digital transformation standards, advance digital infrastructure, and enhance network and data security

MIIT will coordinate with competent departments to implement four safeguard measures:

  • Organizational Coordination: Strengthen inter-agency and central-local coordination and mobilize industry and academic resources.
  • Public Service Enhancement: Upgrade testing, certification, and evaluation capabilities and improve smart manufacturing data platforms and assessment systems.
  • Talent Development: Expand training programs for engineers and technicians through national initiatives and skills campaigns.
  • Global Cooperation: Leverage international alliances to promote Chinese standards and equipment, and attract foreign investment in smart factories and R&D centers.

The Plan signifies a critical step in China’s journey towards advanced manufacturing and solidifying the machinery industry’s role as a cornerstone of its industrial modernization efforts. Additionally, the Plan outlines clear opportunities and challenges for foreign enterprises. It offers major market potential in smart equipment, core components, and system solutions for technologically advanced firms, while promoting international cooperation in standards development and R&D investment. However, heightened emphasis on “secure and controllable” supply chains will intensify local competition. Tighter regulations on data flows and cybersecurity will require stronger compliance and faster adaptation of local operations. Hence, foreign enterprises with leading technology and deep localization will be best positioned to compete. SESEC will continue to monitor the implementation progress of this Plan and provide timely updates and analysis on its development.

 

Chinese sources of the article: https://www.miit.gov.cn/zwgk/zcwj/wjfb/tz/art/2025/art_5669b7e2b4084b7094abb00e7271b7ca.html

https://www.miit.gov.cn/zwgk/zcjd/art/2025/art_e6260412044344eba74a1b620c1803a1.html

https://www.miit.gov.cn/zwgk/zcjd/art/2025/art_452390716a2a40359001515385f6bf07.html