By?CHEN?Chunyou

China will increase industrial equipment investment by more than 25 percent by 2027 compared to 2023. The utilization rate of digital R&D and design tools will exceed 90 percent in major enterprises, and more than 75 percent of the key production processes will be numerically controlled.

This is the goal of an industrial equipment renewal action plan co-released in early April by seven government departments, including the Ministry of Industry and Information Technology (MIIT), the National Development and Reform Commission and the Ministry of Finance.

Four measures will be implemented:advanced equipment renewal, digital transformation, green equipment promotion, and safety level improvement.

According to the MIIT, industrial equipment renewal will drive investment and enhance advanced manufacturing capacity, which is vital to the construction of a modern industrial system.

Digital transformation will cover all industrial enterprises above designated level in major industrial provinces, cities and key industrial parks. Production capacity below the benchmark level of energy efficiency in key industries will be phased out, and the energy efficiency of major energy-consuming equipment should meet the basic energy conservation requirement.

The action plan calls for eliminating outdated production equipment such as inefficient agricultural and construction machinery. Enterprises in aviation, photovoltaics, power batteries and biological fermentation are encouraged to purchase advanced, high-tech and efficient equipment.

To push digital transformation, it stresses widespread application of technologies, such as AI, 5G and edge computing in the manufacturing process.

Special reloans by financial institutions will be set up for sci-tech innovation and technological transformation, and preferential tax policies will be also in place, as per the document.