Major equipment upgrades in China's traditional industries are set to drive increased investment and facilitate high-end development through the adoption of more advanced, cost-effective technologies.
China is a global manufacturing powerhouse, with its manufacturing sector accounting for 26.2 percent of the country's GDP in 2023 and contributing approximately 30 percent to the world's total manufacturing added value. Traditional industries - including petrochemicals, steel, nonferrous metals, building materials, machinery, light industry, and textiles - comprise over 80 percent of China's manufacturing output.
These industries are poised for a major shift, as equipment upgrades are expected to spearhead their transformation toward smarter, greener operations.
"Upgrading industrial equipment - including advanced machinery, digitalization, the adoption of green technologies, and safety enhancements - will effectively foster technological advancements, process upgrades, energy conservation, and production safety, especially in traditional industries. This transformation will drive high-end, intelligent, and green development across the sector," said Fan Meng, a director with the Industrial Investment Research Office of the Planning Research Institute of CCID Consulting at the Ministry of Industry and Information Technology (MIIT).
Despite the significant progress made to date, many enterprises still face long equipment renewal cycles, with much of their operational machinery outdated and inefficient.
Widespread equipment upgrades across the manufacturing sector will not only improve production efficiency and product quality, but also eliminate safety risks associated with aging equipment, helping businesses meet higher safety and quality standards.
"China's industrial equipment investment reached 4.4 trillion yuan (about 608 billion U.S. dollars) in 2023, accounting for over 70 percent of the nation's total equipment investment. According to new policies, industrial equipment investment is projected to grow by more than 25 percent by 2027, creating an estimated demand exceeding 10 trillion yuan (about 1.38 trillion U.S. dollars) over the next three years," said Gong Tianxiao, deputy director of the Institute of Information and Industrialization Integration of the China Academy of Information and Communications Technology (CAICT), referring to the targets and measures published by the Chinese government in April this year for industrial equipment upgrades to expand effective investment and develop new quality productive forces.
Equipment upgrades to fuel investments, industrial transformation in China
