The Ministry of Industry and Information Technology and seven other departments jointly issued the "Guiding Opinions on Accelerating the Transformation and Upgrading of Traditional Manufacturing"

　　The Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Education, the Ministry of Finance, the People's Bank of China, the State Taxation Administration, the Financial Regulatory Administration, the China Securities Regulatory Commission, and other eight departments recently jointly issued the "Guiding Opinions on Accelerating the Transformation and Upgrading of Traditional Manufacturing Industry," proposing that by 2027, the level of high-end, intelligent, green, and integrated development of China's traditional manufacturing industry will be significantly improved, effectively supporting the manufacturing industry's proportion to remain basically stable, and further consolidating and enhancing its position and competitiveness in the global industrial division of labor.

　　In the section "Strengthening the intrinsic safety of key industries," it is proposed to increase the promotion and application of safety emergency equipment in key fields, and to implement "mechanization replacing humans, automation reducing humans" in high-risk industries such as civil explosives.

Guiding Opinions on Accelerating the Transformation and Upgrading of Traditional Manufacturing Industry

MIIT Joint Regulation [2023] No. 258

　　Industrial and information technology authorities, development and reform commissions, education departments (commissions, bureaus), finance departments (bureaus) of all provinces, autonomous regions, municipalities directly under the central government, and cities specifically designated in the state plan, as well as the Xinjiang Production and Construction Corps; Shanghai headquarters of the People's Bank of China and branches in all provinces, autonomous regions, municipalities directly under the central government, and cities specifically designated in the state plan; tax bureaus of the State Taxation Administration in all provinces, autonomous regions, municipalities directly under the central government, and cities specifically designated in the state plan; regulatory bureaus of the National Financial Regulatory Administration; dispatched agencies of the China Securities Regulatory Commission; and relevant central enterprises:

　　Traditional manufacturing is the main body of China's manufacturing industry and the foundation of a modern industrial system. Promoting the transformation and upgrading of traditional manufacturing is a strategic choice to actively adapt to and lead a new round of scientific and technological revolution and industrial transformation, an important measure to improve the resilience and security level of the industrial and supply chains, and an inevitable requirement to advance new industrialization and accelerate the construction of a manufacturing power. It relates to the overall construction of a modern industrial system. To accelerate the transformation and upgrading of traditional manufacturing, the following opinions are proposed.

　　I. Development Foundation and Overall Requirements

　　Since the 18th National Congress of the Communist Party of China, under the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, China's manufacturing industry has formed the world's largest scale, the most complete categories, the most complete system, and relatively strong international competitiveness, becoming an important carrier for the transformation of scientific and technological achievements, an important channel for employment absorption, an important source of tax revenue, and an important field for international trade. It has provided strong support to effectively respond to external suppression and the impact of the century epidemic, and made important contributions to promoting stable economic growth. Traditional manufacturing industries such as petrochemical, steel, non-ferrous metals, building materials, machinery, automobiles, light industry, and textiles account for nearly 80% of the added value of the entire manufacturing industry, serving as an important foundation to support national economic development and meet people's living needs. At the same time, the problems of "large but not strong" and "complete but not refined" in China's traditional manufacturing industry remain prominent, with both overcapacity in low-end supply and insufficient high-end supply coexisting. Innovation capability is weak, the industrial foundation is not solid, resource constraints are tightening, and factor costs are rising. There are significant challenges in consolidating and enhancing competitive advantages, requiring accelerated promotion of quality transformation, efficiency transformation, and power transformation to achieve transformation and upgrading.

　　Accelerating the transformation and upgrading of traditional manufacturing should be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly implement the spirit of the 20th National Congress of the Communist Party of China, and the deployment of the National Conference on Promoting New Industrialization. It should adhere to the general tone of seeking progress while maintaining stability, fully, accurately, and comprehensively implement the new development concept, accelerate the construction of a new development pattern, coordinate development and security, adhere to market leadership and government guidance, insist on innovation-driven and systematic promotion, implement the principle of establishing before breaking, balancing support and pressure, carry out manufacturing technology transformation and upgrading projects, accelerate equipment renewal, process upgrading, digital empowerment, and management innovation, promote the transformation of traditional manufacturing towards high-end, intelligent, green, and integrated directions, improve development quality and efficiency, and accelerate the realization of high-quality development.

　　By 2027, the level of high-end, intelligent, green, and integrated development of traditional manufacturing will be significantly improved, effectively supporting the manufacturing industry's proportion to remain basically stable, and further consolidating and enhancing its position and competitiveness in the global industrial division of labor. The popularization rates of digital R&D design tools and CNC rate of key processes in industrial enterprises will exceed 90% and 70% respectively. Industrial energy consumption intensity and carbon dioxide emission intensity will continue to decline. Water consumption per 10,000 yuan of industrial added value will decrease by about 13% compared to 2023, and the comprehensive utilization rate of bulk industrial solid waste will exceed 57%.

　　II. Adhere to Innovation-Driven Development and Accelerate the Move Towards the Mid-to-High End of the Value Chain

　　(1) Accelerate the promotion and application of advanced and applicable technologies. Encourage enterprises as the main body to jointly build R&D institutions with universities and research institutes, increase R&D investment, and improve the conversion rate of scientific and technological achievements. Optimize the layout of national-level scientific and technological innovation platforms in the manufacturing field such as national manufacturing innovation centers, industrial innovation centers, and national engineering research centers. Encourage key common technology research and industrial application demonstration in key areas of traditional manufacturing. Improve the information release and sharing mechanism of scientific and technological achievements, formulate a catalog of advanced technology transformation and application, and build pilot and application verification platforms for technology integration, maturation, and engineering.

　　(2) Continuously optimize industrial structure. Promote the strengthening of advantages in traditional manufacturing fields, advance the strengthening, extension, and supplementation of industrial chains, strengthen innovation and iteration of new technologies and new products, improve the industrial ecosystem, and enhance the competitiveness of the entire industrial chain. Support traditional manufacturing to deepen in niche fields, incubate new technologies, explore new tracks, and cultivate new industries. Continue to consolidate the results of "capacity reduction," eliminate backward capacity according to laws and regulations, and resolutely curb the blind launch of high energy consumption, high emission, and low-level projects. Improve the management system for high energy consumption, high emission, and low-level projects, scientifically refine the project management catalog, and avoid a one-size-fits-all approach to traditional manufacturing by industry.

　　(3) Deeply implement the industrial foundation reconstruction project. Support enterprises to focus on weak areas such as basic components, basic devices, basic materials, basic software, basic processes, and industrial technology foundations, accelerate breakthroughs and industrial application, and strengthen the basic support system of traditional manufacturing. Deepen the integrated application of key products and processes, strengthen demand and scenario-driven development, promote interactive development of complete machines (systems) and basic product technologies, support enterprises to implement technological transformation using first sets of equipment, first batches of materials, and first versions of software, and expand the application market of innovative products.

　　(4) Focus on increasing varieties, improving quality, and creating brands. Focus on consumption upgrade demands and weak links, vigorously develop new products in fields such as smart home, green building materials, arts and crafts, elderly products, and infant and child products. Promote positive interaction between supply and demand, increase the supply of high-end products, accelerate product iteration and upgrading, and build a tiered array of Chinese consumer famous products. Implement the excellent quality project, promote enterprises to improve and perfect advanced quality management systems, enhance quality management capabilities, and comprehensively improve product quality. Accelerate the construction of enterprise brands, industrial brands, and regional brands, continuously protect time-honored brands, and create a batch of internationally competitive high-end "Made in China" brands. Promote the upgrading of traditional manufacturing standards, improve enterprise technological transformation standards, and use advanced standard systems to drive quality improvement and product upgrading.

　　III. Accelerate Digital Technology Empowerment and Fully Promote Intelligent Manufacturing

　　(5) Vigorously promote enterprise intelligent transformation, digital transformation, and networking. Based on different industrial characteristics and differentiated needs, accelerate the deep integration of information technologies such as artificial intelligence, big data, cloud computing, 5G, and the Internet of Things with the entire manufacturing process and all elements. Support the digital transformation of production equipment, promote the application of new sensors, advanced control, and other intelligent components, and accelerate the replacement and updating of intelligent equipment and software. Promote the construction of digital workshops and smart factories in a scenario-based manner, explore intelligent design, production, management, and service models, and establish a number of typical benchmarks for digital transformation. Accelerate the digital transformation of small and medium-sized enterprises, and promote pilot projects of intelligent transformation, digital transformation, and networking in SMEs. Improve the standard systems for intelligent manufacturing, integration of informatization and industrialization, and industrial internet, accelerate the promotion of standardization for digital transformation and intelligent manufacturing, enhance public service capabilities for assessment and evaluation, strengthen industrial control system and data security protection, and build a good development ecosystem.

　　(6) Promote networked collaboration of industrial chain and supply chain. Encourage leading enterprises to share solutions and toolkits, driving the overall digital transformation of upstream and downstream industrial chains, strengthening digital management of supply chains and resource sharing within the industrial chain. Promote the "chain-network collaboration" development of the industrial internet and key industrial chains, fully leverage the industrial internet identification and resolution system and platform functions, support the construction of a data-driven, precise matching, and trustworthy interaction industrial chain collaboration model, carry out applications such as collaborative procurement, collaborative manufacturing, collaborative distribution, and product traceability, and build smart industrial and supply chains. Support key industries in building "industrial brains" to gather industry data resources, promote common application scenarios, and serve the entire industry's transformation, upgrading, and governance capacity enhancement.

　　(7) Promote the overall transformation and upgrading of industrial parks and clusters. Upgrade digital infrastructure in national high-tech zones, science and technology industrial parks, etc., build public service platforms, explore shared manufacturing models, and implement comprehensive digital transformation. Led by national advanced manufacturing clusters, promote the digital transformation of industrial clusters, facilitate online resource availability, flexible production capacity, and industrial chain collaboration, enhancing comprehensive competitiveness. Explore the construction of regional artificial intelligence data processing centers to provide massive data processing, generative AI tool development, and other services, promoting AI empowerment of traditional manufacturing. Explore organizational forms such as platformization and networking, develop virtual parks and clusters across physical boundaries, and build a new industrial digital ecosystem combining virtual and real.

　　4. Strengthen green and low-carbon development, deeply implement energy-saving and carbon reduction transformation.

　　(8) Implement carbon peak actions in key areas. Implement carbon peak plans in the industrial sector and key industries such as non-ferrous metals and building materials, improve industrial energy-saving management systems, and promote energy-saving and carbon reduction technology upgrades. Conduct evaluations of capacity replacement policy implementation, improve cross-regional capacity replacement mechanisms, and provide appropriate capacity replacement ratio policy support for technology upgrade projects with high energy efficiency and low carbon emissions. Actively develop and apply green low-carbon materials such as non-food bio-based materials. Establish and improve carbon emission accounting systems, accelerate the establishment of product carbon footprint management systems, carry out coordinated innovation in pollution reduction and carbon reduction, and pilot demonstration projects for carbon capture, storage, and comprehensive utilization. Orderly promote coal reduction and substitution in key industries, reasonably guide industrial gas consumption growth, and improve the electrification level of industrial end-use energy.

　　(9) Improve green manufacturing and service systems. Guide enterprises to implement green transformation, vigorously promote green design, develop and promote green products, and build green factories, green industrial parks, and green supply chains. Formulate and revise a batch of standards in key areas such as low carbon, energy saving, water saving, comprehensive resource utilization, and green manufacturing to promote resource conservation and rational material application. Actively cultivate green service organizations to provide services such as green diagnosis, R&D design, integrated application, operation management, evaluation certification, and training. Develop green and environmentally friendly equipment such as energy-saving and water-saving, advanced environmental protection, comprehensive resource utilization, and remanufacturing. Strengthen green manufacturing benchmarks to drive more enterprises toward green transformation.

　　(10) Promote efficient recycling of resources. Develop and implement strategic resource industry development plans by category, cultivate and create demonstration bases and enterprises for efficient mineral resource development and utilization, strengthen comprehensive utilization of associated mineral resources, and improve the utilization level of primary resources. Actively promote resource circular production models, vigorously develop comprehensive recycling industries for scrap steel, scrap non-ferrous metals, waste power batteries, waste household appliances, and waste textiles, and promote high-value recycling of renewable resources. Promote large-scale comprehensive utilization of industrial solid wastes such as fly ash and coal gangue, and explore new models for comprehensive utilization of industrial solid waste in areas with concentrated industrial solid waste generation, major coal production areas, and basic raw material industry clusters. Promote industrial wastewater recycling and improve intensive and economical use of industrial water resources.

　　(11) Strengthen intrinsic safety in key industries. Guide enterprises to renovate toxic, harmful, and abnormal temperature production and operation environments to improve work comfort, and improve safety production conditions through technological transformation. Deepen "Industrial Internet + Safety Production" to enhance safety production perception, monitoring, early warning, handling, and evaluation capabilities. Increase the promotion and application of safety emergency equipment in key areas, implement "mechanization replacing humans and automation reducing personnel" in high-risk industries such as civil explosives. Support comprehensive technical renovation of old petrochemical facilities, cultivate smart chemical parks, and orderly promote the relocation and renovation of hazardous chemical production enterprises in densely populated urban areas and the "relocation, renovation, and closure" of chemical enterprises along the Yangtze River Economic Belt.

　　5. Promote industrial integration and mutual promotion, accelerate the cultivation of new business formats and new models.

　　(12) Promote coupled development of industries. Promote coupled development of petrochemical, steel, non-ferrous metals, building materials, power, and other industries, promote models such as integrated steel and chemical production, refining and chemical integration, and resource collaborative utilization, drive seamless connection, mutual supply and demand, and interconnection of production facilities between industries, achieve hierarchical utilization of energy and resources and industrial circular linkage. Vigorously develop biomanufacturing, enhance innovation capabilities in core strains, high-performance enzyme preparations, and other underlying technologies, improve advanced technology equipment levels such as separation and purification, and accelerate the integration and application of biotechnology in food, medicine, chemical, and other fields. Support the application of new functional fibers in medical, new energy, and other fields. Build cross-industry communication and docking platforms, deeply explore demand pain points, encourage enterprises to carry out cross-industry cross-application of technical products, expand the value space of technical products, and create a batch of typical cases.

　　(13) Develop service-oriented manufacturing. Promote deep integration of traditional manufacturing and modern service industries, cultivate and promote new models and new scenarios such as personalized customization, shared manufacturing, full lifecycle management, and total integration and contracting in traditional manufacturing. Promote deep integration of industrial design and traditional manufacturing, facilitate design optimization and improvement, create a batch of national industrial design centers, industrial design institutes, and industry-specific and professional creative design parks, promote digital, intelligent, and precise development of warehousing and logistics services, enhance inspection and testing service capabilities in major technical equipment, new materials, and other fields, cultivate innovative production-oriented financial services, and improve support for the transformation and upgrading of traditional manufacturing.

　　(14) Continuously optimize industrial layout. Support the transformation and development of old industrial bases, accelerate industrial structure adjustment, and cultivate new drivers of industrial development. According to the guidance on promoting orderly transfer of manufacturing and the manufacturing transfer development directory, fully leverage local resource endowments and industrial foundation advantages, combine industrial chain supporting demands, and orderly undertake industrial transfer to improve the capacity to undertake transfers and layout productivity differentially. Cultivate a batch of advanced manufacturing clusters and small and medium-sized enterprise characteristic industrial clusters with distinct leading industries and strong market competitiveness in traditional manufacturing advantage areas. Support international capacity cooperation with countries involved in jointly building the "Belt and Road," leverage carriers such as China-foreign SME cooperation zones, and promote coordinated export of technology, equipment, standards, services, and more.

　　6. Increase policy support efforts and create a favorable development environment.

　　(15) Strengthen organizational leadership. Under the leadership of the National Manufacturing Power Construction Leading Group, strengthen strategic planning, overall coordination, and major issue research, and accelerate the implementation of major tasks and policies. Regions and departments coordinate and collaborate, encourage industry- and region-specific implementation plans, refine work measures, introduce supporting policies, and ensure effective promotion and implementation, forming a batch of excellent cases and typical experiences. Fully leverage the bridging role of intermediary organizations such as industry associations, strengthen policy promotion, industry monitoring, decision support, and enterprise services.

　　(16) Increase fiscal and tax support. Increase funding support for manufacturing technology transformation, focusing on accelerating intelligent transformation, digital transformation, networking, and connectivity in traditional manufacturing, and coordinate the promotion of high-end, intelligent, green, and integrated upgrades. Implement tax preferential policies to support high-quality development of manufacturing. Support traditional manufacturing enterprises in participating in the cultivation and evaluation of high-tech enterprises, specialized and innovative SMEs, and fully enjoy fiscal rewards and subsidies according to regulations. Implement corporate income tax credit policies for the purchase of special equipment used for environmental protection, energy saving, water saving, and safety production, guiding enterprises to increase investment in software and hardware equipment.

　　(Seventeen) Strengthen financial services. Fully utilize existing related re-lending to provide preferential interest rate funding support for key projects in the transformation and upgrading of traditional manufacturing that meet the conditions. Leverage the role of national industry-finance cooperation platforms, industrial enterprise technology transformation and upgrading guidance plans, and other policies to guide banking institutions to increase credit support for the transformation and upgrading of traditional manufacturing according to market-oriented and rule-of-law principles, optimizing related financial products and services. Encourage industrial investment funds to increase equity investment support for traditional manufacturing. Utilize the multi-level capital market to support qualified traditional manufacturing enterprises in technological transformation or increased R&D investment through various financing methods such as stocks and bonds, and achieve transformation and upgrading through mergers and acquisitions.

　　(Eighteen) Expand talent supply. Optimize the professional settings of secondary vocational, higher vocational, and vocational undergraduate programs related to traditional manufacturing, fully practice the Chinese characteristic apprenticeship system, encourage the establishment of long-term mechanisms such as school-enterprise cooperative education, training, and internship and practical training base construction, and expand the scale of high-quality technical and skilled talent cultivation. Implement the "Manufacturing Talent Support Plan," promote the construction of new engineering disciplines, plan and build a number of future technology colleges, modern industry colleges, and specialty colleges, establish "National Excellent Engineer Practice Bases," and cultivate a group of digital transformation talents, advanced manufacturing technology talents, advanced basic process talents, and engineers with outstanding technological innovation capabilities and problem-solving skills for complex engineering issues in the traditional manufacturing field.

Ministry of Industry and Information Technology

National Development and Reform Commission

Ministry of Education

Ministry of Finance

People's Bank of China

State Taxation Administration

Financial Regulatory Authority

China Securities Regulatory Commission

December 28, 2023