Technicians inspect the newly commissioned intelligent spinning production equipment at a fiber material production company in Qingdao, east China's Shandong province. (PHOTO: VCG)

By CHEN Chunyou

China will launch a pilot program for technological transformation in manufacturing cities, according to a notice issued by the Ministry of Finance and the Ministry of Industry and Information Technology in early April.

The notice emphasizes the pivotal role of central fiscal funds in catalyzing the technological transformation. Major moves will be implemented during this pilot period, including establishing a series of flagship demonstration projects, and encouraging enterprises to update their equipment, refine their processes and harness digital technologies to empower their growth.

This will drive the transformation and modernization of traditional industries, elevate the manufacturing industry to a high-end, intelligent and environmentally friendly development, and accelerate the cultivation of new quality productive forces.

Prefecture-level cities or above are eligible to apply for the pilot program. Local governments are encouraged to jointly apply with central state-owned enterprises. The varying levels of development across the eastern, central, western, and northeastern regions will be taken into account to ensure a balanced layout.

Pilot cities should select about three leading sectors in manufacturing as the focus of the technological transformation. During the implementation of the pilot program, it is expected that over 80 percent of enterprises above designated size would undergo digital technological transformation. The select industries should align with national strategic development plans and industrial orientations, and reflect the regional industrial foundation and strengths, while possessing features such as large output value and high industrial concentration.

The notice said within the identified key industries for technological transformation, the cities should select leading enterprises, industry leaders and enterprises with crucial roles in the industrial chain. The application and promotion of digital intelligence technology, green technology and innovative products will be accelerated in industrial clusters and sci-tech industrial parks.

Each industry should have at least one leading enterprise or industry champion, and each city should have at least one major project with an investment exceeding 500 million RMB.

The central government will reward each selected city, awarding a grant of no more than 300 million RMB in total.