According to a report by China Daily on February 22
BEIJING — China’s push to digitize its manufacturing sector has moved into a stage of large-scale deployment, with the vast majority of major industrial enterprises now completing digital upgrades, according to a new industry report.
The report, released by the China Academy of Information and Communications Technology (CAICT), indicates that China’s manufacturing digital transformation has shifted from pilot programs to broad-based adoption across industries.
As of December 2025, 89.6% of large industrial enterprises had implemented digital retrofitting or smart manufacturing upgrades.
Sector Leaders in Digital Adoption
Digital transformation has advanced particularly rapidly in several key sectors:
Automotive manufacturing: 94.4% digital upgrade rate
Shipbuilding: 94.2%
Electronic information manufacturing: 93.9%
These figures suggest that China’s core industrial supply chains are increasingly integrated with smart production systems, industrial internet platforms, and data-driven management tools.
A notable example is China’s intelligent factory model in Chongqing, including facilities such as the digital plant for the AVATR new energy vehicle operated by China Changan Automobile Group, reflecting the country’s accelerating shift toward smart and green production.
From Pilot Projects to Scaled Deployment
According to CAICT engineer Jiao Beibei, digital transformation is becoming a critical driver of:
Operational efficiency
Supply chain resilience
Energy optimization and green manufacturing
The report emphasizes that the next phase of development should focus on aligning digital tools more closely with companies’ operational needs and broader industrial upgrading goals. It also calls for stronger support in areas such as:
Technical standards
Industrial infrastructure
Digital ecosystem development
Strategic Implications
For global investors and multinational companies, the data signals that China’s manufacturing sector is no longer experimenting with digitalization — it is institutionalizing it at scale.
The high penetration rate suggests that future competition may increasingly center on advanced analytics, industrial AI integration, and cross-border supply chain digital connectivity rather than basic automation.