Digital Technology: The Catalyst for New Industrialization
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In today's fast-paced world, digital technologies are rapidly evolving, deeply integrating into every sector of society, and becoming a critical variable driving transformative change. They are also serving as a strong driving force for a new type of industrialization. As technology continues to advance, the opportunities it presents for modernization and sectoral development cannot be overstated.
Recently, Jin Zhuanglong, the Minister of Industry and Information Technology in China, underscored the importance of establishing a sound institutional framework to promote the deep integration of the real economy and the digital economy. Furthermore, he emphasized the necessity of refining policies that advance both the industrialization of digital technology and the digitalization of industries. This strategic choice is aimed at seizing new opportunities presented by the latest round of technological revolutions and industrial transformations; it represents an inevitable requirement for building a modern industrial system, which is key to pushing forward the new industrialization process.
The application of industrial internet has now permeated all major industrial categories, highlighting the increasingly significant role of the digital economy. The construction of new infrastructures like 5G networks and gigabit optical networks is ongoing and lays the groundwork for modern industrialization. As of the end of July this year, three major telecom companies reported a total of 656 million fixed broadband internet users in China. Additionally, the number of cellular IoT terminal users reached 2.547 billion, making up 59% of all mobile network connections. The advent of 5G has also significantly improved connectivity, with mobile phone users amounting to 950 million.
The synergy between a manufacturing powerhouse and the growth of the digital economy, along with industrial informationization, has effectively elevated the modernization level of the industrial system. Song Yingchang, the deputy director of the Information and Software Industry Research Institute at the China Electronic Information Industry Development Research Institute, outlined several characteristics of the new type of industrialization being empowered by digitalization.
Firstly, the production factors now emphasize data's multiplicative role in the industrialization process. The essence of the new technology system requires the comprehensive integration of digital technology and manufacturing technology, injecting dynamic growth momentum into the new type of industrialization. Secondly, production methods are becoming increasingly networked and intelligent, leveraging knowledge to vastly enhance production efficiency. Thirdly, the industrial ecosystem is moving toward platformization and group chain integration, requiring enterprises to streamline their organizational structures and achieve integrated platforms for business processes and collaborative decision-making.
A growing number of enterprises are proactively utilizing digital technologies to propel new types of industrialization. For instance, Anhui Haibo Intelligent Technology Co., Ltd. has harnessed advanced technologies, including 5G, big data, cloud computing, and artificial intelligence, to develop its autonomous driving solution dubbed "Hui Nuo Zhi Kuang", establishing the world's first autonomous driving project in a cement mine that meets international advanced standards. Similarly, Inspur Yunzhou Industrial Internet Co., Ltd. applied its expertise to the luggage and leather goods industry, creating a collaborative management application system that harmonizes identification and supply chains. This innovation led to a 10% increase in the accuracy of order tracking information while enhancing production procurement coordination by 30% and lowering procurement costs by 2%.
Moreover, artificial intelligence (AI) technology has introduced new momentum for modern industrialization. Jin Zhuanglong asserted that to empower a new type of industrialization with AI, the focus should be on intelligent manufacturing. This involves laying a solid technical foundation in terms of computing power, algorithms, and data, while nurturing several universal and industry-specific large models.
In line with this, Luo Wenshan, deputy director of the Anhui Provincial Department of Industry and Information Technology, elaborated on a newly drafted action plan dedicated to empowering industrialization through artificial intelligence in Anhui. The plan promotes an "Artificial Intelligence +" initiative aimed at developing an ecosystem combining large models with software development. As a result, the province has cultivated a range of AI model products, with over 9.5 million devices connected to 48 key industrial internet platforms, creating around 28,000 industrial applications and serving nearly 200,000 enterprises.
The Ministry of Industry and Information Technology revealed plans to accelerate the extensive and comprehensive application of a new generation of information technologies. This will involve setting benchmarks for enterprises at a micro level, facilitating digital upgrades in industrial enterprises above a certain scale and those classified as specialized and innovative small and medium-sized enterprises. At the chain level, the ministry aims to promote a sequential transformation that focuses on key industries and industrial chains, constructing a digital transformation landscape. On a broader level, there is a vision to create high-standard digital parks and intelligent clusters, with the goal of developing around 200 such parks by 2027.
Song Yingchang suggested that the government should play a crucial role in enhancing top-level design, innovating institutional mechanisms, increasing financial support, and strengthening talent development. By expanding the workforce involved in digital transformation services, establishing benchmarks among leading companies, and enhancing the transformative capability of small and medium enterprises, the goal is to boost the potential and vitality associated with digital transformation. In addition, there is a compelling need to broadly integrate resources and ensure a supportive service chain that facilitates continuous empowerment for digital transformation endeavors.
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