Core technologies advance B2

Innovation seen boosting manufacturing sector

China’s innovation in core technologies has helped manufacturing enterprises become more competitive, and the government is speeding up the integration of information technology with the manufacturing sector, the Xinhua News Agency reported over the weekend.

In recent years, following an increased focus from government officials on innovation in core technologies, Chinese companies have been making substantial progress in developing core technologies.

At the 19th China International Industry Fair in Shanghai in November, Shenyang Machine Tool (Group) debuted its “i5OS” intelligent control system, a smart operating system for industry, according to Xinhua.

“The i5 is actually five ‘i,’ standing for five English words: industry, information, Internet, intelligent and integrate,” Guan Xiyou, chairman of the company, told Xinhua. “We spent 10 years developing the system and have complete intellectual property rights for it.”

Thanks to the core technology with multiple patents, i5 smart machine tools have received over 20,000 orders. Over 50 agreements have been signed to build smart factories nationwide. The firm plans to establish over 30 intelligent manufacturing valleys within the next three years.

Shenyang Machine Tool is just one of the many Chinese firms that have been investing heavily in research and development (R&D). Total investment by Chinese companies in R&D saw the fastest growth in the world in 2016, according to a recent report from the European Commission.

The report showed that Chinese companies’ R&D expenditure in 2016 grew 18.8 percent year-on-year, outpacing US firms’ 7.2 percent growth and EU firms’ 7 percent, according to a separate Xinhua report on Sunday.

The increase in R&D spending comes as China has prioritized industrial upgrading and economic restructuring under the “Made in China 2025” strategy and the Internet Plus Initiative, Xinhua said.

China is also pushing forward “the industrial Internet” strategy, which refers to the convergence of industrial systems with Internet-based technology, such as cloud computing and advanced analytics.

“Industrial companies should build cloud platforms that enable greater interconnectivity both within firms and among the entire industrial chain,” the State Council, China’s cabinet, said in a statement following a meeting in October.

“Market access for products and services in the field will be widened, while companies are encouraged to raise funds through social capital and innovative financial services,” it said.