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China offers state giants funding and incentives to accelerate factory AI

Beijing's state-asset regulator wants central state-owned firms to put AI into every part of manufacturing — research, production and management — with stronger funding and performance incentives to get there.

China’s state-asset regulator is calling for stronger funding support and performance incentives as it pushes centrally administered state-owned companies to accelerate AI adoption across research, production and management, MLex reported on Tuesday.

The State-owned Assets Supervision and Administration Commission (SASAC) directed the central enterprises to speed AI adoption across all areas of manufacturing following a special Party committee meeting held on 20 September, building on an earlier session on 17 September, the Beijing Times reported on Monday. The directive sets out concrete measures to grow what officials called advanced manufacturing, including intelligent upgrades across the full cycle of research and development, production and management.

SASAC grouped its instructions around five areas where central enterprises are expected to advance: technology, industrial structure, production methods, manufacturing models and business formats. On the technology front, firms are being asked to take on a batch of new national science and technology projects, carry out flagship research tasks, and build new pilot-scale testing platforms to move toward more self-reliant, high-end technical routes. On industrial structure, the commission urged enterprises to expand emerging industries, cultivate future industries, and upgrade traditional sectors while moving up supply and value chains.

The move follows a national advanced-manufacturing conference at which Premier Li Qiang called for a deeper “AI + manufacturing” drive, while President Xi Jinping urged stronger, more self-reliant industrial supply chains, according to MLex. To carry out the plan, SASAC said it would support qualified central enterprises in consolidating resources and market positions, help build originators of proprietary technology, and refine assessment incentives and funding support focused on technical research, intelligent transformation and improved industrial layout.

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