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Promotion of smart factories in China showing different phases depending on the region

People's Daily Japanese Edition 15 January 2026 10:00


According to the '2025 China Industrial Belt Development Trend Report' released in Beijing on the 13th, the smart manufacturing of factories across China's industrial belts varies by region, with the eastern area being 'advanced', the central area 'rapid', and the western area 'extensive'.


Specifically, the eastern area (Guangdong, Zhejiang, Jiangsu) is leading in promoting digitalisation, shifting from manufacturing centres to the core of consumer demand. In the central area (Henan, Anhui, Hubei, Hunan, Jiangxi), digitalisation is progressing at the fastest pace, with 'specialised, refined, distinctive, innovative' enterprises emerging intensively. In the western area (Sichuan, Chongqing, Shaanxi), the coverage of digitalisation continues to expand, and competitive fields in distinctive categories are being subdivided using AI.


According to reports, market orders are now increasingly concentrating on high-quality industrial belts that combine efficiency and reliable delivery capabilities. Yiwu City in Zhejiang Province (household goods, daily necessities, cultural and creative products, toys) efficiently manages the enormous amount of fragmented orders by leveraging data to find necessary products, smartly arranging materials and production based on production plans, and using flexible rapid response abilities. Guangzhou (women's clothing, cosmetics) and Shenzhen (digital products) in Guangdong Province are achieving stable deliveries within their respective vertical sectors.


Furthermore, the role of factories is currently shifting from production outsourcing to branding, with the emergence of factory-owned brands becoming a new point of focus. Small and medium factories are utilising AI agents to connect directly with buyers worldwide. Additionally, high value-added manufacturing is moving in an orderly manner towards the central and western regions.


Furthermore, the factories, as sources of supply, are currently shifting phases from the traditional style reliant on experience and scale to a user-centred, AI-driven smart management system. The role of AI is being upgraded from a 'business partner' that reduces costs and enhances efficiency to a 'smart core'.


People's Daily Japanese Edition, 15 January 2026