Automated production lines are becoming standard in advanced Chinese factories. Credit: CCTV Understand China EV’s Market Real-time notifications when critical EV data is released All important data in one place 2,000,000+ data points Become a member China has established a four-tier smart factory system and scaled deployment across the manufacturing sector, according to CCTV. The framework currently includes 35,000 Basic-level factories, more than 8,200 Advanced-level factories, over 500 Excellence-level factories, and 15 companies selected for the Leading Smart Factory Cultivation Program. The program is intended to guide manufacturers from digitalisation and connectivity toward higher levels of automation and intelligent manufacturing. MIIT data show that participating factories have reduced average product defect rates by 47% while shortening average product development cycles by 38%. The four-tier structure also serves as a pathway for evaluating increasingly sophisticated industrial technologies. AI application capability has now been incorporated into the assessment criteria for Excellence and Leading factories, with thresholds scheduled to rise over time. Manufacturing equipment evolves toward industrial AI agents Recent deployments show a shift beyond conventional factory automation toward systems capable of autonomous analysis and decision support. At an Excellence-level factory operated by TBEA Shenyang Transformer Group, an integrated digital platform links simulation, production scheduling, execution, and monitoring. The facility reports a 21% reduction in product development cycles and a 40% increase in production efficiency. The company has developed algorithms that continuously evaluate transformer health using real-time operational data. The system can issue status warnings eight to twelve hours before potential issues emerge, allowing maintenance teams to intervene earlier. A similar trend is visible in shipbuilding. At Hengli Shipbuilding in Dalian, digital systems connect design, planning, procurement, supply chains, production, and finance. Tasks that previously required two planners working for more than two weeks can now be completed largely by AI software within approximately 30 minutes, with personnel focusing on verification and adjustments. MIIT officials said future development will emphasise industrial foundation models, sector-specific AI models, and high-quality industrial datasets. The ministry also plans to accelerate the evolution of robots, machine tools, and industrial control systems toward more autonomous “intelligent agent” functions. New energy vehicles among priority sectors New energy vehicles are one of the industries identified for future Leading factories and large-scale industrial AI deployment. China’s automotive sector has already become a showcase for advanced manufacturing. In 2025, we reported that Avatr’s 5G AI-enabled factory could produce one vehicle every 60 seconds through highly automated manufacturing processes. Xiaomi’s EV factory has also attracted public attention, with factory tours becoming a popular destination for visitors seeking to observe large-scale automated vehicle production. These projects illustrate how AI, industrial internet platforms, digital twins, and connected production systems are increasingly integrated into vehicle manufacturing. Beyond automotive production, MIIT’s roadmap also covers rail transit equipment, aerospace, high-tech shipbuilding, steel, and petrochemicals. Official data show that China’s intelligent manufacturing equipment, industrial software, and system solutions industry has exceeded 4.5 trillion yuan (665 billion USD), while the system integration services market has surpassed 770 billion yuan (114 billion USD), making intelligent manufacturing one of the country’s largest industrial technology sectors. China’s smart factory program has expanded to 35,000 Basic-level facilities nationwide.