China's Industry 4.0 revolution falters
China's Premier Li Keqiang has called for a “new industrial revolution” which will upgrade traditional manufacturing through technological innovation and revive the economy. This call builds on the existing “Internet Plus” strategy that pushes for more online start-ups and new technology in traditional sectors. However, analysts say that it will take time for China to find new growth areas robust enough to offset decline in traditional industries. Bank of Dongguan economist Chen Long, expressed concern that technological upgrading would increase costs for traditional manufacturers already struggling with weak demand. Michael Clauss, German ambassador to China, said the plan was similar to Germany’s Industry 4.0 strategy, which required automation in the manufacturing sector before digitalisation could be achieved but felt the process would take longer in China. The government’s “Made in China 2025” plan, launched in May, aims to transform the country into a manufacturing giant in a decade.

Beijing endeavours to combine manufacturing upgrade with technological innovation, but experts say the sector is far from ready