The first installment of a series published by JETRO on August 4, 2025, analyzing policy trends and rapid development of Industrial Internet of Things (IIOT) in China.
China's version of IIOT is characterized by a comprehensive approach that integrates not only production line automation and labor-saving, but the entire process from design to sales and maintenance through system integration. This achievement is reflected in China accounting for 72 locations (38.1%) out of 189 lighthouse factories worldwide, particularly leading with 27 end-to-end format facilities, significantly surpassing other regions.
Policy-wise, the integration of informatization and industrialization was established as a national strategy in "Made in China 2025" in 2015, with the term "Industrial Internet" first appearing in 2016. The development was structured in phases: 2018-2020 as the "startup stage" and 2021-2023 as the "rapid growth period."
The 14th Five-Year Plan (2021-2025) clearly positioned IIOT as a priority area for digital transformation promotion, specifying identifier resolution system construction, industrial software R&D, and international-standard platform construction. The plan targets achieving digitalization and networking in over 70% of manufacturing enterprises above a certain scale and constructing over 500 smart production model factories by 2025.
Since 2022, focus has shifted to AI applications and 5G integration, with the "5G + IIOT" 512 Project announced in December 2024, targeting the establishment of 10,000 5G factories and over 20 pilot cities by 2027. Local governments in major manufacturing regions like Guangdong, Jiangsu, and Zhejiang provinces have also implemented specific support measures including subsidies and preferential interest rates.
The article demonstrates that approximately 10 years of systematic policy promotion by the Chinese government has established China's IIOT industry in a world-leading position.