Digital transformation powers upgrade of manufacturing enterprises in Northeast China

SHENYANG -- Digital transformation is accelerating among small and medium-sized enterprises in Northeast China's industrial base, aided by supportive technical service system and thriving industrial ecosystem.

In Wafangdian city, a major production base for bearings in Northeast China's Liaoning province, local manufacturers are exploring digital transformation. At Jingu bearing company, where production once depended entirely on the experience of veteran workers, operations are now guided by precise data metrics.

"Digital transformation has elevated our production capacity and efficiency to a new level," said Zuo Tongming, owner of the company.

Nearby, at another manufacturer, all product inspection data is stored and updated in real time, with comprehensive reports available on demand for analysis.

"We've built a fully automated digital system that streamlines the entire process from order to delivery," said Zhou Jianhong, head of the company's information department. "It intelligently breaks down production processes and schedules equipment, allowing workers to manage required materials more efficiently. For precision tasks, they can readily access technical drawings on their phones."

He added that this digital transformation has increased production efficiency by 20 percent and cut operational costs by 15 percent.

For a long time, the high sunk costs of digitalization — often running into millions of yuan — had been a major hurdle for many entrepreneurs.

"I lay awake at night calculating the return on investment," admitted one local business owner, acknowledging that the financial strain and unpredictable payback periods left many companies feeling hesitant.

A supportive ecosystem developed by local authorities is helping to boost confidence in digital adoption. In addition to financial subsidies, the government has leveraged advanced industrial Internet platforms and tailored services for the local bearing cluster, offering end-to-end support from diagnosis to system deployment.

Liaoning province has built a comprehensive digital infrastructure system, supported by a foundation of 143,000 5G base stations that ensure full coverage in all cities and key industrial parks. The core of this infrastructure also features a blockchain network and two intelligent computing centers in Shenyang city and Dalian city, providing the critical data backbone for advanced applications.

Such infrastructure development facilitates platforms that connect manufacturers with supply and demand partners. For example, at the Shenyang service center of the national digital supply chain platform for equipment manufacturing, a small components factory uploaded a 3D model and was swiftly matched with a large manufacturer located just 20 kilometers away.

"It's like an online shopping application for industry. Smart algorithms optimize the matching of manufacturing resources," said Li Chunwei, an operator of the center. Hundreds of local firms have successfully used the platform, shortening design cycles by 30 percent and saving customer acquisition costs by 40 percent.

Breakthroughs in artificial intelligence (AI) are adding another layer of sophistication. Building on advances in domestic models like DeepSeek, Liaoning is now fostering industry-specific AI applications. For instance, researchers at the Dalian Institute of Chemical Physics recently launched a large model dedicated to the chemical industry. This model is capable of simulating complex molecular reactions, significantly reducing R&D time and optimizing production to conserve energy.

"Comprehensive industrial system and rich application scenarios provide an ideal foundation for developing such specialized models," said Pan Hong at digital economy research institute of Liaoning University.

Looking ahead, the momentum is set to accelerate across the Northeast China. In Heilongjiang province, the digital foundation is already solidifying. As of the first quarter of 2025, 51.1 percent of industrial enterprises in the province have achieved comprehensive digitization of their key business processes.

According to the plan of Jilin province for accelerating equipment upgrading in the industrial sector, the province aims to support 1,000 demonstration projects in smart manufacturing and digital transformation by 2027, cultivating 150 digital transformation service providers, establishing 120 provincial-level smart manufacturing demonstration factories and 3 leading industrial internet platforms.

From factory floors to AI models, manufacturers across Northeast China are scripting a robust story of revitalization powered by digital transformation. This tech-driven upgrade goes beyond a mere efficiency boost, serving as the key to unlocking a new chapter of innovation.