Made in China, reincarnated

BEIJING - An ambitious plan to reform China's manufacturing sector seeks to change the reputation for "Made-in-China" goods.

Since the country began its economic reform and opening-up in the late 1970s, it has gradually risen as one of the globe's largest manufacturers.

Often dubbed the factory of the world, China earned the title at the expense of the environment, with many manufacturers describing their production processes as dull, dirty and dangerous.

The "Made in China 2025" Plan released on Tuesday aims to reduce the environmental impact of manufacturing and promises to transform the sector, long plagued by overcapacity, into an efficient and sophisticated industry.

It also lays out strategies for the country to upgrade from low-end manufacturing to more value-added and tech-intensive production, and encourages domestic manufacturers to achieve technological breakthroughs across a number of emerging industries from numerical control tools and robotics to aerospace equipment and new energy vehicles.

China's industry 4.0

Many likened the vision depicted in the plan to Germany's Industry 4.0, which emphasizes greater integration with physical production and the virtual world of data.

"Industry 4.0 is about embracing smart manufacturing," said Qu Daokui, president of Siasun Robot & Automation, based in the country's traditional industrial base in the northeast, "whereas the first three industrial revolutions have extended human strength in manufacturing. Industry 4.0 is about making the manufacturing process smart."

Manufacturing upgrades are not only one country's problem, Qu said, but rather a global challenge. Technologies like big data, the Internet, sensors and robots have enabled more efficient manufacturing. Besides, a worldwide manufacturing glut is also forcing the sector to change.

While overcapacity has brought a lot of pain for manufacturers, it also tilts the power balance toward the demand side. Customers worldwide are demanding greater individuality from mass production.

China's worsening labor shortage and rising labor cost also underscores the urgency for the country's manufacturing to upgrade.

"It's wrong to think the problem we have in manufacturing is cyclical or that it stems from a financial crisis. The truth is technological progress is the driving force of the ongoing readjustment in our manufacturing," Qu said.

Redefining Made in China

Tian Suning, chairman of China Broadband Capital, believes that the new manufacturing that emerges from the latest industrial revolution will be powered by cloud computing and big data. Manufacturing will become more responsive to demands and the economy better structured.