China's central SOEs to invest over 3t yuan in equipment upgrades

China's centrally-administered State-owned enterprises will invest over 3 trillion yuan ($413.94 billion) for large-scale equipment upgrades over the next five years, aiming to stay at the forefront of the latest technological and industrial advancements, said government officials on Friday.

Speaking at a news conference in Beijing, Liu Shaowei, head of the bureau of financial oversight and operational evaluation under the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council, said that the central SOEs will accelerate the replacement and upgrades of outdated production equipment with low efficiency and obsolete technologies.

Central SOEs will implement a series of "intelligent transformation, digital transition and network connectivity"-themed projects to promote the integration of new technologies such as artificial intelligence with all aspects of the manufacturing process, said Liu.

The government will support central SOEs to develop and produce new types of equipment in various fields, such as industrial machinery, agriculture, healthcare and education, she added.

Wang Hongzhi, vice-chairman of the SASAC, said that for the next step, Central SOEs will seize the opportunities presented by the new round of technological and industrial revolution, and quicken the establishment of systems conducive to original innovation and the development of strategic emerging industries.

Strategic emerging industries in China include energy-saving and environmental protection, next-generation information technology, biotechnology, high-end equipment manufacturing, new energy, advanced materials and electric vehicles.

China has stepped up efforts to boost the innovation prowess of its SOEs. These companies have actively promoted the high-end, intelligent and green development of traditional industries while accelerating the building of a systematic layout for strategic emerging industries.

Central SOEs' investment in strategic emerging industries soared 32 percent year-on-year to 2.18 trillion yuan in 2023, data from the SASAC showed.