By Special Correspondent

China will allocate 200 billion yuan in 2026 to support large-scale equipment upgrades as part of efforts to promote industrial transformation and strengthen the manufacturing sector, according to the draft central and local budgets submitted to the national legislature.

The report states that ultra-long special treasury bonds totaling 200 billion yuan will be allocated to support equipment upgrades across industries.

Authorities will lower the access requirements for investment amounts in order to better support the equipment upgrading needs of small and medium-sized enterprises.

The initiative forms part of broader efforts to facilitate industrial transformation and upgrading and promote the development of a modern industrial system.

According to the report, authorities will continue rolling out initiatives aimed at promoting the high-quality development of key industrial chains in the manufacturing sector.

Programs will also advance industrial foundation reengineering and research on major technologies and equipment in order to strengthen the resilience and self-supporting capacity of industrial supply chains.

The report notes that pilot programs aimed at upgrading manufacturing through the application of new technologies will be extended to a third group of cities.

These initiatives are intended to accelerate the large-scale adoption of digital, intelligent and green technologies in manufacturing.

China will also support the development of emerging pillar industries, including integrated circuits, aviation and aerospace, and biomedicine.

In addition, fiscal policy will support the development of future industries such as future energy, quantum technology, embodied artificial intelligence and sixth-generation mobile communications.

Authorities will continue advancing the AI Plus Initiative aimed at promoting the application of artificial intelligence technologies in economic development.

The report states that the government will also support the development of public service platforms, such as pilot-scale testing platforms and major application scenarios, in order to facilitate the large-scale and commercial application of new technologies and products.

These measures are intended to promote industrial upgrading, strengthen innovation capacity and support the modernization of manufacturing across key sectors of the economy.

Credit: INP-WealthPk