Wafangdian: Digital transformation is accelerating among small and medium-sized enterprises in northeast China’s industrial base, aided by a 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.
According to Namibia Press Agency, digital transformation has significantly elevated production capacity and efficiency. Zuo Tongming, owner of Jingu bearing company, highlighted the transformative impact of data-driven operations on their manufacturing processes. Meanwhile, another local manufacturer has implemented a fully automated digital system that streamlines processes from order to delivery, with real-time data storage and comprehensive report generation for analysis.
Zhou Jianhong, head of the company’s information department, noted that the digital system intelligently breaks down production processes, schedules equipment, and allows workers to efficiently manage materials. This transformation has not only increased production efficiency by 20 percent but also reduced operational costs by 15 percent.
Previously, the high sunk costs of digitalization, often in the millions of yuan, posed a major hurdle for entrepreneurs. One local business owner admitted to sleepless nights over calculating return on investment, with the financial strain and unpredictable payback periods causing hesitation.
A supportive ecosystem developed by local authorities is now boosting confidence in digital adoption. Financial subsidies, advanced industrial Internet platforms, and tailored services for the local bearing cluster offer end-to-end support from diagnosis to system deployment. Liaoning Province’s comprehensive digital infrastructure, including 143,000 5G base stations, a blockchain network, and intelligent computing centers, provides a critical backbone for advanced applications.
The infrastructure development facilitates platforms that connect manufacturers with supply and demand partners. At the Shenyang service center of the national digital supply chain platform for equipment manufacturing, smart algorithms optimize resource matching, reducing design cycles by 30 percent and customer acquisition costs by 40 percent, according to Li Chunwei, an operator of the center.
Breakthroughs in artificial intelligence (AI) add another layer of sophistication. Liaoning is fostering industry-specific AI applications, such as a large model launched by researchers at the Dalian Institute of Chemical Physics. This model simulates complex molecular reactions, reducing R and D time and optimizing production to conserve energy. Pan Hong, at the digital economy research institute of Liaoning University, emphasized the ideal foundation for developing specialized models provided by the comprehensive industrial system and rich application scenarios.
The momentum is set to accelerate across northeast China. In Heilongjiang Province, 51.1 percent of industrial enterprises have achieved comprehensive digitization of key business processes as of the first quarter of 2025. Jilin Province plans to support 1,000 smart manufacturing and digital transformation projects by 2027, cultivating digital transformation service providers and establishing smart manufacturing demonstration factories and industrial internet platforms.
From factory floors to AI models, manufacturers in northeast China are scripting a robust story of revitalization powered by digital transformation. This tech-driven upgrade goes beyond efficiency boosts, unlocking a new chapter of innovation.