China Allocates 200 Billion Yuan for Equipment Upgrades Across 16 Key Industries

On June 26, 2025, during a press conference by the National Development and Reform Commission (NDRC), spokesperson Li Chao announced that 200 billion yuan from ultra-long-term special treasury bonds will finance equipment upgrades across 16 sectors, spanning 7,500 projects. The first tranche of funds, amounting to 173 billion yuan, has already been distributed, with the second batch under review.

The 2024 Guidelines for Equipment Upgrades in Key Industrial Sectors emphasized modernization in industries like petrochemicals, semiconductors, lithium batteries, photovoltaics, and chemical machinery, aiming for energy efficiency, digital transformation, and safety enhancements by 2027.

In petrochemicals, outdated units exceeding 20 years of operation will undergo green, intelligent, and safe modifications. Goals include achieving 85% smart process control, increasing digital R&D tool adoption to 75%, and aligning energy efficiency with 2023 benchmark levels. Similarly, the electronics sector will focus on upgrading key production and inspection equipment to enable miniaturization and high-precision manufacturing.

The lithium battery industry targets automation, boosting production efficiency and product consistency, while the photovoltaic sector will modernize silicon materials, wafers, and cell manufacturing to enhance energy efficiency and reduce costs.

These efforts reflect China’s push for smart, green, and high-performing industries, backed by comprehensive policy support.