Industry 4.0 Creating a Buzz in Western Hemisphere: But Watch Out for China Pulling Into the Fast Lane

Heng, Stefan (2020). "Industry 4.0 creating a buzz in western hemisphere: But watch out for China pulling into the fast lane". In: Machado, Carolina and Davim, J. Paulo (Eds.). “Industry 4.0: Challenges, Trends and Solutions in Management and Engineering”. Taylor & Francis. Boca Raton. pp 43 - 76. I

48 Pages Posted: 22 Jul 2020

See all articles by Stefan Heng

Stefan Heng

Baden-Wuerttemberg Cooperative State University

Date Written: June 8, 2020

Abstract

Industry 4.0 is a subject with global implications. Essentially, the concept comes down to the reorganisation and automation of value chains. If successfully implemented, industry 4.0 sets out to revolutionise the way goods and services are created and distributed, reshaping the industrial landscape on a national and global scale.

Thus, China is determined to seize the opportunities of the digital evolution. China's government actively promotes the transformation towards an innovation-led growth model through large policy programs. The scope of funding for seven Strategic Emerging Industries is placed in the Five-Year-Plan. Thus, the government unveiled its “Made in China 2025” program.

Here, China is considered the most mature adopter of industry 4.0 worldwide. Aside from world leaders such as Huawei and ZTE, myriads of Chinese small and medium enterprises create an updated version of German Mittelstand for Far East.

Notwithstanding, the rank and file of China’s companies did still not embrace the benefits of previous industrial stages. The country is and will remain highly heterogeneous. Therefore, industry 4.0 is realised locally and in an evolutionary fashion. Overall, China’s implementation of industry 4.0 is still in its infancy. Nevertheless, by managing to extrapolate the momentum, China is pulling into the fast lane.

Keywords: automation; digitalization; digital transformation, industry 4.0; IoT; China

JEL Classification: F60, L0, O14, O25, O31, O32, O33

Suggested Citation

Heng, Stefan, Industry 4.0 Creating a Buzz in Western Hemisphere: But Watch Out for China Pulling Into the Fast Lane (June 8, 2020). Heng, Stefan (2020). "Industry 4.0 creating a buzz in western hemisphere: But watch out for China pulling into the fast lane". In: Machado, Carolina and Davim, J. Paulo (Eds.). “Industry 4.0: Challenges, Trends and Solutions in Management and Engineering”. Taylor & Francis. Boca Raton. pp 43 - 76. I, Available at SSRN: https://ssrn.com/abstract=3617996 or http://dx.doi.org/10.2139/ssrn.3617996

Stefan Heng (Contact Author)

Baden-Wuerttemberg Cooperative State University ( email )

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Mannheim, Baden-Wuerttemberg 68163
Germany
+49 621 4105 1183 (Phone)
+49 621 4105 1245 (Fax)

HOME PAGE: http://www.mannheim.dhbw.de/profile/heng

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