The Role of “Industry 4.0” in the Modernization of Industrial Production in China

In 2010 German government continued with the strategic plan named „‟High-Tech Strategy 2020‟‟ with an emphasis on scientific and technological development. Under the title „‟Industry 4.0‟‟they are promoting reform and modernization of production in all industry branches by introducing digital technology, which depends on a number of new and innovative technological achievements. Their intention is to integrate production processes at all stages of formation and use of the product with the use and application of ICT and digital technology. The modernization and automation of production processes include advanced sensors and intelligent robots configured independently so as to monitor and participate in the development of products. In addition, technologically advanced countries like USA, UK, Japan, Sweden and others have accepted and introduced digital technology in production processes with the aim of creating intelligent automation, and intelligent factory of the future. China is faced with competition from ASEAN countries and Central Asia, which have cheap labour market. This weakens the export demand from China to the EU and USA, as evidenced by the „‟Report on the Global Innovation Index 2015‟‟.In response to the „‟Industry 4.0‟‟, the Government of China created the strategy „‟Made in China 2025‟‟, which promotes the relationship between information technology and industrial production, introduces the optimization of production processes, increases the ability to innovate in the industry including ICT, industrial and service robots, high technology machine tools, new materials, etc. China is relatively weak compared to the technologically developed countries in the world in regard to innovation and newer technologies, so it focused on industrial modernization in key sectors: telecommunications, production of commercial aircraft and helicopters, agricultural machinery, medical devices, alternative energy, electric vehicles and materials. The implementation of the adopted strategy in China is creating new opportunities for the promotion of successful innovative and creative economy, which enables the transition from „‟Great industrial economy‟‟ into „‟Powerful industrial economy‟‟.