Shanghai released a three-year action plan on Jan 9, aiming to transform and upgrade its advanced manufacturing sector between 2026 and 2028.

Issued by the Shanghai Municipal People's Government, the plan sets a target of adding 100 manufacturing companies with an annual output value exceeding 1 billion yuan ($143.36 million) by 2028, lifting the total to more than 600.

It also seeks to strengthen the industrial chain by adding 500 new industrial enterprises above a designated size and significantly increase the percentage of research and development spending among these firms' revenue.

The action plan outlines a range of priorities, including the upgrading of traditional industries such as petrochemicals and steel, faster development of strategic industries like integrated circuits and biomedicine, and the cultivation of emerging industries such as the low-altitude economy, commercial aerospace, and embodied intelligence.

To bolster innovation, Shanghai will provide financial support to companies that increase investment in basic research, with one-time subsidies ranging from 2 million to 10 million yuan for annual R&D expenditures exceeding 10 million yuan.

The city will also encourage sustained high growth in R&D spending and support the establishment of research centers and open innovation platforms.

The plan includes measures to promote technological upgrades by subsidizing fixed-asset investment loans or equipment financing lease expenses for technological transformation projects, with support capped at 20 million yuan.

Digital transformation is another key focus, with the city promoting the application of AI in manufacturing and aiming to achieve full digital intelligence coverage in large enterprises by 2027.

By 2028, Shanghai plans to see smart factories fully implemented in large enterprises, raise robot density to 600 units per 10,000 people, and lift the digitalization level of intelligent manufacturing equipment to more than 70 percent.

Green transformation also features prominently. Shanghai will reward energy-saving and emission-reduction projects, with subsidies ranging from 1,000 to 2,000 yuan per ton of standard coal saved, up to a maximum of 10 million yuan.

The city aims to add over 100 national-level green factories by 2028, with a one-time reward of 200,000 yuan for newly recognized facilities.

In addition, the plan emphasizes talent development, employment support, space optimization, and financial assistance, while also prioritizing improvements in logistics infrastructure, cost reductions, and the creation of application scenarios for new technologies and products.

Shanghai also aims to support manufacturing enterprises in expanding into both domestic and international markets.

Source: General Office of Shanghai Municipal People's Government