A digital workshop in Ningbo, East China's Zhejiang province. [Photo/cnnb.com.cn]

Ningbo in East China's Zhejiang province has been selected as one of 30 cities to be included in a national pilot program aimed at facilitating the digital transformation of small and medium-sized enterprises (SMEs), as announced by the Ministry of Industry and Information Technology on Aug 30.

As part of its initiative to become a global innovation hub for smart manufacturing, Ningbo is actively exploring a transformative path to empower the upgrading of SMEs.

In order to address the challenges faced by SMEs, who may have reservations regarding digital transformation, Ningbo has developed its own solution. The city has adopted a strategy of conducting pilot programs in specific sectors across different regions.

For instance, Ningbo's Haishu district is a center for the textile and clothing industry and home to over 1,000 textile and clothing companies, most of which are concentrated in Gulin town.

To support these companies, particularly the SMEs, the local government has launched a unified industrial internet platform and developed both common application scenarios and customized application scenarios.

Around 80 percent of SMEs in the textile and clothing industry in Haishu district have already completed digital transformation, resulting in a significant improvement in overall efficiency for participating enterprises.

And this is just the beginning. Similar pilot programs based on regions and industries have been launched in various administrative areas. For example, Jiangbei is focusing on magnetic materials, Zhenhai on fine chemical products, Beilun on aluminum alloy casting and precision machining, Yinzhou on auto parts, Fenghua on pneumatic components, Yuyao on cosmetic packaging materials, Cixi on small home appliances, Ninghai on key basic components, and Xiangshan on knitted clothing.

According to a report published in 2021 by the China Electronic Technology Standardization Research Institute, about 79 percent of SMEs in China are still in the early exploration stage of digital transformation and upgrading. Only 12 percent have reached the application stage, with a mere 9 percent at the stage of deep application.