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December 24, 2018

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Growth in west will be led by digital economy

ONE set of robots seize auto parts and install them precisely on the car body, while another hold up welding guns and join metal in a shower of sparks.

鈥淢ost of the part installing and welding work in the car assembly line is done by robots,鈥 said Liang Fenghua of the intelligent vehicle division of Chongqing Changan Automobile.

The smart manufacturing helps raise precision, cut labor costs by about 90 percent and increase work efficiency by 40 percent, Liang said.

Like Changan, many manufacturers in Chongqing are using robots to replace labor. As a result more than 300 companies have improved work efficiency by over 30 percent.

The automaker in southwest China is also one of the country鈥檚 first companies to invest in intelligent driving.

鈥淲e have mass produced cars with intelligent driving functions such as automatic parking and cruise,鈥 Liang said.

The advances are evidence China鈥檚 digital economy is spreading from the booming east.

鈥淭he west, where factors of production have obvious comparative advantage, has the largest growth potential in China,鈥 said Yi Xiaoguang, president of the Chongqing Institute of Comprehensive Economic Research.

Yi said making industry more intelligent was key to helping unleash the potential in western China and promoting economic transformation.

In Chongqing, the two pillar industries of autos and electronics have been contributing less and less to the local economy due to a variety of factors, including fierce competition and constraints in market size.

The city is turning to the digital economy for more growth momentum. It is developing intelligent industries such as Big Data, AI and intelligent hardware, and using Big Data and intelligent technologies to upgrade traditional industries.

Chongqing has pledged to support the development of 12 high-tech industries, including Big Data, AI, intelligent robot and connected cars, aiming to achieve a combined output value of 750 billion yuan (US$108 billion) in 2020, and 1 trillion yuan in 2022.

Some of the high-tech solutions have helped improve efficiency. A facial recognition system has been deployed at a Chongqing airport to speed security checks. Cloudwalk, developer of the intelligent security check system in Chongqing, has deployed the system at more than 60 airports nationwide.

Other parts of western China, including Sichuan, Guizhou and Shaanxi, are also embracing the digital economy.

Authorities in Sichuan plan to make major progress in the development of the AI industry, with its annual industrial output estimated to exceed 50 billion yuan in 2020, and to promote AI technology to better integrate with the real economy.

Guizhou, one of the least developed regions in China, has become a leading hub for the Big Data industry. As China鈥檚 first Big Data pilot zone, the mountainous province has attracted heavyweight players, including Apple, Qualcomm, Huawei, Tencent, Alibaba and Foxconn, to establish cloud computing and Big Data centers.

Authorities in Shaanxi are nurturing a complete Big Data ecosystem, including an exchange, industrial base, industrial fund and industrial alliance.

鈥淭he digital wave will provide new impetus to economic growth in western China and make it a pillar of China鈥檚 quality growth in the future,鈥 said Xu Xiaolan, vice president of the Chinese Institute of Electronics.


 

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