A man experiences an AI machine at the 2021 World Artificial Intelligence Conference Photo: Chen Xia/GT

With the global manufacturing industry entering a period of restructuring and transformation, the Shanghai municipal government on Wednesday issued its 14th Five-Year Plan (2021-25) to develop high-end manufacturing in response to the national plan calling for building up of competitive advanced manufacturing clusters.

Advanced manufacturing clusters refer to industrial groupings built by a group of firms which can make mutual cooperation and exchanges.

Shanghai will take integrated circuits, biomedicine and artificial intelligence (AI) as the three major leading industries, and as well strengthen the development of six key industries—electronic information, life health, autos, high-end equipment, advanced materials and fashion consumer goods—in the next five years.

According to the plan, more leading firms will be encouraged to design chips with 3 nanometer or less technology to build a national-level electronic design automation (EDA) platform to advance the semiconductor industry and enhance market competitiveness. 

With the pushing forward of re-industrialization by developed countries, as well as the impact of the COVID-19 pandemic, the supply chain pattern of the global industrial chain has seen its restructuring accelerated, according to a report by the Shanghai Municipal Commission of Economy and Information sent to the Global Times on Wednesday, explaining the plan's background.

China's manufacturing industry has entered a "critical period of upgrading." The central government has focused on the development of real economy and unswervingly building manufacturing power, having a new development pattern of "dual circulation," the report said. The main body of the real economy is manufacturing, which is the important support for a city's core competitiveness. 

Shanghai's manufacturing industry also faces challenges; for example, more investment is needed for innovative research and development, industrial chains still need to be improved, and the international competitiveness of leading enterprises still needs to be enhanced, according to the plan. Shanghai aims to take the lead in some key high-end industries by 2025.