Fund Management Measures for the Digital Transformation of the Manufacturing Industry through the Industrial Internet
2024-04-01 00:00

Original Title: Notice from the Department of Industry and Information Technology of Shandong Province and the Department of Finance of Shandong Province on Issuing the "Measures for the Administration of Funds for Industrial Internet-Empowered Digital Transformation of Manufacturing in Shandong Province and Implementation Rules (Trial)"
Chapter I General Provisions

Article 1 To implement the "Shandong Province Manufacturing Digital Transformation Action Plan (2022–2025)"the "Shandong Province Action Plan for Upgrading the Digital Transformation of Manufacturing (2023–2025)," and the "2024 Policy List for ‘Promoting Economic Consolidation and Improvement, and Accelerating Green, Low-Carbon, and High-Quality Development’ (First Batch)," and to leverage the guiding role of fiscal funds, these Management Measures and Implementation Rules are formulated to accelerate the digital transformation of manufacturing through the empowerment of the industrial internet and to support the development of new industrialization.

Article 2 Provincial fiscal support funds for industrial internet-enabled digital transformation of the manufacturing sector shall be allocated through the provincial fiscal budget and subject to total amount control.

Article 3 The Provincial Department of Industry and Information Technology, in conjunction with the Provincial Department of Finance, shall be responsible for the provincial fiscal support policies for the digital transformation of the manufacturing sector through industrial internet empowerment. Specifically, the Provincial Department of Industry and Information Technology shall be responsible for project applications, budget preparation and execution, and conducting self-assessments of performance. The Provincial Department of Finance shall be responsible for the raising and disbursement of policy funds, as well as leading the organization and implementation of performance management.

Chapter II Scope of Support

Article 4 The provincial fiscal support policy adopts a grant and subsidy approach to provide support for national-level digital transformation benchmark demonstrations from the previous year—including “cross-industry, cross-domain” industrial internet platforms, “Digital Navigation” enterprises, and specialized industrial internet platforms—as well as 5G base station construction, the construction of industrial internet identifier resolution secondary nodes in the current year, and “open challenge” projects for the digital transformation of manufacturing.

(1) National-level “Cross-Industry, Cross-Domain” Industrial Internet Platforms primarily refer to platforms recognized by the Ministry of Industry and Information Technology (MIIT) as spanning multiple industries and domains. These platforms serve as vital vehicles for the aggregation and sharing of industrial resources, the integration and utilization of industrial data, and the optimization and innovation of industrial production and services, representing the highest standard of industrial internet platforms in China.

(2) National-level “Digital Leadership” enterprises primarily refer to manufacturing digital transformation benchmarks recognized by the Ministry of Industry and Information Technology (MIIT) for their strong technical capabilities, superior business models, innovative management philosophies, and high quality and efficiency. By focusing on the transformation of all elements, processes, and ecosystems—including R&D and design, production and manufacturing, and operational management—these enterprises lead and drive more manufacturing enterprises to engage in innovative practices.

(3) National-level Specialized Platforms primarily refer to specialized industrial internet platforms recognized by the Ministry of Industry and Information Technology (MIIT) that target key industries, key regions, or specific technical fields. These platforms develop and promote solutions based on industrial internet platforms to build a support system for the digital transformation of the manufacturing sector.

(4) Subsidies for 5G Base Station Construction: These primarily apply to telecommunications operators that complete their annual 5G base station construction targets on schedule, specifically for newly constructed 5G base stations that carry traffic for innovative applications in vertical industries.

(5) Industrial Internet Identifier Resolution Secondary Nodes: These primarily refer to public service nodes for identifier resolution within a specific industry or region. They provide identifier registration and resolution services to the industry or region, as well as handle related identifier business management and application integration.

(6) Manufacturing Digital Transformation “Challenge-Based” Projects: These primarily refer to initiatives where the Provincial Department of Industry and Information Technology publicly issues challenges addressing the digital transformation needs of specific sub-sectors. Digital transformation service providers—such as “cross-sector” platforms—collaborate with manufacturing enterprises to conduct pilot projects and jointly implement solutions, thereby creating replicable and scalable model scenarios and solutions.

Chapter 3 Eligibility Criteria

Article 5 Applicants for provincial fiscal support funds for the "Industrial Internet Empowering Manufacturing Digital Transformation" program must meet the following conditions:

(1) The entity must be in normal operation, have a good credit record, align with industrial development priorities, and conduct project construction within Shandong Province;

(2) Have not experienced any major or above-level work safety accidents in the past three years, and have no record of major violations or illegal activities such as environmental pollution, product quality issues, or serious breaches of trust;

(3) Comply with the requirements of the “green threshold” system for fiscal funds involving enterprises;

(4) The legal representative must not be listed on the National Court List of Dishonest Persons Subject to Enforcement.

Article 6: Entities applying for awards and subsidies for national-level “cross-sector, cross-industry” industrial internet platforms and specialized platforms must also meet the following conditions:

(1) Be the owner of the industrial internet platform;

(2) Be a cross-industry, cross-domain industrial internet platform or a specialized industrial internet platform recognized by the Ministry of Industry and Information Technology in the previous year.

Article 7 Entities applying for awards and subsidies for “Digital Leadership” enterprises must also meet the following conditions:

Be a “Digital Pioneer” enterprise recognized by the Ministry of Industry and Information Technology in the previous year.

Article 8 Entities applying for subsidies for 5G base station construction must also meet the following conditions:

(1) Be a Shandong branch or subsidiary of a national basic telecommunications operator and have completed the 5G base station construction tasks for the previous year;

(2) The 5G base stations for which subsidies are sought must have been activated and put into operation between January 1 and December 31 of the previous year, with an average daily traffic volume exceeding 30 GB.

Article 9: Entities applying for subsidies for the construction of industrial internet identifier resolution secondary nodes must also meet the following conditions:

(1) The secondary node must be connected to the national top-level node to enable real-time data synchronization and resolution services;

(2) The cumulative and current-year new identifier registrations and resolution volumes must each be no less than 100,000, and the number of connected enterprise nodes must be no fewer than 5;

(3) Priority will be given to applicants that have obtained a license for industrial internet identifier registration services.

Article 10 Entities applying for subsidies for "Challenge-Based" projects in the digital transformation of manufacturing must also meet the following conditions:

(1) The lead entity’s primary business must include at least one of the following digital transformation service sectors: 5G, industrial internet, smart manufacturing, industrial software, or industrial control, and it must have a technical service team operating within Shandong Province;

(2) The lead entity must collaborate with manufacturing enterprises to conduct pilot projects in the “Challenge-Based” format, with project expenditures during the implementation period (including expenses for equipment, materials, products, and software related to the project by member units within the consortium, as well as expenses for consulting, diagnosis, design, testing, evaluation services, and personnel related to the project—excluding duplicate calculations) totaling no less than 1 million yuan;

(3) The lead entity has developed typical scenarios and advanced, applicable solutions in response to the requirements of the announced task, and has promoted and applied these solutions within relevant manufacturing enterprises.

Article 11 For projects applying under the “Challenge-Based Recruitment” initiative for manufacturing digital transformation, the number of consortium members shall generally not exceed three. The project must not have previously received provincial-level fiscal funding, and duplicate or disguised duplicate applications are strictly prohibited.

Chapter IV Project Application and Selection

Article 12 The Provincial Department of Industry and Information Technology shall issue project application notices by category in accordance with Shandong Province’s relevant development plans and policy guidelines, specifying the areas of support, application criteria, review procedures, and requirements for application materials.

Article 13 Applicant entities shall submit applications to the local Department of Industry and Information Technology within the specified timeframe in accordance with the requirements of the application notice, and shall be responsible for the authenticity and compliance of the application materials and the project.

Article 14 Municipal departments of industry and information technology shall organize project applications within their jurisdictions in accordance with the principle of territorial management. They shall evaluate and review the application materials and projects, provide clear review and recommendation opinions in accordance with procedures, and formally submit them to the Provincial Department of Industry and Information Technology.

Article 15 The Provincial Department of Industry and Information Technology shall conduct a compliance review of the application materials. For projects that pass the review, the Department shall, in accordance with established procedures, organize experts or commission third-party professional institutions to conduct a comprehensive evaluation through various methods, including centralized review of application materials, on-site or online defense sessions, and on-site verification.

Article 16 Based on the evaluation opinions of experts or third-party professional institutions, the Provincial Department of Industry and Information Technology shall propose a list of projects to be supported and make it public for no less than five working days. If no objections are raised during the public notice period, the Provincial Department of Industry and Information Technology shall submit the list of proposed projects and funding allocation recommendations to the Provincial Department of Finance, which shall disburse the funds in accordance with established procedures after review. For projects receiving objections during the public notice period, the Provincial Department of Industry and Information Technology shall promptly organize an investigation and verification.

Article 17 To reduce the burden of duplicate evaluations on enterprises, a simplified application and evaluation procedure shall be implemented for grant funds related to national-level digital transformation benchmark demonstration projects, such as “Dual-Cross” industrial internet platforms, “Digital Navigation” enterprises, and specialized industrial internet platforms.After municipal bureaus of industry and information technology submit applications to the Provincial Department of Industry and Information Technology in accordance with the application notice requirements, the Provincial Department of Industry and Information Technology shall verify the applications against the official list published by the Ministry of Industry and Information Technology. Upon confirming the compliance of the applicants and application materials, no expert or third-party professional institution review shall be organized; instead, the list of proposed supported projects shall be publicly announced in accordance with established procedures.

Article 18: The subsidy program for 5G base station construction is jointly organized by the Provincial Department of Industry and Information Technology and the Provincial Communications Administration. The authenticity of newly added 5G base stations is preliminarily reviewed by referencing the monthly statistical reports on the information and communications industry issued by the Ministry of Industry and Information Technology, and a third-party institution is commissioned to conduct a re-examination of the construction and commissioning status of the reported 5G base stations.When submitting project applications, provincial branches of basic telecommunications operators shall submit them directly to the Provincial Department of Industry and Information Technology in accordance with the requirements of the application notice, without the need for recommendation by municipal-level industry and information technology departments.

Article 19 The "Challenge-Based" projects for the digital transformation of the manufacturing sector shall be implemented according to the principle of "pilot first, acceptance second, and reward third." The list of tasks shall be compiled in accordance with relevant national and Shandong Provincial development plans and policy guidelines, and may be formulated through a coordinated process involving local solicitation, recommendations from industry divisions (offices), and participation by national think tanks.

Article 20 When a service provider takes the lead in undertaking a pilot task under the “Challenge-Based” initiative, it shall sign an agreement with all entities within the consortium, including manufacturing enterprises, to clarify the division of responsibilities and rights and obligations, and to specify matters such as project objectives, cooperation details, work plans, funding methods, and intellectual property ownership.

Article 21. Consortium members undertaking “Challenge-Based Recruitment” pilot tasks shall maintain separate accounting for project investments, improve internal management systems, and standardize project expenditure.

Chapter V Fiscal Incentives

Article 22: For national-level benchmark demonstration projects in the field of digital transformation—such as “Cross-Industry” industrial internet platforms, “Digital Navigation” enterprises, and specialized platforms—newly selected in the previous year, one-time financial incentives of up to 5 million yuan, 2 million yuan, and 1 million yuan, respectively, shall be provided.

Article 23: For newly constructed 5G base stations that support innovative applications in vertical sectors such as smart manufacturing, smart transportation, smart hubs, smart healthcare, urban management, smart public services, and smart education, and have an average daily data traffic exceeding 30 GB, the provincial government will provide a subsidy of up to 5,000 yuan per base station based on its contribution to promoting such applications.with a maximum subsidy of 15 million yuan per telecommunications operator or consortium operating under a co-construction and sharing model; a single enterprise may not apply simultaneously as both an independent entity and as part of a consortium.

Article 24 For secondary nodes of the identification and resolution system that have a clear business model and have established the capability to provide large-scale identification and resolution application services, awards of up to 2 million yuan will be granted on a merit basis according to the results of a comprehensive evaluation ranking.

Article 25: For entities undertaking pilot projects under the “Challenge-Based” digital transformation initiative that have completed construction tasks following acceptance evaluation, one-time incentive grants of up to 1 million yuan, 500,000 yuan, or 300,000 yuan per scenario will be awarded based on comprehensive evaluation results categorized as “Excellent,” “Good,” or “Pass,” taking into account project investment during implementation and the effectiveness of the completed construction.

Article 26 For “Challenge-Based” digital transformation projects in the manufacturing sector, fiscal funds shall be disbursed exclusively to the lead service provider, which shall be responsible for the management and allocation of such funds. In principle, a single service provider may participate in no more than five “Challenge-Based” tasks per year, and a single manufacturing enterprise may participate in no more than one such task per year.In accordance with the “rolling implementation” principle, projects not accepted in the current year may be carried over to the next batch for centralized acceptance; such carryovers will count toward the annual quota for “Challenge-Based” projects in the year of acceptance.

Chapter 6 Performance Evaluation and Supervision

Article 27 The relevant municipal and county industry and information technology departments shall, in conjunction with the finance departments at their respective levels, strictly adhere to budget management requirements, conduct regular performance evaluations, effectively strengthen fund supervision, and improve the efficiency of fund utilization.

Article 28. Project-bearing entities are responsible for the specific implementation of projects and must cooperate with supervision and inspection, performance evaluation, and audit activities. For applicants found to have engaged in fraud or used improper means to obtain grant funds, eligibility for subsidies shall be revoked without exception; legal and regulatory liability shall be pursued, and funds already disbursed shall be recovered.

Article 29. Competent authorities and finance departments at all levels shall proactively accept supervision from the People’s Congress, disciplinary inspection and supervision bodies, and audit agencies. Any violations of laws or regulations discovered during audits or supervisory inspections shall be handled in accordance with the provisions of the Budget Law of the People’s Republic of China, the Civil Servant Law of the People’s Republic of China, the Supervision Law of the People’s Republic of China, and the Regulations on Penalties and Disciplinary Actions for Fiscal Law Violations; cases suspected of criminal activity shall be transferred to judicial authorities for handling.

Chapter VII Supplementary Provisions

Article 30. These Administrative Measures and their implementing rules shall take effect from the date of issuance and remain valid until December 31, 2024.

Article 31 The Provincial Department of Industry and Information Technology and the Provincial Department of Finance shall be responsible for interpreting these Administrative Measures and their implementing rules.


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