On July 7, U.S.-based General Electric (GE) announced a partnership with China Telecom Group, integrating its industrial internet platform Predix—often described as the "operating system for industrial equipment"—with China Telecom's comprehensive information services. As a result, the U.S. industrial internet is now set to expand into key Chinese sectors such as cloud storage, remote healthcare applications, smart manufacturing, and cloud computing.

　　A few days later, the China Industrial Internet Association was established in New York, marking a significant breakthrough in international collaboration between China's and the U.S. industrial and information-communication sectors—following the launch of the China-Germany Industrial 4.0 dialogue.

　　It is reported that GE has launched 12 industrial internet pilot projects in China and is currently advancing the implementation of more than 40 big data analytics applications. The industrial internet, often hailed as a hallmark of the third industrial wave, is now actively contributing to and shaping the "Internet+" initiative within China's industrial sector.

　　Before the large-scale introduction of the Industrial Internet into China's industrial sector, it is essential to thoroughly examine how the Industrial Internet emerged, what exactly it aims to achieve, why it was developed, and whether there might be any unintended side effects.

　　Industrial Internet

　　Reinventing "Made in America"

　　After the 2008 financial crisis, the U.S. government’s biggest realization was the critical importance of the real economy to the nation’s economic health, recognizing that industry is the most vital component of national competitiveness. In response, the administration has continuously rolled out a series of national initiatives—such as the "Framework for Revitalizing American Manufacturing," the "Advanced Manufacturing Partnership Program," and the "National Strategic Plan for Advanced Manufacturing"—all aimed at advancing the "reindustrialization" strategy.

　　In 2012, GE, a leading U.S. manufacturing company, was the first to introduce the concept of the "Industrial Internet." By leveraging interconnected machines and equipment along with advanced analytics software, GE shifted away from the traditional model centered on standalone intelligent devices. Instead, it combined high-performance hardware, low-cost sensors, internet connectivity, and cutting-edge big data collection and analysis technologies—resulting in significant efficiency gains across existing industries and paving the way for the creation of entirely new ones.

　　This idea has a long history. As early as 2005, GE's aircraft engine division was restructured into GE Aviation, marking the beginning of a transformative shift in its business model. Initially, the company was solely focused on manufacturing aircraft engines. Today, however, it has evolved by equipping planes with numerous sensors that continuously collect real-time data on various aircraft parameters. Leveraging advanced big data analytics, GE now offers airlines a comprehensive suite of solutions—including maintenance management, operational reliability assurance, fleet optimization, and financial planning. Additionally, the company provides cutting-edge services like safety controls and flight prediction tools, gradually cementing its transformation into a true software-driven enterprise.

　　Take Italian Airlines as an example: GE has installed hundreds of sensors on each of their aircraft, enabling real-time collection of critical data such as engine performance, temperature, and fuel consumption. After analyzing this massive dataset using GE’s advanced software, the system precisely identifies optimal operational strategies. Thanks to this innovation alone, Italian Airlines has managed to save $15 million in annual fuel costs across its 145 aircraft. Moreover, by leveraging this data, the airline can proactively predict potential engine failures and schedule preventive maintenance before issues arise. This proactive approach not only prevents flight delays and rising costs but also significantly reduces the risk of more serious safety incidents caused by mechanical breakdowns.

　　GE is steadily transforming from an equipment manufacturer into a smart service provider through the deep integration of IT technology with its devices. As a result, the company’s business model is shifting—from solely selling equipment to becoming a comprehensive supplier of intelligent systems that combine smart devices, advanced analytics, and data-driven decision-making.

　　Experts generally agree that the value of the Industrial Internet will primarily manifest in three key areas: First, it enhances the efficiency of equipment utilization, leading to reduced energy waste and contributing indirectly to GDP growth. Second, it boosts the efficiency of system and equipment maintenance, cutting down on downtime and effectively boosting overall productivity. Finally, it streamlines and optimizes operational processes, freeing up valuable human resources for more strategic tasks.

　　GE predicts that if the Industrial Internet can boost productivity by 1% to 1.5% annually, it could increase average U.S. incomes by 25% to 40% over the next 20 years. Meanwhile, if other regions of the world manage to achieve half of the productivity gains seen in the U.S., the Industrial Internet could add $10 trillion to $15 trillion to global GDP during that same period.

　　To this end, GE established its Industrial Internet R&D center in Silicon Valley in 2011, and the research team has now grown to over a thousand members. In 2013, GE announced it would invest $1.5 billion over the next three years to advance the Industrial Internet initiative. This April, GE revealed that it plans to divest most of its $363 billion financial business within the next two years, aiming to make high-return industrial operations account for 90% of GE’s profits by 2018—up from 58% last year.

　　From this, we can see that the value of the industrial internet lies not only in helping leading manufacturers transition toward intelligent manufacturing systems and service providers, but also in potentially creating a new, high-end real-economy model with profit margins even higher than those in the financial sector.

　　Open Platform

　　Building a Smart Manufacturing "Apple" System

　　The United States is the birthplace of the internet, and from its very inception, the Industrial Internet has carried a distinct "internet" identity—namely, openness. Compared to the traditional internet, the Industrial Internet not only seeks openness across ICT domains like telecom networks, data storage, and transmission—but it also aims to foster open collaboration and seamless integration between manufacturing technologies and IT innovations.

　　This is an R&D initiative that bridges the gap between "two IT worlds." In March 2014, GE took a cross-industry leap by partnering with IT giants like IBM, Cisco, Intel, and AT&T to establish the Industrial Internet Consortium (IIC), a global alliance dedicated to advancing industrial innovation through digital transformation. The IIC operates on an open membership model, aiming to enable seamless data sharing across devices from different manufacturers. This goes beyond just Internet network protocols—it also encompasses critical parameters such as data storage capacity in IT systems, as well as connectivity standards for both interconnected and non-interconnected devices. By setting universal industry standards, the consortium seeks to dismantle technological barriers, harness the power of the internet to revitalize traditional industrial processes, and foster a deeper integration of the physical and digital realms. "Our goal is to accelerate the development, deployment, and widespread adoption of connected machines and devices," says the IIC, "while driving intelligent analytics and empowering workers with cutting-edge tools." Today, the Industrial Internet Consortium boasts 167 member organizations from around the globe.

　　This is an open system with ecological significance, not just industrial chain implications. In October 2014, GE announced that its Industrial Internet platform, Predix—essentially the operating system for industrial equipment—would be made available to companies worldwide. By bringing the collaborative model between platform providers and application developers from the internet sector into industry, GE has created a framework that enables users to rapidly develop and deploy customized industry-specific applications at scale. This type of industry ecosystem, strikingly similar to Apple’s approach in the smartphone space, will significantly accelerate the adoption and integration of the Industrial Internet across various manufacturing sub-sectors.

　　This is a standardized collaboration organization aimed at the global market. Currently, Chinese companies and institutions such as China Telecom, Haier, Huawei, the China Academy of Information and Communications Technology, and the Shenyang Institute of Automation under the Chinese Academy of Sciences have already joined the IIC, and they will work alongside the global industrial internet community to share cutting-edge technologies and resources in real time.

　　We believe that companies like GE established the Industrial Internet Consortium precisely to leverage America’s strengths in information technology. By deeply integrating with manufacturing, they aim to take the lead in shaping both technical and industry standards, ultimately positioning themselves as global leaders in this competitive landscape. As of now, the industrial internet has yet to become a formal U.S. national strategy—quite the contrast to Germany, which is mobilizing the entire nation to drive its Industry 4.0 initiative. However, given that many U.S. companies within the consortium play a key role in the country’s “reindustrialization” efforts, and considering that CPS (Cyber-Physical Systems) is one of the technology’s core components, numerous scholars are already studying the industrial internet as an industrial strategy equivalent to Industry 4.0.

　　The collaboration with China Telecom can be seen as the first step in extending an olive branch from the industrial internet to Chinese enterprises. But hold on—what does China stand to gain by participating in this new industrial initiative, which aims to revitalize American manufacturing?

　　By examining GE's transformation into intelligent manufacturing through the Industrial Internet, we find that this world-class manufacturing giant has already moved from individual equipment intelligence to system-level intelligence. It has evolved beyond mere automation and information technology, instead advancing toward the deep integration of ICT and machinery to unlock true industrial intelligence. This shift has given rise to a range of cutting-edge industrial intelligence services—such as equipment networking, data collection, big data analytics, and intelligent decision-making. While GE has championed and established the Industrial Internet Consortium and was among the first to open its Predix platform, a major manufacturer with a relatively narrow focus (primarily in sectors like aviation, energy, and healthcare) may not necessarily be able to evolve into a unified industrial application platform leader akin to Apple. The fragmented nature of various industrial sub-sectors and the inherent complexity of manufacturing technologies will only make the competition for智能制造 platforms—and the broader geopolitical dynamics surrounding it—increasingly intricate and unpredictable.

　　The field of intelligent manufacturing is likely to see a competitive landscape reminiscent of the one that once defined the smartphone industry. Germany’s Industry 4.0 and the U.S. Industrial Internet are poised to become the two dominant global platforms driving the future of smart manufacturing. As the author urges, China’s industrial and ICT sectors should seize this historic opportunity by working together—moving in complementary directions—to pool global innovation resources and accelerate the country’s industrial economy toward an intelligent transformation. In comparison, while the Sino-German Industry 4.0 dialogue, led by government initiatives, has progressed at a relatively slow pace, key heavyweight enterprises from both sides have yet to join each other’s industry collaboration networks or engage in deeper, market-driven partnerships aimed at jointly advancing conceptual discussions and co-defining industry standards. Meanwhile, the Industrial Internet, with its focus on open, market-oriented collaboration among businesses, has already taken a "late start but early lead" in China’s journey toward localization and adoption.

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　　By examining GE's transformation into intelligent manufacturing through the Industrial Internet, we find that this world-class manufacturing giant has already moved from individual equipment intelligence to system-level intelligence. It has evolved beyond mere automation and information technology, advancing instead toward the deep integration of ICT and machinery to unlock true industrial intelligence. This shift has given rise to a range of cutting-edge industrial intelligence services—such as equipment networking, data collection, big data analytics, and intelligent decision-making. While GE has championed and established the Industrial Internet Consortium and was among the first to open its Predix platform, a major manufacturer with a relatively narrow focus (primarily in sectors like aviation, energy, and healthcare) may not necessarily be able to evolve into a unified industrial application platform leader akin to Apple. The fragmented nature of various industrial sub-sectors and the inherent complexity of manufacturing technologies will only make the competition for智能制造 platforms—and the broader geopolitical dynamics surrounding it—increasingly intricate and unpredictable.

　　As U.S. manufacturing giants boldly abandon their lucrative financial divisions and wholeheartedly embrace the wave of smart manufacturing, the shift toward intelligent transformation is undeniably a new industrial revolution that will reshape the future landscape. Meanwhile, we observe that Chinese listed companies are raising massive amounts of capital by leveraging numerous buzzwords and emerging concepts—yet the vast majority of these funds are flowing into real estate, finance, and especially the stock market. This stark contrast between vision and reality should serve as a wake-up call for us! (Hu Hu, Zhu Duoxian)