On July 7, U.S.-based General Electric (GE) partnered with China Telecom Group to integrate its industrial internet platform, Predix—often referred to 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 make inroads into China's cloud storage, telemedicine applications, smart manufacturing, and cloud computing sectors.

　　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. industries—and information and communications 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 driving 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 progress of China's "Internet+" initiative within the country'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 potential 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 aviation engines. Today, by equipping aircraft with numerous sensors that continuously collect real-time data on various flight parameters, GE leverages advanced big data analytics to deliver comprehensive solutions to airlines—including maintenance management, operational reliability assurance, fleet optimization, and financial planning. Additionally, GE now offers a wide range of value-added services, such as safety controls and flight performance forecasting, effectively positioning itself as a full-fledged software company.

　　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 the optimal operating methods. 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 not only prevents flight delays and rising operational 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 modestly to GDP growth. Second, it boosts the efficiency of system and equipment maintenance, cutting down on downtime—and this, in turn, translates into higher productivity. Finally, it optimizes and streamlines operations, effectively 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 current R&D team has 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. The company also aims to ensure that by 2018, 90% of GE’s profits will come from its high-margin industrial operations—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-inspired" hallmark: 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 systems.

　　This is an R&D initiative that bridges the "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). The IIC operates on an open membership model, dedicated to enabling seamless data sharing across devices from different manufacturers. This effort 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. At its core, the consortium aims to break down technological barriers by developing universal standards, leveraging the power of the internet to revitalize traditional industrial processes, and ultimately fostering a deeper integration between the physical and digital realms. "Our goal," says the organization, "is to accelerate the development, deployment, and widespread adoption of connected machines and devices, drive smarter analytics, and empower workers with cutting-edge tools." Today, the Industrial Internet Consortium boasts 167 member organizations.

　　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 empowers users to rapidly develop and deploy customized industry-specific applications at scale. This type of industrial ecosystem, strikingly similar to Apple’s approach in the smartphone space, is poised to 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 the purpose behind companies like GE establishing the Industrial Internet Consortium is 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. So far, however, the industrial internet has not yet become a core component of U.S. national strategy—quite the contrast to Germany, which has mobilized the entire nation to drive its Industry 4.0 initiative. That said, given that many U.S. companies within the consortium play a key role in the country’s “reindustrialization” efforts, and considering that one of the technology’s central pillars is the CPS (Cyber-Physical Systems), numerous scholars are now studying the industrial internet as an equivalent, parallel industrial strategy to Industry 4.0.

　　The collaboration with China Telecom can be seen as the first step in extending the industrial internet's olive branch 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 IT integration, instead advancing toward the deep convergence of ICT and machinery—unlocking true industrial intelligence. This evolution has given rise to a suite of cutting-edge industrial intelligence services, including device connectivity, 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 aerospace, energy, and healthcare—may not necessarily be able to replicate Apple’s success as a unified industrial app-platform leader. The fragmented nature of various manufacturing sub-sectors, combined with the inherent complexity of advanced manufacturing technologies, will only make the competition for智能制造 platforms—and the broader geopolitical dynamics surrounding them—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 aligning their efforts, collaborating closely, and pooling global innovation resources to accelerate the country’s industrial economy toward an intelligent transformation. In comparison, the Sino-German Industry 4.0 dialogue, driven primarily by government initiatives, has progressed at a relatively slow pace. So far, major companies from both nations have yet to join each other’s industry collaboration organizations, making meaningful strides in jointly advancing conceptual discussions or co-developing standardized frameworks. Meanwhile, the Industrial Internet—rooted in open, market-driven partnerships among businesses—has already taken a lead in China’s journey toward localization, demonstrating that sometimes "latecomers can leapfrog ahead."

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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 IT integration, advancing instead toward the deep convergence of ICT and machinery—unlocking true industrial intelligence. This evolution has given rise to a suite of cutting-edge industrial intelligence services, including device connectivity, 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 aerospace, energy, and healthcare) may not necessarily be able to replicate Apple’s success as a unified industrial app-platform leader. The fragmented nature of various manufacturing sub-sectors, combined with the inherent complexity of advanced manufacturing technologies, will only make the competition for智能制造 platforms—and the broader geopolitical dynamics surrounding them—increasingly intricate and unpredictable.

　　As U.S. manufacturing giants boldly abandon their lucrative financial divisions to wholeheartedly embrace the wave of smart manufacturing, their intelligent transformation is undoubtedly 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)