The eastern coastal city of Qingdao, Shandong province has been ramping up efforts to become an industrial internet powerhouse in the world, said local officials.

The city has made great advances in this area, as it has launched a number of measures and guidelines to facilitate industrial internet development, covering new infrastructure construction, as well as cutting-edge technology implementation.

The industrial internet refers to a network of combined, advanced machines with internet-connected sensors, which will collect and analyze data from consumers, suppliers, as well as factories. It is designed to allow companies to customize products at speed and scale, while boosting productivity and reducing costs.

The move is aimed at fueling industrial upgrading and the development of smart manufacturing in Qingdao, a powerful industrial city, according to local authorities.

The city has built a total of 15,000 5G base stations to generate new technologies, experiences, and standards for digital construction and applications in various fields.

Qingdao is also encouraging local enterprises to apply internet technologies to optimize the traditional industrial process to improve production efficiency.

Last year, the digitalization rate of production equipment in Qingdao hit 53.4 percent, while the penetration rate of digital R&D and design tools reached 87.4 percent. The digitalization rate of key processes stood at 54.6 percent. The average operating costs of local enterprises decreased by 27 percent, while the average product R&D cycle shortened by 26 percent.

COSMOPlat, an industrial internet platform launched by Qingdao-based home appliance giant Haier Group, is a large-scale customization platform that allows users to engage in the industrial process across 15 vertical industries, including manufacturing, agriculture, clothing, culture, as well as tourism. Vertical industry refers to a group of companies focusing on a shared niche or specialized market spanning a number of industries.

With 340 million users, the platform will also contribute greatly to the city's efforts to build a competitive industrial internet industry, said local officials.