As the world’s largest manufacturer, China both enjoys substantial business opportunities and faces critical risks. To address today’s challenges and sustain business growth, the country’s manufacturers are accelerating innovation, with generative AI (genAI) as a key area of focus. This report analyzes the business value of genAI for smart manufacturing in China and details three examples of leading Chinese manufacturers adopting genAI to improve operational excellence, accelerate product innovation, and elevate workforce skills.