According to the Ministry of Industry and Information Technology, China has instituted a four-tier smart factory framework to spur the extensive development of smart factories and support enterprises in their shift from digitization and networking to intelligence. Presently, the smart factory framework is categorized into four tiers: foundational, advanced, exemplary, and leading. To date, a total of 35,000 foundational-tier, over 8,200 advanced-tier, and over 500 exemplary-tier smart factories have been established. Additionally, 15 enterprises have been chosen for the nurturing list of leading-tier smart factories. These factories have pioneered innovative models, including shared manufacturing for construction machinery, island-style manufacturing for automobiles, and agile customization for home appliances. Following the execution of the smart factory gradient nurturing initiative, the average product defect rate has plummeted by 47%, and the average product research and development cycle has been curtailed by 38%.