Industry 4.0, Industrie 4.0 or the fourth industrial revolution, is a collective term embracing a number of contemporary automation, data exchange and manufacturing technologies. It had been defined as 'a collective term for technologies and concepts of value chain organization' which draws together Cyber-Physical Systems, the Internet of Things and the Internet of Services.
Industrie 4.0 facilitates the vision and execution of a "Smart Factory". Within the modular structured Smart Factories of Industry 4.0, cyber-physical systems monitor physical processes, create a virtual copy of the physical world and make decentralized decisions. Over the Internet of Things, cyber-physical systems communicate and cooperate with each other and with humans in real time, and via the Internet of Services, both internal and cross-organizational services are offered and utilized by participants of the value chain.

Design Principles
1.There are six design principles in Industry 4.0. These principles support companies in identifying and implementing Industry 4.0 scenarios.

2.Interoperability: the ability of cyber-physical systems (i.e. workpiece carriers, assembly stations and products), humans and Smart Factories to connect and communicate with each other via the Internet of Things and the Internet of Services
3.Virtualization: a virtual copy of the Smart Factory which is created by linking sensor data (from monitoring physical processes) with virtual plant models and simulation models
4.Decentralization: the ability of cyber-physical systems within Smart Factories to make decisions on their own
5.Real-Time Capability: the capability to collect and analyse data and provide the derived insights immediately
6.Service Orientation: offering of services (of cyber-physical systems, humans or Smart Factories) via the Internet of Services
7.Modularity: flexible adaptation of Smart Factories to changing requirements by replacing or expanding individual modules

China follow the concept of "industrial 4.0" with positive attitude and improve itself.