A research project by researchers including Zhang Yuanfang，a counsellor at the Counsellors’ Office of the State Council，has found that the institutional architecture underpinning China’s industrial internet is so patchy that market players exhibit a low level of awareness and consensus. Laws are absent that govern “property right protection” and “asset ownership verification” for industrial data. Government subsidies have produced under whelming results. As a result，the industrial internet has failed to make a difference to the critical battle of upgrading the industrial base and modernizing industrial chains. The researchers make policy recommendations，which call for，among other things，clearly defining the name and positioning of the industrial internet，strengthening support for addressing its choke points，speeding up legislation and development of trading arrangements for industrial data ownership verification，upgrading the investment and financing system and fiscal support system，and nurturing industrial internet clusters across various sectors.