On October 1, 2025, China will enforce GB30253-2024, a landmark standard for permanent magnet synchronous motors that mandates a significant leap in energy efficiency. This regulation, which upgrades minimum efficiency requirements from IE3 to IE4 (and IE5 for high-demand applications), is set to  20% of China’s existing low-efficiency motor stock and drive $30 billion in new investments in high-performance motor production.​

The standard’s impact is far-reaching. For 0.55kW to 375kW asynchronous motors—widely used in HVAC systems and industrial pumps—manufacturers must now achieve a minimum efficiency of 94.7%, up from 92.3% under the 2013 standard. For larger motors (400kW to 1000kW) and high-voltage models (3kV, 6kV, 10kV) used in mining and metallurgy, the new rules fill a longstanding regulatory gap, ensuring consistent efficiency across all industrial sectors. According to TECO East Yuan Motor, a leading Taiwanese manufacturer with operations in China, compliance will require redesigning core components, such as stator windings and cooling systems, but will reduce end-users’ energy costs by 15-20% over a motor’s 15-year lifespan.​

To support adoption, the Chinese government has paired the standard with financial incentives, including tax breaks for manufacturers and subsidies for enterprises replacing old motors. The "Motor Efficiency Improvement Plan (2023-2025)" also targets a 45% market share for high-efficiency motors by 2025—a 10% increase from 2024. For global players like Siemens and ABB, this creates opportunities to supply advanced motor controls and system integration services, while domestic firms such as Inovance Technology and Wolong Electric are ramping up production of IE5-compliant motors to capture growing demand in the EV and robotics sectors.