Equipment manufacturing industry is one of the major industries of the Chinese economy. Previous researches have revealed that the industry has dilemmas of unreasonable industrial structure and high pollution. Using the data of 30 provinces in 2006-2015 in China, this study calculated a comprehensive pollution indicator when estimating the possible pollution reduction brought by the optimization of industrial structure and then evaluated the reasonable level of capital allocation of provinces and industries by using the methods of nonlinear programming and stochastic frontier method. Under the target of collaborative emission reduction, the results show that the optimized output of China's equipment manufacturing industry could be increased by 5.42%, the energy intensity could be reduced by about 10.4%, and the comprehensive emission intensity could be reduced by about 7.47%. Due to the industry heterogeneity and regional heterogeneity, industrial capacity should be transferred between industries and regions. Since the capital investment in the equipment manufacturing industry is significantly mismatched between industries and regions, the capital allocation of provincial industries in China needs to be adjusted properly. This study provides theoretically and practically reference for collaborative pollution reduction, industry restructure, spatial layout and capital investment, which contributes to achieving the stereoscopic optimization of equipment manufacturing industry.