China's Manufacturing Industry Welcomes the "Upsurge" Policy

Following the implementation of the seven major engineering packages and the recently launched “railway transportation” and “modern logistics” project packages, the National Development and Reform Commission re-released “emerging industries” and “enhanced the core competitiveness of the manufacturing industry on July 30. Force "two major engineering packages. As China is in a critical period of economic transformation and upgrading, the direction of development of the manufacturing industry is of particular concern. Experts pointed out that the implementation of relevant engineering packages will lead a batch of key manufacturing sectors to take the lead in completing the upgrade and then radiating to more industries, thereby further enhancing the overall strength of China's real economy.

Six major areas of force

From the faltering old industrial bases in Northeast China to the Guangdong processing OEMs with small profits and quick turnover, “manufacturing is big but not strong” seems to have been a dark cloud that entrenched the Chinese economy.

Take an iPhone with a price of 650 dollars as an example. If you remove important components such as flash memory, screen, CPU, and Bluetooth from Europe, the United States, South Korea and Japan, the overall assembly cost is only 15 US dollars, which means that China's manufacturing industry Only 2.3% of the selling price can be allocated. Another example is robots. China’s robot sales rank top in the world, but more than 70% of its parts come from foreign countries.

How can this situation be reversed? The policy has apparently been taken. According to the person in charge of the National Development and Reform Commission, the major engineering package for enhancing the core competitiveness of the manufacturing industry will focus on the country’s strategic needs and will accelerate the development of rail transportation equipment, high-end ships and marine engineering equipment, industrial robots, new energy vehicles and modern agriculture. Key technology industrialization projects in six key areas such as machinery, high-end medical devices and pharmaceuticals.

The person in charge revealed that the relevant departments will, in accordance with the deployment, strive to break through a number of major key technologies in a short period of time to achieve industrialization, establish a number of industrial alliances with continuous innovation and development capabilities, and form a group of leading companies with international influence. Create a batch of well-known brands made in China, create a number of internationally recognized Chinese standards, and accelerate the transformation and upgrading of China's manufacturing industry.

There is a stress on the layout of policies

Regarding why six major areas such as rail transportation equipment were selected as the breakthrough, Cai Ronghua, deputy director of the Industrial Coordination Department of the National Development and Reform Commission explained that the criteria that policy makers follow when looking for policy development points are: large market potential and high correlation with relevant industries. It has a strong ability to drive the development of the entire economy and has a certain industrial base.

For example, China uses 2% of the arable land to feed 20% of the world's population. The pressure on agricultural production is high. To increase the efficiency of agricultural production and ensure the security of food, agriculture must follow the path of agricultural mechanization. To achieve agricultural mechanization, we must have Modern agricultural machinery as a support. Another example is that China has a coastline of 18,000 kilometers. 90% of the imported and exported goods are transported by ships. At the same time, some of the new exploration resources are in the ocean. Therefore, the shipbuilding industry and marine engineering equipment industry are particularly important.

“In the past, we have promoted the upgrading of manufacturing industries, but often market demand has not kept pace with the situation. As a result, after the upgrade, it is not as profitable as before the upgrade. Nowadays, the market demand is also escalating, so the introduction of engineering packages at this time is relatively speaking Get more market support.” Cao Jianhai, a researcher at the Institute of Industrial Economics of the Chinese Academy of Social Sciences, told the reporter during the analysis of the policy.

At the specific implementation level, related parties stated that they will give full play to the guiding role of government funds, guide and stimulate more social capital, especially private capital, to participate in project construction and actively explore the combination of government funds and credit, bonds, funds, and insurance. This kind of financing combination will increase the efficiency of capital use. At the same time, it will also explore the adoption of government services, the introduction of risk compensation mechanisms, and support for the promotion and application of innovative products.

Enhance economic "immunity"

Concentrate on breakthroughs, with points and face. What is the “upgrading boom” that the manufacturing industry is about to usher in, and what does this mean for the Chinese economy? Experts generally believe that escaping from the low value-added position of traditional manufacturing industries will extend to the development and service of the “smile curve”. It means developing high-tech industries and increasing the proportion of service industries surrounding the manufacturing industry. This will further improve China's economic structure and enhance the "immunity" of China's economy in responding to risks.

The future is bright and the road is not smooth. According to Xu Hongcai, a researcher at the China Center for International Economic Exchanges, the challenge of achieving the goals of China's manufacturing industry is first and foremost the challenge of talents. He believes that many talents do not have an effective combination and do not create an institutional mechanism and environment conducive to talents to fully exert their independent innovation capabilities, so they must encourage innovation and entrepreneurship.

“Manufacturing is big but not strong” is, to a large extent, a microeconomic issue. On the one hand, many manufacturing companies are obsessed with government orders; on the other hand, the development of many industries depends too much on investment rather than consumption.” Cao Jianhai said Only engaged in high-end manufacturing does not mean that it has competitiveness, but also depends on the extent to which it meets market demand. The release of this project package undoubtedly points the way for faster and better manufacturing upgrades.

In fact, the results of the upgrade of China's manufacturing industry have already begun. In the first half of the year, the industrial added value of the six high energy-consuming industries accounted for a 0.3 percentage point drop in the national industrial share. With this “overwhelming power”, smart TVs and urban tracks And the production of vehicles, solar cells, and water pollution control equipment has achieved an increase of more than 25% respectively.