Speech by Chen Bin, Executive Vice President of China Machinery Industry Federation, at the 2018 Annual Conference of Provincial Equipment Manufacturing Industry Association

Editor's note:12moon28The third general meeting of the first session of the Shandong Equipment Manufacturing Industry Association and the Intelligent Manufacturing Forum were held in Qufu. Chen Bin, Executive Vice President of China Machinery Industry Federation, attended the meeting and delivered a speech.According to the recording,The full text of the speech is now released for all member units and relevant units of the equipment manufacturing industry in the province to learn and exchange.

Dear leaders and comrades, good morning:

I am delighted to attend the 2018 Annual Conference and Economic Situation Report of Shandong Equipment Manufacturing Industry Association. Here, on behalf of the China Machinery Industry Federation, I extend warm congratulations on the convening of the conference!

This year marks the 40th anniversary of the reform and opening up. The Central Committee of the Communist Party of China and the State Council have just held a grand meeting to celebrate the 40th anniversary of the reform and opening up. The China Machinery Industry Federation also held a symposium in Beijing on the 20th of this month to celebrate the 40th anniversary of the reform and opening up of the machinery industry. Several former ministers also participated in the symposium, and at the symposium, everyone reviewed the achievements of the reform and opening up of the machinery industry in the past 40 years. Data shows that in the forty years since the reform and opening up, the total assets of China's machinery industry have increased from 1.67 trillion yuan in 1995 to 22.33 trillion yuan in 2017, a growth of 13.34 times; The industrial added value was 9.72 billion yuan in 1978 and about 6 trillion yuan in 2017, an increase of approximately 600 times; The main business revenue achieved 24.5 trillion yuan in 2017, which is 72.6 times the record of 337.92 billion yuan in 1990; The total profit in 2017 was 1.71 trillion yuan, 247.6 times that of 6.92 billion yuan in 1978.

Over the past 40 years, China's machinery industry has continuously increased its ability to provide equipment for the national economy and defense construction. The output of a number of key equipment products ranks among the top in the world. The output of power generation equipment in 1978 was 4.8383 million kilowatts, and from 2006 to 2017, the output exceeded 100 million kilowatts for 12 consecutive years, ranking first in the world; The automobile production reached 29.0154 million units in 2017, which is 194.6 times that of 149100 units in 1978; For six consecutive years, it has ranked first in the world. The production of CNC machine tools was 581 units in 1978 and 223000 units in 2017, which is 385 times that of 1978; The annual output of internal combustion engines was 29.0567 million kilowatts in 1978, and 2.674 billion kilowatts in 2017, which is 92 times that of 1978; The lifting equipment produced in 1978 was 274200 tons, and the output in 2017 was 11.3392 million tons, which is 41.35 times that of 1978; Up to now, the comprehensive mechanization rate of crops in China has reached 66%, and the domestic market supply rate of agricultural machinery and equipment has reached 90%.

Since the beginning of the new century, a total of 5538 scientific and technological achievements have won national and industry science and technology awards. Currently, the proportion of domestic technology sources for mechanical leading products has increased from 24.5 in the 1980s to 70% at present. The number of mechanical standards has developed from 3400 in 1978 to 17200 currently. The consistency between key areas and international standards has reached over 80%, and the self-sufficiency rate of mechanical products has also exceeded 85%, basically changing the situation in the 20th century where advanced equipment mainly relied on imports. According to the statistics of the foreign trade business of the former Ministry of Machinery, the total export value of mechanical and electrical products in China was only 261 million yuan in 1978, and reached 132.147 billion yuan in 2017. The machinery foreign trade data recorded by the customs began in 2003, when the machinery industry achieved a total export value of 55.99 billion US dollars. In 2006, it achieved its first foreign trade surplus, from a net importer to a net exporter, and reached 405.89 billion US dollars in 2017. From 2003 to 2017, the average annual growth rate was 15.2%. Over the years, the trade surplus has been around 100 billion US dollars. The import and export of China's machinery industry accounts for 14.35% of the country's total foreign trade volume. The achievements made in the 40 years of reform and opening up of the machinery industry are the embodiment of the Party's policies and guidelines in the implementation of the machinery industry, and the crystallization of the wisdom of several generations of integrated innovation and hard work of robots. This includes the hard work and contributions of entrepreneurs and comrades in the equipment manufacturing industry in Shandong Province.

Today, the Shandong Equipment Manufacturing Industry Association held a conference here to summarize its work, commend advanced enterprises, strengthen learning and exchange among enterprises, and explore the path and methods for the transformation and upgrading of Shandong's equipment manufacturing industry, guiding and promoting enterprises to accelerate the implementation of new and old kinetic energy transformation and high-quality development. At a time when the economic operation is under great downward pressure, the convening of the conference is very timely and necessary. Since the beginning of this year, the economic operation of the industry has encountered some difficulties, especially the rise in raw material and labor costs, the decrease in enterprise profits, the difficulty and high cost of financing for private enterprises, the decline in investment and financing, the sluggish market, and the continuous friction in foreign trade. There are more unfavorable factors and uncertainties, and some enterprises lack information. This requires us to seriously study and understand the central government's spirit. While boosting confidence and maintaining energy, we need to see that the external environment has undergone significant changes, the uncertainty factors in the world economy have increased, and we need to see that the domestic structural adjustment is in a critical period. The transformation of old and new driving forces still needs time, and the innovation led development momentum is not strong enough. We need to see that China's machinery industry has developed rapidly for many years, with a large scale of development and a high base, It is normal for the external environmental impact and the growth rate of new and old kinetic energy conversion to decline appropriately. There is no need to panic. We need to scientifically assess the situation, properly respond to various challenges, see favorable factors, remain calm in the face of changes, and maintain strategic determination. Just a few days ago, the Central Economic Work Conference was held, and General Secretary Xi Jinping made an important speech. This is a very important speech. We hope that everyone will attach great importance to it, study it deeply, understand it seriously, and effectively implement the work. Here, we also hope that the Shandong Equipment Manufacturing Industry Association will not forget its original intention, remember its mission, adhere to the principle of industry based and service-oriented, adhere to the principle of scientific and democratic organization, strive to make the association a home of members, and follow the principles of marketization and socialization. Specialization development direction, actively innovating internal operating system and mechanism, Improve the quality of the team, strengthen core businesses, build service platforms, enhance service capabilities and levels, strive to build a brand association, provide high-quality and high standard services, and make the association a well-known association that can be trusted by government departments, indispensable for industry development, trusted by enterprises and members, and influential both inside and outside the province. The China Machinery Industry Federation will continue to care for and support the development of the Shandong Equipment Manufacturing Industry Association, strive to do a good job in various service work, and work together with everyone to promote industry revitalization and association development.

最后祝愿大会圆满成功，祝愿各企业兴旺发达！