How to maintain competitiveness of Chinese manufacturing in response to practical challenges
Q&A on China's Economy at the Two Sessions | How can Chinese manufacturing maintain competitiveness in response to real challenges? ——Q&A on China's Economy at the Two Sessions, Part Four
Manufacturing is the cornerstone of the Chinese economy. Since last year, China's industrial economy has rebounded and improved, but faced with the exceptionally complex international situation and external challenges of "decoupling and chain breaking", there have been constant voices about "industrial chain relocation" and "China's manufacturing advantages no longer exist".
In the government work report submitted for review on the 5th, "vigorously promoting the construction of a modern industrial system and accelerating the development of new quality productive forces" ranked first in the government's work tasks for 2024, sending a clear signal of firmly building a solid foundation for the real economy.
From the new goals and measures highlighted in the report, to the case stories and professional interpretations brought by representatives, committee members, experts, scholars, and others, to the frontline interviews and research conducted by journalists, we have gained a clearer understanding of how Chinese manufacturing can maintain competitiveness and achieve steady development.
Faced with changes, strong confidence and resilience
Under the complex and severe external environment, the trend of Chinese manufacturing enterprises has attracted much attention.
We are achieving localization of industrial robot controllers, servo systems, etc., accelerating the speed of overseas delivery, and increasing our international market share, "said Zhang Jin, the president of Shenyang Xinsong Robot Automation Co., Ltd., using his own case to demonstrate that in the field of robotics that developed countries are competing to layout, by firmly grasping core technologies and completing the industrial chain," even if there are ups and downs, we can steadily move forward.
This is a portrayal of enterprises fighting in the market, and also a microcosm of Chinese manufacturing responding to challenges.
In the past year, the international environment has been characterized by high winds and strong waves. Geopolitics, great power competition, and other impacts are becoming increasingly evident, with developed countries' manufacturing industries returning and Mexico, Southeast Asia, and other regions experiencing rapid economic development, intensifying competition. These are objective realities that should not be avoided. However, the mixed opinions of criticizing Chinese manufacturing and criticizing the Chinese economy require a dialectical analysis.
In response to challenges and overcoming difficulties, China's manufacturing industry and trade scale have achieved reasonable growth in volume, maintaining overall market share stability.
According to officials from relevant ministries and commissions, in 2023, China's total industrial added value will approach 40 trillion yuan, accounting for 31.7% of GDP. The scale of the manufacturing industry has ranked first in the world for 14 consecutive years.
The series of statements in the government work report, such as "significant progress has been made in the construction of a modern industrial system" and "a number of major industrial innovation achievements have reached the international advanced level", highlight the solid pace of national manufacturing.
Has there really been a "wave of industrial chain transfer" as claimed by foreign media?
It cannot be denied that due to factors such as costs, the production of some labor-intensive goods has shifted to other countries. However, due to China's deep integration into the global value chain division of labor, many companies have withdrawn from China and returned, or still need to import a large amount of intermediate products from China.
We cannot generalize and regard individual links as the overall trend, but we must also see the objective laws of industrial development. Our industry is reshaping its competitiveness in the process of transformation and upgrading, "said Song Xiquan, Chairman of Taihe New Materials Group Co., Ltd., using the textile industry as an example. Although some processing links have been relocated, the overall added value is increasing. In 2023, China's high-performance fiber production capacity will account for over one-third of the world's total, and the export value will increase by 14.4% year-on-year.
According to authoritative data, among the 500 major industrial products, more than 40% of China's products rank first in the world in terms of output, and a batch of important products such as personal computers, mobile phones, and solar panels account for more than half of the world's output. The manufacturing industry accounts for over 30% of the global market share.
The advanced manufacturing industry is accelerating its development, further gathering the high-tech manufacturing industry chain. 45 advanced manufacturing clusters from various countries and 178 national high-tech zones are laid out vertically and horizontally, forming clusters. Last year, the equipment manufacturing industry, which demonstrated industrial supporting and integration capabilities, exported 13.47 trillion yuan, and the export of "new three types" products exceeded one trillion yuan.
Taking China's new energy vehicles as an example, the smooth operation of the world relies on a synergistic industrial chain of technology, quality, and efficiency, "said Zhu Huarong, Chairman of Changan Automobile. Structural upgrading is becoming another important competitiveness of the manufacturing industry.
Has' decoupling and chain breaking 'impacted China's position in the global industrial and supply chains? Chinese manufacturing is equally confident in answering——
Having access to all industrial categories in the United Nations Industrial Classification; Form a group of advantageous industries with full industry chain competitiveness in some key areas and key tracks; We have cultivated 12000 specialized and innovative "little giant" enterprises, with over 90% of them being supporting suppliers to well-known domestic and foreign large enterprises.
Tesla's Shanghai Gigafactory has a localization rate of over 95% for its components. Tesla's Vice President of Manufacturing, Song Gang, said that Tesla and Chinese suppliers are "mutually beneficial".
The Spanish global website published an article stating that "it is impossible to find alternative suppliers for thousands of basic products made in China". The 2023/24 German Business Confidence Survey report recently released by the German Chamber of Commerce in China shows that more than half of the surveyed companies plan to increase their investment in China in the next two years, partly due to improved supply chains and enhanced innovation capabilities.
We have advantages such as a complete industrial system and a huge market size, and the long-term positive fundamentals of the manufacturing industry are still stable, "said Zhang Li, the director of the China Electronics Information Industry Development Research Institute. This is where the confidence and resilience of Chinese manufacturing lie.
Dealing with challenges and maintaining a 'stable' mindset
To maintain our existing advantages, we must maintain a "stable" determination. Faced with the deep adjustment of the global industrial chain and supply chain pattern, how will big country manufacturing respond with "stability"?
——First, the volume needs to be stable. The government work report released a policy signal of stable growth to maintain the stable operation of the industrial economy.
Minister of Industry and Information Technology Jin Zhuanglong stated at the "Ministerial Channel" of the Second Session of the 14th National People's Congress on the 8th that this year, the Ten Major Industry Stable Growth Work Plan will be implemented in depth, and industrial provinces and cities will be encouraged to "bravely shoulder the heavy responsibility".
Traditional industries account for over 80% of the manufacturing industry and are the foundation of the modern industrial system. They are related to economic development and national economy and people's livelihood, and are the basic foundation for China to maintain its position as the world's largest manufacturing country. Traditional industries cannot be simply withdrawn as "low-end industries". The report specifies a series of deployments aimed at promoting the transformation and upgrading of traditional industries.
Through the adjustment of traditional industrial structure, Fushun, the old industrial base, has been revitalized. Representative Gao Jian, Mayor of Fushun City, said that we are building a national level high value-added new raw material base and planning new advantages.
——还要体系全，保持好产业体系的完整。
2023年，广西壮族自治区百色市新型生态铝产业产值突破1200亿元，立足铝土矿资源丰富特点，形成从铝资源到精深加工的完整产业链。
报告提出“提升东北和中西部地区承接产业转移能力”，并对培育壮大先进制造业集群等作出部署。“这将进一步推动形成区域合理分工、联动发展的产业格局。”百色市市长葛国科代表说，百色正全力推进中国—东盟产业合作区百色片区建设，打造承接国内外产业转移高地。
——更要链条强，增强产业竞争力。
工业和信息化部表示，将大力实施制造业重点产业链高质量发展行动。一链一策，补短板、锻长板、强基础，增强产业链供应链韧性和竞争力。
“今年，我们将全面取消制造业领域外资准入限制措施，也准备试点开放互联网数据中心等增值电信业务。”金壮龙说。
抓住机遇，发展新质生产力
处在向中高端爬坡过坎的重要关口，中国制造要加快形成新质生产力。
政府工作报告鲜明提出“充分发挥新型举国体制优势，全面提升自主创新能力”。从“强化基础研究系统布局”到“支持有实力的企业牵头重大攻关任务”，报告提出一系列举措。
中试，产品从研发到生产的必经之路。由于投入较高，不少企业缺乏中试能力。聚焦这一“痛点”，报告明确“加快重大科技基础设施体系化布局，推进共性技术平台、中试验证平台建设”。
工业和信息化部今年将继续实施好科技重大专项和重点研发计划，建设一批国家制造业创新中心，发展高科技，实现产业化，加快发展新质生产力。
聚焦新兴产业、未来产业，培育更多新赛道。
“积极打造生物制造、商业航天、低空经济等新增长引擎”“开辟量子技术、生命科学等新赛道”“创建一批未来产业先导区”……报告围绕积极培育新兴产业和未来产业，举措实、部署细。
“赢得发展先机，争夺技术高地势在必行。”武汉高德红外股份有限公司董事长黄立代表说，今年企业要在低空经济、脑机接口等领域发力。
工业和信息化部负责人表示，将加快前沿技术和共性技术供给、培育优势企业、完善产业生态。在未来产业方面，把通用人工智能、人形机器人、脑机接口等作为下一步重点布局的方向。定期发布前沿技术推广目录，围绕重点领域打造应用试验场，加快产业培育。
抓住数字机遇，加速“人工智能+”。
我国建成全球规模最大的信息通信网络，算力规模全球第二，广泛深刻的数字变革是制造业升级的最有力抓手之一。
“以‘数’谋‘新’和加‘数’向‘实’是产业转型的必然，也是构筑发展新优势的关键。”中兴通讯股份有限公司高级副总裁苗伟代表说，用好新型生产工具，有信心立足基础、抢抓机遇、加快发展。
Information source: Xinhua News Agency
