Manufacturing is the foundation on which we build our country and make our country strong. In the new development stage, what level is China's manufacturing at? What is the development pattern like in the world manufacturing industry? How can China boost its core competitive edge in manufacturing?
China has become a manufacturing giant, but is not yet a manufacturing powerhouse. The proportion of middle and low-end manufacturing in China is on the high side, while the proportion of high-end manufacturing is on the low side. So there is still a big gap between China and the world-class level. In recent years, the proportion of manufacturing in China has declined prematurely and the economic development appears to separate from the real economy, which does not help boost China’s core competitiveness in manufacturing. There is still a big gap between China and the world's manufacturing powers in the fields of integrated circuits and special equipment, operating systems and industrial software, aircraft engines, agricultural equipment and so on.
Boosting the core competitiveness of manufacturing is a systematic program. In the new development stage, the following issues have to be done to boost the core competitiveness of China's manufacturing.
First, we will keep the proportion of manufacturing basically stable and raise the proportion of advanced manufacturing. Advanced manufacturing will mostly emerge based on the development of basic manufacturing. Without certain development scale, it will be difficult to promote the development of advanced manufacturing. In the later stage of industrialization, we need to consolidate the industrial foundation and keep the proportion of manufacturing basically stable. The basic conditions for boosting core competitiveness of the manufacturing sector are to reverse the distortion of factor prices and resource misallocation, prevent the risk of "separating from the real economy", and increase input and support for advanced manufacturing.
Second, we will accurately identify "bottlenecks" and "weak links" and increase investment in research and development of key technologies. As the "anchor" of a major economy, manufacturing is the core field of national comprehensive strength competition. Key technologies in the manufacturing sector may become a "bottleneck" or weak point in the game between great powers. We should accurately identify bottlenecks and weak links, strengthen international exchanges and cooperation in advanced manufacturing technologies, carry out joint research on generic technologies, high-end technologies and forward-looking technologies, increase investment in targeted research and development of key technologies, make key technologies independent and controllable, and maintain the security and stability of industrial and supply chains.
Third, we will strengthen the cultivation of high-quality enterprises and promote the development of advanced manufacturing clusters. Enterprises play a principal role in the development of manufacturing. We will strengthen the cultivation of high-quality enterprises, reinforce the principal role of enterprises in scientific research, and promote the cooperation between enterprises and scientific research institutes and universities. We will vigorously support the development of leading enterprises and give full play to the leading role of large enterprises in terms of funding, personnel and development of business incubation platforms. At the same time, we will work to nurture specialized and sophisticated enterprises that produce new and unique products, as well as champion enterprises. The agglomeration development of manufacturing is an important way to boost technological innovation. We will coordinate the industrial spatial distribution, facilitate the orderly transfer of manufacturing, accelerate the development of advanced manufacturing clusters, and launch a national program to foster clusters of strategic emerging industries.
Fourth, we will improve the system for scientific and technological innovation and provide policy support for the development of advanced manufacturing. A good innovation environment offers important conditions for stepping up theoretical innovation and technological advance. To boost the core competitiveness of manufacturing, we will further implement the innovation-driven development strategy, make plans for the development of advanced manufacturing, give play to the guiding role of fiscal funds, reinforce financing support for manufacturing enterprises, encourage enterprises to increase investment in innovation, promote enterprise innovation efficiency and market benefit, enhance innovation incentives, and hedge against innovation risks. We will optimize the personnel training structure, improve the quality of manufacturing personnel training, strengthen the infrastructure of raw materials and core components, and help advanced manufacturing enterprises to build well-known brand matrix.
Issued on March 24, 2022
Sun Hao, associate professor, School of Economics, Zhejiang Gongshang University