China’s manufacturing industry “hidden champions” too little need to accelerate upgrades

Manufacturing is a big country of the weighing equipment is the basis of the real economy, the development of high quality is the top priority of the Chinese economy. According to the National Bureau of Statistics, China’s manufacturing industry continued to expand in the world’s share, by 2010 the proportion of total global increase to 19.8%, as the world’s manufacturing superpower, since for many years ranked first in the world. While the scale of the rapid growth of China’s manufacturing industry industrial structure optimization. Speed ​​up transformation and upgrading of traditional industries, in 2018, high-tech manufacturing, equipment manufacturing value added increased by 11.7% over the previous year, 8.1%, faster than the growth rate of above-scale industrial added value. In addition, the manufacturing of digital, networked, intelligent level continued to improve, the emergence of a group of “Internet + manufacturing” new model, the Internet industry has made substantial progress, intelligent manufacturing development has achieved positive results. China is a big step forward from the manufacturing power to create power. How to promote the manufacturing sector from the “big” to “strong”? How to help manufacturing companies better development? Beijing News interview with Professor Nie Huihua School of Economics, Renmin University of China. [1] sound, the status of the manufacturing sector actually declined, the development space is limited, but still great potential for development. This has some obvious manifestation. For example, CONTROL ENGINEERING China Copyright , young people would rather delivering food, I do not want to enter the factory. 2, in theory, as long as there is demand, profits, investment will increase. Therefore, to stabilize investment in manufacturing, the key is to market demand, corporate profits. 3, “ownership discrimination” the next plane is running out, but we should be highly alert to a “scale of discrimination”. China’s manufacturing industry could “not rich expensive” to accelerate automation Beijing News: 2018 Chinese GDP was 90.03 trillion yuan, manufacturing output was 26.48 trillion yuan, the manufacturing sector in the national economy can be said to be decisive. How to look at the status of the development of manufacturing and its role in China’s economic system? Niehui Hua: I think, characteristic of China’s manufacturing industry as a whole is “large” in some areas is “big and strong” and “sophisticated” in a very few areas. At present, China is the world’s most complete industry categories of countries, is the world’s only country with all industry categories. China A total of 41 industry categories, 191 classes and 525 subclasses. In all industrial sectors, the manufacturing industry with 30, accounting for about three-quarters. On the one hand, the manufacturing sector continues to be China’s most important industry, but also one of the largest employment sectors; on the other hand, the status of the manufacturing sector actually declined, the development space is limited, but still great potential for development. This has some obvious manifestation. For example, CONTROL ENGINEERING China Copyright , young people would rather delivering food, do not want into the factory; manufacturing profit margins are tiny, the average profit margin of 500 manufacturers of less than 4%, while real estate and business financial corporate profit margins much higher than this. Beijing News: In terms of scale, China has a manufacturing superpower, but from the quality point of view, China’s manufacturing industry is still room for improvement. Compared with the international advanced level, where major gaps in China’s manufacturing sector? What are the current development of China’s manufacturing industry is the main dilemma? Niehui Hua: I think that the presence of Chinese manufacturing gap with the international advanced level in three areas. First, the lack of major inventions, that is a major landmark achievement not many; second, the lack of ownership in key technologies, such as chip technology, aircraft engine technology; third CONTROL ENGINEERING China All Rights Reserved , “hidden champions” too little, that occupied most of the domestic and international markets in an industry, SMEs are less known to the public. The main dilemma development of China’s manufacturing industry, first of all, rising labor costs on the one hand, on the other hand inadequate level of automation, we can say that after the pursuers (developing countries), before the intercept (American and European countries). And environmental pollution factors increasingly become an obstacle to the extensive expansion of China’s manufacturing industry may face “not rich expensive” situation. In addition, China’s industrial land generally tight , in the past a lot of industrial parks utilization rate is not high, but can not vacate, led to the current lack of industrial land into pieces. Another problem is the high cost of financing for SMEs. Beijing News: In terms of labor issues, with a view of the Lewis turning point has come, whether you agree with? In the case of low-cost labor advantage gradually disappear, how to enhance labor productivity in manufacturing? Niehui Hua: I can not accurately determine whether the arrival of the Lewis turning point, but it certainly is more expensive labor force, labor costs in manufacturing are rising rapidly. In this case, enterprises should accelerate automation, mechanization, take advantage of “mutualNetworking + “to upgrade as soon as possible to achieve the improvement of labor productivity, the first is to rely on technology level, such as the level of automation; the second is to improve the management level of Chinese enterprises in this regard there is great potential mining; third, maintaining market competition, the competition will be survival of the fittest, accelerate the upgrading of productivity. the problem now is that many low-productivity enterprises and high productivity of enterprises coexist, indicating that the market did not give full play to survival of the fittest role, or lack the degree of competition in the market, resulting in resources the key mismatch is to create a fair competitive market order on high alert, “the scale of discrimination” Beijing News: steady investment in stable manufacturing investment is an important part of how to stabilize the financial sector manufacturing investment how to provide more support for investment in manufacturing?? Nie Huihua: in theory, as long as there is demand, profits, investment will increase and therefore, to stabilize investment in manufacturing, the key is to market demand, corporate profits now the question is, under the current institutional mechanisms, it is. We find it difficult to create new demand, and therefore The lack of investment in the power industry to increase basic basic needs are met, the next step to improve the quality of life, we must have high-quality products, the problem is many of our domestic products can not fully meet the demand for high quality. A typical case is now parents with children in town, generally preferred to buy imported milk powder , Why? where domestic milk and imported milk powder in the gap? these questions reflect is not new middle-income class is no demand or demand upgrade, but the current consumer environment, production levels, environmental management system and the rule of law needs to keep up with the upgrade. financial sector increase efforts to support SMEs, the development of more community banks, online banking, small and medium certainly help alleviate corporate finance problems News:? manufacturing in mostly small and medium enterprises, private enterprises, how to optimize the development of such enterprises market environment how to reduce the institutional transaction costs from the perspective of fiscal policy point of view, how to better? for the manufacturing enterprise burden Nie Huihua:? for small and medium private enterprises, excellent Of the business environment is crucial to create a fair competitive market order, “competition neutral” principle. Now, “ownership discrimination” the next plane is running out, but we should be highly alert to a “scale of discrimination” Many policy , bidding, subsidies, tax incentives are based on the development of enterprise scale, rather than for all enterprises equally. marketOwn “scale of discrimination” similar “price discrimination”, which is understandable, but the policy should not be a “scale of discrimination” because it is taxpayers’ money Control Engineering Copyright , must be fair use. We found in the research, large enterprises, whether state-owned or private, can get government benefits, even on everything, but services to SMEs are less timely and effective. Beijing News: in 2015 the State Council proposed “three-step” goal, proposed the Program of Action of the manufacturing sector from the national strategic level, what is the significance for the manufacturing industry? China can successfully achieve this goal? Nie Huihua: One of the advantages of the Chinese system is “concentrating power.” Promote manufacturing development through national strategies in favor of a consensus, the concentration of superior resources to overcome bottlenecks in manufacturing, but also conducive to the formation of a stable and sustainable policy or system in the long run will certainly accelerate the development of China’s manufacturing industry. Of course, how to implement this national strategy, I think we can still explore. For example, the state is directly subsidized products, or subsidize the development cycle? It is to create better infrastructure and external environment, or to support a few large companies? These are important issues worth exploring. If the international environment is relatively stable, the country continued to advance, I think this goal is achievable.


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