This year is the 70th anniversary of the founding of New China, 70 years ago, China’s industrial development has made remarkable achievements in almost a poverty-stricken, based on the full range of established categories of modern industrial system, achieved by a poor and backward agricultural country to the world historic shift manufacturing power. Between 1952 and 2018, China’s gross domestic product grew 175 times the average annual increase of 8.1%, from 12 billion yuan of industrial added value increased to 30.516 trillion yuan, an increase of 970.6 times (in constant prices), with an average annual growth of 11.0% China has for ten consecutive years ranked the world’s largest exporter of goods trade. The basic elements of a rich, complete industrial system, coupled with the huge size of the market system reform path for China’s industrial development increased to a greater resilience to ensure the stable operation of the industry. But in the face of global economic slowdown, trade protectionism, strengthen domestic factor constraints, enhance systemic risk and other complex environment, lack of industry growth momentum, the degree of difficulty to enhance the business, are becoming more obvious, but also makes solving innovation is not strong industrial structure is not optimal, international competitiveness is not strong and other issues become more urgent. The overall lack of market demand, “stable industry” increasing pressure on the overall slowdown in domestic and international market demand, drive the overall 2019 continued the trend since the second half of 2018, total lack of demand. Demand from abroad see Control Engineering Copyright , global demand is insufficient superimposed affect Sino-US trade friction, China is facing pressure so that industrial exports. In October this year, International Monetary Fund (IMF) newly released “National Economic Outlook” once again lowered its 2019 growth forecast to 3% increase in trade barriers, geopolitical tensions intensified further weakening of economic growth, is the 2008 financial the lowest growth rate since the crisis. Three quarters of 2019, the export delivery value of industrial enterprises increased by only 2.4%, down 6.1 and 5.7 percentage points higher than last year and the same period last year, and there is further downward pressure. From domestic demand, consumption and investment demand appears sync fall. From the consumer to see the Control Engineering Copyright , in recent years, overall consumption growth in the “down platform” stage, double-digit growth continued to shift from platform to “nine, eight” platform and other single-digit, year since the gradual shift to “seven” platform, the first three quarters, total retail sales of social consumer goods grew by 8.2%, but April, July, August and September monthsConsumption growth in the “seven” growth range. From an investment perspective, since 2019, a continuous decline in industrial investment growth again in the first three quarters, industrial fixed assets investment rose by 3.2%, down 3.3 and 2.2 percentage points over last year and the same period last year. Rising production costs, increase the degree of difficulty operating “low cost” and “improve the manufacturing system” is an important support China’s accession to WTO, the rapid development of the manufacturing sector. But in recent years, with the rise, increase competition within and outside of the manufacturing sector to strengthen the environmental costs of domestic factor prices, coupled with weakening global demand, lower manufacturing profitability. Since 2013 CONTROL ENGINEERING China Copyright , the overall growth rate of China’s industrial profits down, in 2015, three quarters of 2019 showed profits fell. Especially since 2019, rising costs and weak demand squeezed at both ends, increase the production and management difficulties. Market demand is low, external factors and market factors affecting trade friction corporate profits, but at the same time, the impact of domestic factor costs, environmental costs and other corporate profits more can not be ignored. First, labor costs continue to rise. Manufacturing employment peaked in 2013 after gradually declined, while at the same time, China’s manufacturing wages of workers to maintain a rapid growth, according to statistics, in 2018, above-scale enterprises in manufacturing employment in our country the average annual wage of 64,643 yuan, was 2013 1.5 times. Second, the rising cost of industrial land. In recent years, with the acceleration of urbanization, the scarcity of land issues have become more prominent, but the demand for industrial land is still growing rapidly Control Engineering Copyright , according to the survey, industrial land has become an indicator of industrial development restricted area rigid constraints, the cost of industrial land to increase the compression of corporate profit margins. Third, increase the cost of environmental protection. In recent years, the introduction of laws and regulations continue to strengthen high input, high consumption, high pollution industrial enterprises of environmental inspectors and ecological improvement, “People’s Republic of China Environmental Protection Law” and is also growing environmental constraints of industrial production, industrial enterprises environmental protection costs increased. Capital “mismatch” is still outstanding, the financing difficulties of financing your lingering recent years, with lower financial markets and the real economy prosperity return on investment, domestic financial resources “mismatch” serious funds within the virtual economy “idle”Industrial business financing, financing your problem outstanding. Capital One is the loss of manufacturing more serious. Before the new normal, fast development of China’s manufacturing sector, the growth rate maintained at over 10%, most of the industry, high profit margins, but with low profit era manufacturing, business efficiency gradual decline in the manufacturing sector, 31 manufacturing industries , nine industries on total assets of less than one-year lending rate over the same period, there is the phenomenon of outflow of capital from manufacturing. Second, poor financing environment for private enterprise. Because of China’s capital market is not mature enough, the market system needs to be improved, private enterprises’ financing is relatively narrow. In the direct financing of private enterprises, due to the size, profitability, and many other restrictions, private companies can not issue equity financing, more stringent rating agency for private enterprises to issue bonds rating conditions, poor self-financing conditions for private enterprises. In the indirect financing of private enterprises, banks “do not want the loan, not loans, not credit”, the outstanding project of many companies because of lack of funds had to be abandoned. Third, the high cost of financing for SMEs, financing structure is irrational. After calculation, the cost of financing of SMEs in China has been higher than 10%, while the average social cost of financing was 7.6%, if the SMEs selected financial leasing, factoring, small loans and other financing, its financing costs may reach 20%. At the same time, according to the IFO joint survey shows that Chinese private enterprises 20% of all funds in external debt financing and equity financing less of the total, indicating that a single financing structure of SMEs, over-reliance on bank loans, external financing proportion is too small, Once a company can not obtain bank loans, the company will lose an important source of funds, operating funds will be difficult. Inadequate investment in basic research, development of key technologies is not sufficient short board first, basic scientific research is more prominent. In recent years, China’s total investment in innovation and strength continue to improve in 2018, R & D expenditure of nearly 2 trillion yuan of investment, R & D intensity of 2.19%, the fifth consecutive year of more than 2%, of which investment in basic research accounted for only 5.5 %, while the United States, France, in 2010, it reached 19.0%, 26.3%. Science and technology innovation chain basic link of the lack of restricted technology upgrading in our country fundamentally. Second, the core and key technology innovation needs to be improved. Overall capability of technological innovation has increased in recent years, but in some of the core technology, key technology areas dependent on foreign high CONTROL ENGINEERINGChina Copyright , lack of domestic technological innovation. The higher part of the core components and key technologies dependence on imports, for example, rail transportation equipment industry of bearings and automatic control systems, aircraft design and simulation software and the automotive sector, communications equipment industry high-end chip, the integrated circuit industry lithography machine weak industrial base capability and other fields, at present, China’s industrial robot core components of more than 70% dependent on imports, high-grade core machine tool numerical control system also most rely on imports. Third, lower core components of quality and reliability. Related data show that China’s industrial robot quality and reliability of key components behind the world’s advanced level of 5 to 10 years, used in precision instruments, low noise motors, etc. deep groove ball bearings, foreign product life can reach 8 to 30 times the computing life, reliability of 98% or more, and China is only calculated life bearing products 3 to 5 times the life and reliability of 96%. Old and new momentum synchronization weak, beware of the industrial structure trap founding of New China 70 years ago, China has formed the traditional heavy industry and the consumer goods industry dominated industrial structure, textile, food, chemical, coal, cement, automotive, electronics and other industries accounted for all the proportion of industry for more than 60%. At present, China’s economy has entered a traditional growth momentum decay and flight to quality development “dual meet” stage, in order to supply-side structural reforms as the main line, an important way to be seen as old and new converts kinetic energy to promote economic restructuring and upgrading to promote the real economy. But the old and the new kinetic energy into slow, new small-scale kinetic energy has become an important issue restricting China’s industrial “climbing over threshold” of. Since 2019, China’s industrial emergence of old and new momentum synchronization weak situation, be wary of the risk of falling into the industrial structural traps. In recent years, changes in the structure of demand, large food, chemical, coal, cement, automotive, electronics and other industries accounted for the slowdown in varying degrees. The decline was mainly industry and the market itself into the “low-growth” period related to Sino-US trade friction, uncertainty has accelerated the shrinking market demand for these industries. At the same time, have maintained strong growth momentum of previous years, the emerging industries to varying degrees this year showed a declining growth rate in the first three quarters, the high-tech industry was up 8.7 percent from a year earlier, down 3.1 percentage points. The decline mainly affected emerging field of kinetic energy market adjustments, insufficient technical capability and key policy adjustments affect. The kinetic energy of the old and new synchronization weak, so that China’s industrial structure into the trap of industrial risks increase. Facing international competitionDouble squeeze, enhanced trading environment of uncertainty since the reform and opening up, China full use of “two markets”, “two resources”, continued integration into the global economy, gradually climbing the value chain of the global division of labor, but in recent years, China is facing new economies of developed countries and low-end high-end squeeze out “double squeeze” risk. On the one hand, the rapid rise of emerging economies, with lower labor costs and a regional manufacturing advantages for Chinese manufactured goods exports and attract foreign investment constitutes the substitution effect. On the other hand, in recent years, the German government put forward the “Industry 4.0” “Internet factory” high-tech strategy, Ford, GE, represented by US manufacturing companies significantly increased the scale of investment in the mainland, Chrysler, Hewlett-Packard, Nike and other famous foreign brands have the production line to migrate back to the US. According to the Boston Consulting Group predicts that by 2020 there will be as many as 600,000 manufacturing jobs back to the US from China. In the “compressed end” pressure, China’s cheap labor and resources had to factor inputs as the main feature of the traditional advantage is weakening day by day, an urgent need to foster new competitive advantage for high-end industry. The international trade situation complicated in recent years, will also bring “stability industry” to bring pressure.