Developing advanced manufacturing to improve manufacturing quality is the top priority in the economic transition period

A major revolution that supports the manufacturing industry to innovate, transform and upgrade is being carried out in an orderly manner nationwide.

At the national level, the report of the 19th National Congress puts forward "accelerating the construction of a manufacturing power and accelerating the development of advanced manufacturing industries"; the government work report proposes "a quality revolution made in China." Recently, the state will set up a strategic emerging industry development fund, which is expected to reach a trillion scale. The VAT reform is expected to cut taxes by 200 billion yuan for manufacturing industries. IC companies will also usher in a round of tax cuts. The Ministry of Industry and Information Technology has started to develop advanced manufacturing industries. route map.

In the 40 years of reform and opening up, China's economy has made great progress and development. Among them, manufacturing has contributed greatly. Especially after joining the World Trade Organization, globalization has brought a development opportunity for China's manufacturing industry in a hundred years. Gradually changing from the middle to the upper reaches of the global industrial chain to the middle and lower reaches, many industries have formed a complete industrial chain in China.

However, it is undeniable that the current independent innovation and brand influence of China's manufacturing enterprises are still not strong enough, and it is not enough to meet the requirements of consumption upgrading and high-quality economic and social development required for the improvement of residents' living standards. Wind data shows that China's manufacturing industry has a global market share of more than 50%, there are 5, more than 20% have 22, these industries have certain technical thresholds, but the relative threshold is still not high enough, some technology-intensive industries such as semiconductors The market share of aerospace and other industries is still not high.

From the perspective of residents' lives, most of the baby milk powder and diapers are still the world of foreign brands. The same is true for the luxury goods in clothing, shoes, hats and bags. From the industrial point of view, China imported 260.14 billion US dollars of integrated circuits from abroad in 2017, which is the same period in China. 1.6 times the crude oil import volume, in the rapid development of the new economy such as the Internet, mobile payment, and Internet of Things, “the lack of core and less screen” directly restricts the development quality of related industries and economy. Western medicine in the pharmaceutical industry is still dominated by generic drugs. The proportion of original research drugs in China is still small. In particular, some high-margin anticancer drugs can only be imported from abroad. In other industries, such examples are too numerous to list.

Not only that, but the current traditional manufacturing industry is being sandwiched between “sandwiches” with increased internal costs and reduced external demand. Internally, China has passed the turning point of the demographic dividend. According to statistics from the Bureau of Statistics, China’s birth rate has been declining in recent years after reaching a high of 22.37% in 1988. Although the comprehensive two-child policy has rebounded slightly after the introduction, In 2017, it fell again. The corresponding proportion of the working population (15-64 years old) in the total population reached a peak of 74.5% in 2010, and fell rapidly to 71.82% in 2017, while the proportion of the elderly population over 65 years old is increasing year by year. The decline in the demographic dividend directly led to difficulties in manufacturing and labor costs. At the same time, the continuous improvement of the property market in the past decade has directly raised China's land prices. The increase in land prices has also led to an increase in the cost of land rents. As environmental protection has become stricter, the price of upstream resource products has also increased significantly in 2017. In addition, the lack of direct financing has led to the long-term higher financing costs of manufacturing enterprises than the market natural interest rate. Affected by corporate brands, lack of independent innovation capability and low industrial concentration, the rising cost of various types of enterprises has been transmitted to the terminal, and the profitability of manufacturing enterprises has been low in recent years.

From the outside, with the development of China's economy, the industrial chain and industrial clusters of the manufacturing industry have taken initial shape, although the cost has increased, but in many fields such as electromechanical, toys, textiles, Southeast Asia and other countries are still unable to replace, with Europe and the United States. After the recovery of the economy in 2008, China’s net export to the outside world and the trade surplus with the United States and Europe have also increased. This is what the United States does not want to see, and because of the current technological advantages of manufacturing, the economic development has come. The less obvious, if the transformation and upgrading of the manufacturing industry is not completed as early as possible, and the advanced manufacturing industry is vigorously developed, the trade deficit of some high-tech industries will continue to expand, and the potential trade friction in China will exist for a long time in the future.

China has successfully achieved overtaking in corners in the fields of high-speed rail, nuclear power, aviation, etc., and is at the forefront of world development in new economic fields such as mobile payment, sharing economy, big data, artificial intelligence, etc., and has formed a number of unique angles led by BATJ. How to break through and improve the quality of China's manufacturing industry and better integrate the manufacturing industry with the new economy has become a problem that must be solved in the high-quality development stage. After all, the transformation and upgrading of the manufacturing industry is successful or not. The key to success and the top priority.

In fact, economies such as South Korea, Singapore, and Taiwan, which relied on foreign trade for economic take-off, have encountered the same problems and achieved a smooth transition during the period of demographic dividend decline. The reason is, in short, to actively slow down the economic growth, gradually relax the regulation of financial services, increase direct financing, increase investment in education and basic scientific research, effectively suppress the virtual economic bubble and narrow the gap between the rich and the poor. This also provides valuable experience for the transformation of China's manufacturing industry.

For the transformation and upgrading of China's manufacturing industry, it is necessary to carry out reforms in all aspects from all aspects. As far as the top-level design is concerned, it is necessary to establish an incentive mechanism for innovation in the whole society, and not to engage in any form of property market stimulus policy, to insist that the property market regulation is not relaxed, and to introduce a property tax system for multi-suite families in due course. It is an effective positive incentive system for those who work hard to make a profit. In terms of macroeconomic policy, in the context of the global tax reduction and attracting industries, China needs to continue to reduce the burden on the manufacturing industry and increase the tax credits and reductions of scientific research investment. The intensity of taxation, the power of the state to invest in basic research areas to reduce the company's repeated research and development investment. At the same time, it is necessary to gradually relax the regulation of financial, education, medical and other service industries, stimulate market vitality, increase the development of direct financing market, and form a mechanism of risk sharing, benefit sharing, interest rate marketization and multi-level service; It is necessary to gradually raise the standard level of the manufacturing industry and the penalties for illegal and untrustworthy enterprises, and form a benign mechanism for survival of the fittest; in terms of enterprise development, increase the protection of property rights and personal property rights, give full play to entrepreneurship, and promote enterprises. Brand building and building a century-old manufacturing industry is the ultimate goal.

Only a comprehensive system setting can promote the deep integration of traditional manufacturing industry and new economy. Only the deep integration of traditional manufacturing industry and new economy can promote the transformation and upgrading of manufacturing industry. Only the successful completion of transformation and upgrading of manufacturing industry can promote the smooth transformation of China's economy. Only China A stable economic transformation can promote high-quality economic development in the new era.

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