Manufacturing industry upgrades need to simmer slowly

"Although the subjective direction and aspirations of China's manufacturing industry upgrading are correct, it should not be too much to intervene with administrative measures. Otherwise, it may affect the cornerstone of China's industrial development in the past decades and lead to the consequences of being involved in the whole system."

The chairman of the board of directors of Hong Kong Nanhua Group Co., Ltd., Zhang Saicang, has been reelected as a member of the three-time CPPCC. At the “two sessions” this year, she submitted a number of proposals. She discussed with reporters whether the Chinese manufacturing industry is in urgent need of industrial upgrading. Worthy of attention.

She analyzed that the economic downturn in Europe and the United States has slowed China’s and Southeast Asian countries’ export growth. In 2012, China’s total value of exports was US$20,493 trillion, an increase of 68% over 2007, but only a 8% increase over 2011. The situation in other Southeast Asian countries is also similar: Thailand’s total export value has increased by 50% in the past five years, but it has only increased by 3% in the past year; Indonesia’s total export value has increased by 67% in the past five years, but it has fallen in the past year. 7%. Vietnam’s export industry has grown rapidly in recent years. In the past five years, the total value of exports has grown by a total of 137%, and the growth rate in the past year has also been 19%. Facing the Southeast Asian countries, especially the competition in Vietnam, coupled with the United States' strategy of returning to Asia and containment of China, and the fact that China’s wages have risen sharply, China’s manufacturing industry needs a transition.

However, how should China's industrial upgrading be carried out? It is worth thinking deeply. Considering the fact that China has a large population, broad strata, significant gaps in knowledge levels, and regional differences, China should balance the development of high, medium, and low industries, and make good use of different regions without polluting the environment and wasting resources and energy. Different levels of workforce. In addition, in the development of high-tech industries, we must also develop labor-intensive industries because these industries can provide a large number of jobs, and they do not need to be eliminated. However, labor-intensive industries do need to move toward the deployment of more automated equipment, enhanced process innovation, improved production processes, and increased production efficiency. As a result, even though the production costs of Southeast Asian countries are lower than those in China, China’s labor-intensive industries are still due to the fact that China’s technological level is better, product quality is better, and logistics is integrated, and the supply chain has been established and mature. Can enjoy advantages. At the same time, the country continues to train middle- and high-end talents, with the emphasis on making all levels of industry progress together, so as not to cause a vacuum in the industries of a certain class.

She further stated that since China's accession to the World Trade Organization in 2001, the growth of the manufacturing and export industries has accelerated, driving the economic growth of the past decade. Today, with the improvement of the living standards of the Chinese people, wages, the strong exchange rate of RMB, and the weakening of the economies of Europe and the United States, the model of economic growth driven by quantity in the past decade has almost come to an end. The future economic growth model should indeed be driven by quality. This change can be achieved through various economic, financial and taxation reforms, and even anti-corruption, in order to enhance the country’s economic efficiency. As for industrial upgrading, according to the development history of other countries, the process is generally relatively long and cannot be achieved overnight. For example, the development of the Silicon Valley in California in the United States lasted for many years. It also includes continuous cultivation of high-tech talent and entrepreneurship from neighboring Stanford University for many years. The combination of scientific research institutions, investment funds, and the healthy development of the stock market, as well as the legal system, the protection of intellectual property rights and infrastructure and other factors. It can be seen that industrial upgrading is a long process and it cannot be overemphasized. Now that China is facing the United States' strategy of returning to Asia and containing China, it is even more necessary to review the situation in the process of upgrading the manufacturing industry. This should be done without prejudice to economic and social stability.