Recently, the State Council issued the Made in China 2025 to arrange for implementation of strategy of building a strong manufacturing country. Why does China release such strategy of Made in China 2025 at that moment? What main content does the strategy contain? What influences will it exert on manufacturing? The reporter interviewed Miao Wei, minister of Industry and Information Technology, on those questions.
Only few enterprises with international competitiveness and a new round of development aiming at transformation of manufacturing from large size to strong capability
Why does China release the Made in China 2025 at that moment?
Miao Wei noted in addressing the international financial crisis, all countries realized they shouldn’t give up support to real economy and many foreign countries proposed plans, including “reindustrialization” and “industry 4.0.” Taking into account China’s actual situations, its economic development has entered a “new normal” stage and the manufacturing ushered in a transitional phase from the low end to high or medium end of value chain.
“Based on those situations, we should study what strategy we should adopt to respond to the new round of development and how to realize the transformation of manufacturing from large size to strong capability. It is our general consideration for the preparation of Made in China 2025,” said Miao.
To find the way of the transformation from large size to strong capability, we need to figure out Chinese manufacturing’s advantages and disadvantages.
In respect of advantages, Miao Wei said, “We have a large market and the market’s demands are rapidly increasing; we have numerous vigorous enterprises; we have the long-term guidelines and strategy for the manufacturing; we have a great number of talents, especially high-quality talents team with college graduates as representatives, to engage in the manufacturing.”
Miao indicated China’s manufacturing has its weakness, e.g., lack of continuous investments in innovation and of conception of innovation-driven development; needs for continuously upgrading product quality; stronger constraint from resources and environment; insufficient optimization of industrial structure; few enterprises with international competitiveness among numerous manufacturers; lack of leading transnational companies despite of having numerous talents.
Implementation of five important projects to boost development of ten significant areas such as the new generation of information technology
In what aspects, will the Made in China 2025 boost the transformation of China’s manufacturing from large size to strong capability? Miao concluded the main content of the Made in China 2025 in following ways.
There is one goal in the strategy, i.e., becoming a strong manufacturing country.
To realize the goal, we need to deeply integrate informatization with industrialization.
It is necessary to take three steps to realize the goal and each step lasts about ten years. In the first step, by 2025, China will make it in the rank of strong manufacturing countries; in the second step, by 2035, China’s manufacturing will reach the intermediate level of the strong manufacturing countries in the world; in the third step, by the 100th anniversary of the founding of New China, China’s status as a strong manufacturing country will be further reinforced and its comprehensive strength will top the world strong manufacturing countries.
We should stick to the four basic principles of “guidance by the market, instruction by the government; standing from the present, aiming at the long future; advancing as a whole, making breakthroughs in important areas; independent development, all-win cooperation.”
It is also required to follow five guidelines, i.e., driving with innovation, giving priority to quality, green development, structural optimization and putting talents first, focusing on five disadvantages of China’s manufacturing.
We also need implement five important projects, i.e., establishment of national manufacturing innovation center, industrial foundation reinforcing project for strengthening foundation of manufacturing, intelligent manufacturing, green manufacturing and innovation of high-end equipment.
Finally, great efforts should be made in ten significant areas, including new generation of IT industry, sophisticated digital control machine tools and robots, aeronautical and astronautic equipment, ocean engineering equipment and hi-tech ships, advanced rail transmit equipment, energy-efficient and new energy autos, electrical equipment, agricultural machinery and equipment, new materials, biomedicine and high-performance medical devices.
Large groups in significant areas allowed to establish non-depository financial institutions
What kinds of policies are expected to be issued immediately? Miao Wei said, the Made in China 2025 provides some solutions for the current emergent problems. For example, the financial area has made clear that it will steadily and continuously support development of manufacturing, concentrating financial funds on high-end equipment, industrial basic capability and technical renovation; in terms of finance, large manufacturing groups in significant areas will be allowed to establish the non-depository financial institutions, and commercial banks be encouraged to provide distinctive credit products and financial service and establish funds for development of small and medium-sized enterprises; with regard to talents, some universities will be urged to turn into the technical application colleges. “All of those are innovative areas.”
“We will further promulgate about ten action agendas or dedicated plans centering on Made in China 2025, now, we have identified difficulties and important issues and in the next step, we will coordinate all administrative bodies to boost the work,” said Miao Wei.
Currently, we have initiated the preparation of implementation plan for five important projects. “We mainly focus on the work that can’t be done or can’t be well done under the current market environment.” The construction of manufacturing innovation center will adopt new models and mechanisms such as industrial alliance to strengthen research and development of key generic technologies. It is planned to establish one or two pilots this year.
“Currently, basic materials, basic components and parts, basic techniques and basic technologies are the weakest area of China’s manufacturing. The industrial foundation reinforcing project will be fulfilled by means of the construction of manufacturing innovation center on one hand and be funded by the national finance with the fund of 700 million yuan to establish the platform,” said Miao Wei.
Intelligent manufacturing will solve two problems: first, intelligent equipment and industrialization of products to prevent new dependence on foreign countries; second, intelligent manufacturing, e.g., digital workshops and intelligent plants, to study the uniform standards and establishment of systems. Green manufacturing projects will be fulfilled by means of promotion of advanced applicable technical pilots. In terms of innovation of high-end equipment, the Ministry of Industry and Information Technology will cooperate with the Chinese Academy of Engineering to launch a green book on innovation and development of ten significant areas every two years to introduce the advanced technologies and realization approaches.
“In terms of those five important projects, we will issue some specific projects as soon as possible and also accelerate the review and approval of standby projects,” added Miao Wei.