Strategic emerging industries become the focus of the 12th Five-Year Plan

The Fifth Plenary Session of the Seventeenth Central Committee will be held in Beijing from October 15th to 18th. The meeting will review the "Proposal of the Central Committee of the Communist Party of China on Formulating the Twelfth Five-Year Plan for National Economic and Social Development." Relevant experts revealed that vigorously cultivating and developing strategic emerging industries will be clearly identified as one of the key points in the preparation of the 12th Five-Year Plan. The development direction, strategic priorities and major initiatives of relevant industries will also be determined. Among them, high-end manufacturing may become a top priority.

Liu Baicheng, a 77-year-old academician of the Chinese Academy of Engineering and a famous equipment manufacturing expert, predicts that "strategic emerging industries will surely make breakthroughs during the "Twelfth Five-Year Plan" period." Lu Zhongyuan of the Development Research Center of the State Council also believes that "the strategic emerging industries at the end of the "Twelfth Five-Year Plan" will begin to take shape."

"Made in China" upgrade is an urgent task
In the "Blue Book of China's Urban Competitiveness 2010" released by the Chinese Academy of Social Sciences in late April, it proposed the strategic goal of China's national competitiveness: by 2050, it will become the world's second-largest country after the United States. By 2020, China will become an advanced country with comprehensive strength, key first-class, and overall middle and upper.

But there is no doubt that China still has a considerable gap from this goal. Mo Zhen, director of the Planning Department of the Ministry of Industry and Information Technology, proposed that "the high-end manufacturing industry is an important indicator of a country's comprehensive competitiveness." But at present, China's manufacturing industry is still at the low end.

Due to the lack of core technology, OEM production is still a common survival mode of “Made in China”. Among them, the automobile industry is the most prominent. Liu Baicheng bluntly said: “The Passat and Mazda running across the street are ostensibly produced in China. In fact, the core technologies and drawings are from abroad.”

In addition, most of China's manufacturing companies still focus on low-end manufacturing areas such as general consumer consumption and raw materials. On behalf of a country's manufacturing development level, the various sectors of the national economy, and the high-end equipment products urgently needed by various industries, they are still heavily dependent on imports.

“The production of some raw materials in the industry is relatively weak. For example, some key screws should be imported, let alone some high-end instrumentation.” Liu Baicheng said. At present, China's total installed value of fixed assets investment in the whole society accounts for less than half of the total value of domestic equipment.

In the early years, due to the low labor costs in China, even in the low end of the industrial chain, "Made in China" still has room for survival. However, in recent years, the advantage of low labor costs is gradually disappearing, and the "Made in China" upgrade has become an urgent task.

To this end, this year's government work report clearly defines the high-end manufacturing industry as one of the six strategic emerging industries. The high-end manufacturing industry is at the high-end link of the manufacturing value chain. It has the characteristics of technology, knowledge-intensive, high added value, good growth, keyness and great driving.

In fact, the other five strategic emerging industries – new energy, new materials, energy conservation and environmental protection, biomedicine, and information networks – are all inextricably linked to high-end manufacturing. For example, wind turbine equipment, nuclear power equipment, metallurgical equipment, environmental protection equipment, and electronic equipment are all areas of high-end manufacturing.

At the same time, information network technology will also drive the upgrading of manufacturing. "Any traditional manufacturing industry, once revolutionary information technology, is likely to develop into a high-end manufacturing industry." Liu Baicheng said.

Luo Jun, CEO of the Asian Manufacturing Association, also pointed out that in the next five years, a new generation of information technology represented by the Internet of Things will promote the rise of high-end manufacturing and will promote the establishment of a huge industrial chain.
Government investment scale or more than 4 trillion
The goal of developing high-end manufacturing has been clear, and how to develop is an important issue.

The first step is to clarify the focus of development. In the opinion of the Ministry of Industry and Information Technology, this focus should be on the equipment manufacturing industry.

The large-scale equipment manufacturing industry is a high-end field of manufacturing. The high-tech and advanced management mode in manufacturing is basically reflected in the equipment manufacturing industry. The largest part of the manufacturing profit space is also the equipment manufacturing industry. The equipment manufacturing industry represents the direction of the entire manufacturing industry and determines the level of the entire manufacturing industry. These include large-scale equipment manufacturers such as heavy machinery, ships, aircraft, power generation equipment, large boilers, metallurgical machinery, mining machinery, and special equipment.

Second is the path of clear development. Liu Baicheng believes that improving the ability of independent innovation is the key to development. “At present, Chinese companies are seriously under-invested in research and development. About 25% of large and medium-sized enterprises have R&D institutions. In enterprises with R&D institutions, only about 1%-2% of sales revenue is used for technology. Investing in Europe and the United States is generally about 5%. If you are behind the others, you can't increase your investment. How can you catch up?"

In order to drive the innovation enthusiasm of the enterprise, the government investment will be overweight during the “Twelfth Five-Year Plan” period. At present, in the field of science and technology, the national R&D investment accounts for about 1.5% of GDP; in the next five years, this proportion will be expanded to 2%-2.5%.

"The base of GDP is very large, so the growth of scientific research investment is huge." Liu Baicheng believes. The data shows that China's GDP in 2009 was 335.53 billion yuan. If the annual economic growth rate is maintained at 8% in the future, the scientific research investment during the 12th Five-Year Plan period will reach 4.5892 trillion yuan, exceeding the investment scale of 4 trillion yuan in 2008. . These are just scientific research inputs, and they have not included factors such as project investment and tax reduction.

While increasing financial research investment, the state will also establish innovative alliances and a number of innovation platforms in the field of high-end equipment manufacturing, so that the scientific research strengths of enterprises, universities and institutes will be united and key breakthroughs will be made in the core areas.

Liu Jiabin, senior consultant of Inspur Soft, said: "To truly meet the information needs of high-end manufacturing, we cannot rely on several software companies. It is inseparable from the joint efforts of manufacturing companies, relevant research institutions and government departments. The special needs of high-end manufacturing companies have attracted the attention of relevant departments."

In the key work deployment of deepening the economic system reform in 2010, it was clearly stated that it is necessary to explore and improve the "technical innovation nationwide system" to comprehensively promote the construction of the national innovation system.

"From the perspective of historical experience, the national system has its unique advantages - an example worthy of reference is "two bombs and one star."" Wei Wei, a researcher at the Expo Financial Research Institute, said.
High-end manufacturing industry clusters will rise
Liu Baicheng believes that the independent innovation capability of high-end manufacturing industry will certainly break through during the “Twelfth Five-Year Plan” period and form several high-end manufacturing industry groups with unique advantages.

At present, a number of industrial powers have emerged in the world, which can be roughly divided into three types: First, first-class industrial powers with comprehensive strengths in enterprise technology, market, and industry, such as the United States, Japan, and Germany. Second, the overall strength is strong, while the local strong industrial powers such as the United Kingdom, France, Italy and so on. Third, industrial powers with strong local strengths, such as Switzerland, South Korea, Sweden, and Russia.

Mo Zhen believes that these different types of industrial powers have a group of high-end manufacturing industries with strong independent innovation capabilities and strong resource integration capabilities. Its main features are as follows: First, the company's international competitiveness is strong. Second, the ability to technological innovation is first-rate. Third, the industrial cluster is internationally leading. Fourth, the industrial system is green and environmentally friendly. Fifth, the soft powers such as culture, education, and productive services are outstanding.

In August this year, Minister of Industry and Information Technology Li Yizhong made it clear that the Ministry of Industry and Information Technology will formulate the ideas and key projects for the development of the equipment industry in the “Twelfth Five-Year Plan”, optimize the spatial layout of the industry, and promote the coordinated development of the region and industry.

Liu Baicheng said that any region may rely on independent innovation to develop high-end manufacturing industries. From the existing foundation, the four regions have begun to take shape.

The first is the advantageous industries such as shipbuilding in the Yangtze River Delta region. The "Regional Planning of the Yangtze River Delta Region" clearly states that the advantages of large-scale machinery, complete sets of equipment, and research and development of automobiles and ships will be brought into play to consolidate and upgrade the level of equipment manufacturing. Focusing on Shanghai, Nantong and Zhoushan, we will build large-scale shipbuilding and marine engineering equipment bases. In conjunction with the structural adjustment of the shipbuilding industry in Shanghai and the relocation of the internal shipyard of the Huangpu River, the construction of the Changxing Island Shipbuilding Base will be focused on.

Followed by the old industrial base in Northeast China centered on Shenyang. Shenyang is known as the backbone of China's equipment manufacturing industry, and has key backbone enterprises and supporting enterprises such as Shenyang Machine Tool and Dalian Machine Tool. Among them, the medium and high-grade CNC machine tools of Shenyang Machine Tool have entered the core manufacturing field of national key industries in batches.

In addition, large aircraft manufacturing in the Jingjintang area and the automobile manufacturing industry in the Pearl River Delta are likely to consolidate existing advantages during the “Twelfth Five-Year Plan” period and form an industrial cluster that has begun to take shape.

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