The urgent task is to intensify cost reduction efforts, truly reduce the burden on enterprises, and make China’s manufacturing industry lighter. Now that countries all over the world are “reducing their burdens”, if Chinese manufacturing companies are still carrying unnecessary “baggage”, they will fall behind again.

“Capital is chasing the capital market, squeezing the development space of the manufacturing industry. To revitalize the real economy, the focus is on the manufacturing industry, and the difficulty is also in the manufacturing industry. To implement the strategy of manufacturing a strong country, cultural confidence is the spirit, the spirit of craftsmanship is the soul, and independent innovation is the driving force , Intelligent transformation is the path, and national brand is the symbol,” said Li Xinghao, Chairman and President of Chigo Group.

Reduce business costs

“In recent years, the cost of labor, raw materials, land and other factors in our country has risen rapidly, which has greatly increased the costs of manufacturing companies.” Luo Wen, director of the Planning Department of the Ministry of Industry and Information Technology, said, taking labor costs as an example, according to the British Economic Scholars Think Tank predicts that the ratio of hourly labor costs in the manufacturing industries of China and India will rise from 138% in 2012 to 218% in 2019.

Li Xinghao believes that the current domestic manufacturing industry as a whole is facing downward pressure, including the withdrawal of capital, labor and other factors from the manufacturing field, resource and environmental constraints, a sluggish export market, and a serious lack of scientific and technological innovation capabilities. “Many manufacturing companies have encountered bottlenecks in their development, profit margins have continued to decline, and some industries have even faced industry-wide losses. More and more entrepreneurs have left the manufacturing industry,” Li Xinghao said.

According to estimates, the current average profit rate in the industrial industry is around 6%, but the profit rate in the banking industry is close to 40%, which is nearly 7 times that of the industrial industry. Liu Zhibiao, dean of Jiangsu Yangtze Industrial Economic Research Institute and Changjiang Scholar Distinguished Professor, pointed out that the profitability of the real economy is not strong and the profits of the virtual economy are too high, forming a strong adsorption of resources and raising the costs of the real economy.

Gao Shangquan, a well-known economist and former deputy director of the National Economic Structural Reform Commission, said that in the era of globalization, Chinese manufacturing must correctly face the “shock wave” of international tax cuts, make taxes more standardized and transparent through reform and innovation, and increase tax cuts and fee reductions. efforts to create a better environment for the development of manufacturing enterprises.

Shi Jun said that reducing corporate costs requires a combination of reform and innovation, which can be summarized as “one stop, seven reductions, and three innovations.” “One stop” refers to stopping other projects that increase the cost of the enterprise. “Seven reductions” refers to reducing institutional transaction costs, tax costs, financing costs, energy costs, logistics costs, labor costs, and land costs. “Three innovations” refer to innovative enterprise operating mechanisms, innovative government management mechanisms, and innovative intermediary cultivation and management mechanisms.

Farewell to “use-ism”

“Every major breakthrough in science and technology often brings a series of new technologies, new materials, new processes, and new equipment. Using these advanced technologies to transform traditional industries will help improve the production efficiency and product quality of traditional industries, and reduce costs. Promote the development of traditional industries towards high-end development,” Luo Wen said.

Li Xinghao believes that in the past, most companies pursued “appropriationism”, but now they must bid farewell to imitation, improve independent innovation capabilities, and promote product innovation, technological innovation and business model innovation with intelligent manufacturing as the core, making innovation a key factor in promoting the construction of a manufacturing power. The core strength will eventually realize the transformation of the manufacturing industry from large to strong and become a symbol of high-quality products in the world.

Feng Kaidong, associate professor at Peking University School of Government, said that if China’s manufacturing industry wants to change the situation of being large but not strong, it must rely on independent innovation. Currently, Made in China is transforming into “Intelligent Made in China”, which is both an opportunity and a challenge. Germany’s “Industry 4.0” and the United States’ “Industrial Internet” are both trying to upgrade the industrial economic platform to regain control of the manufacturing industry, which will lead to the re-division of the global map and profits of intelligent manufacturing. China must complete the transformation within a limited time, because a new round of late-developing countries has emerged with a “low-cost manufacturing” model and is gradually eroding the original territory of Chinese manufacturing.

“Looking around the world, whether it is the US’s ‘Industrial Internet’, Germany’s ‘Industry 4.0’ or ‘Made in China 2025’, the core is intelligent manufacturing. The era with intelligent manufacturing as the core has arrived, and promoting intelligent manufacturing is the global The only path for industrial development is also the main direction of China’s manufacturing transformation and upgrading,” said Li Xinghao.

Liu Zhibiao pointed out that based on the average annual growth rate of the “China Innovation Index Research Report”, by 2018, R&D investment will account for 2.61% of GDP, which is close to the level of developed countries. This shows that my country’s real economy We are developing in an innovation-driven direction. However, our country is currently in the stage of technological learning and imitation, and is at the critical point of breaking through to independent innovation. Chinese companies�In the process of transforming and upgrading to the high end of the value chain, we encounter restrictions such as technological blockades and financial difficulties, which require more support from the government.

Creating national advantages

“China’s manufacturing industry must build our brand.” Bai Ming, deputy director of the International Market Research Institute of the Ministry of Commerce’s Institute of International Trade and Economic Cooperation, pointed out that China is already the world’s largest trading country and must transform its economic development model and create a new model of international trade competition. Advantages. This new advantage includes at least four aspects: technology, service, quality and brand. To build a trade power, we must first transform from the world’s factory into a manufacturing power and find our own unique advantages.

Sha Nansheng, deputy director of the Science and Technology Department of the Ministry of Industry and Information Technology, said that brand building is an inevitable requirement for a strong manufacturing country. In the era of economic globalization, brands have become an important symbol of the core competitiveness of the manufacturing industry and even the national economy. Building well-known brands has become the commanding heights of economic competition among countries and an important force leading the global industrial chain. However, there are still too few world-class brands made in China. Accelerating quality improvement and cultivating brands are the general trend of building a strong manufacturing country.

Li Xinghao called on the government to optimize the investment and development environment, boost the confidence of Chinese manufacturing companies, introduce more powerful financial policies to support the development of the real economy, and increase support for manufacturing companies. Only then can China’s manufacturing industry successfully transform from “Chinese products” to “Chinese brands” ” to the great transformation of “world brand”.

“The government should increase support for manufacturing companies in terms of trade promotion, R&D investment, and building national brands.” Li Xinghao said that while expanding domestic demand, it is recommended that the government introduce favorable policies to promote export trade and create a “Made in China” “Smooth road to the international market; increase R&D investment in enterprises and the supply of scientific and technological talents, encourage enterprises to engage in technological innovation, and create convenient conditions for the transformation of enterprise R&D results; for enterprises with normal operations, loan funds cannot be reduced and must be allowed to More social capital invests in the manufacturing industry, allowing more entrepreneurs to focus on developing the manufacturing industry.

“Internationally, the governments of developed countries play an important role in protecting emerging industries, supporting technology research and development, and cultivating market demand. Even when some large companies encounter difficulties that are difficult to overcome, the government will directly invest in shares. “Support enterprises.” Luo Wen said that this is still the case in developed countries. As a catching-up economy, our country should give full play to the role of the government, rationally formulate industrial policies, provide high-quality public services, cultivate a fair competitive market, and increase supervision when necessary. investment in some important areas.

Source: China High-tech Industry Herald