From poverty to complete categories, China’s industrial economy has made remarkable achievements in the past 70 years

From a poor industrial family to a modern system with complete categories, from being able to produce only matches and soaps to going abroad for mobile phones, from imitating innovation with technology to leading independent innovation with technology & HELIP; … Recently, the National Bureau of Statistics released the data of China’s industrial economy for 70 years, and the picture of leap-forward development gradually spread out.
The real economy is the leading force driving economic development, and it is necessary to continuously promote industrial modernization and improve the level of manufacturing. Standing in the historical coordinate system of 70 years’ industrial economic development, how can China’s industry achieve extraordinary achievements? What measures should be taken to lay a good foundation? The reporter interviewed industry experts.
Institutional advantages and reform and opening up jointly create a miracle of development.
In 1952, the industrial added value was 12 billion yuan, in 1978 it exceeded 160 billion yuan, in 2012 it broke through the 20 trillion yuan mark and in 2018 it broke through the 30 trillion yuan mark. Draw a 70-year industrial added value line chart, and a curve that accelerates winding upward will jump from the paper.
From 1952 to 2018, the industrial added value increased by 970.6 times at constant prices, with an average annual growth rate of 11%. "This speed not only exceeds that of most developing countries in the world in the same period, but also exceeds the similar period of many advanced industrialized countries." Fu Baozong, director of the Industrial Office of China Institute of Macroeconomics, said.
— — The industrial scale is growing. "In the early days of the founding of New China, with the institutional advantage of concentrating on major events, resources were focused on the heavy industry sector, and the output of major industrial products such as crude oil and power generation increased rapidly." Li Jiangtao, director of the Department of Industrial Economics of the Department of Economics of the Central Party School, believes that this has laid a solid material and technical foundation for modernization.
— — The industrial growth rate has jumped year by year. According to Zhang Shixian, a researcher at the Institute of Industrial Economics of the Chinese Academy of Social Sciences, reform and opening up have greatly liberated industrial productivity and activated China’s industrial vitality by introducing advanced technology. At constant prices, the industrial added value in 2018 was 56.4 times higher than that in 1978, with an average annual growth rate of 10.7%.
According to World Bank data, the added value of China’s manufacturing industry has been ranked first in the world for many years since 2010. Under the current situation at home and abroad, can the development of China’s manufacturing industry continue the development trend of steady progress?
In this regard, the interviewed experts said that five factors, such as huge industrial scale, complete industrial system, complete supply chain network, huge industrial workers and pioneering industrialists, have determined that the manufacturing potential is still huge. With the deep development of new industrialization, the continuous release of domestic demand potential and the continuous improvement of market economic system, China’s industry will enter a new era of higher quality integration into the global economic system.
Behind the rise of product quality and quantity is the optimization and upgrading of industrial structure.
Relying on the rapid growth of industrial production capacity, China’s manufacturing industrial products continue to go abroad. From 1978 to 2018, the total export volume of goods increased by 979 times. A more noteworthy set of data is the change of export product structure: in the early days of the founding of New China, more than 80% of export commodities were primary products; by 1978, the export proportion of primary products had dropped to 53.5%, and that of manufactured goods accounted for 46.5%; after 2000, the export proportion of manufactured goods had risen to over 90%.
"China’s industrial products have achieved a spiral improvement in quantity and quality. The increase in quantity mainly comes from the expansion of capital-driven production capacity, and the improvement in quality mainly benefits from the introduction of advanced technologies and management models. " From the perspective of the development path of textile, household appliances, automobiles and other industries, Miao Rong, the chief researcher of china enterprise confederation, believes that the combination of early international industrial capital, advanced technology and management experience with China’s rich resource endowments such as labor and land has enhanced the international market share of China’s industrial products. The development and growth of local enterprises, digestion, absorption and innovation have become the new driving force for the rise of product quality and quantity.
Behind the continuous optimization of product structure is the continuous upgrading of industrial structure. By promoting supply-side structural reform and removing excess capacity, the pace of transformation and upgrading of traditional industries has been accelerating; At the same time, emerging industries represented by the new generation of information technology have become the focus of industrial structure optimization and upgrading, and the growth rate of added value of industrial strategic emerging industries continues to be higher than that of regulated industries.
Miao Rong said that China’s traditional industries have crossed the general technical bottleneck and gradually got rid of the status of followers. A large number of internationally competitive enterprises have emerged in the fields of steel, textiles, home appliances and engineering equipment. "Emerging industries have also entered the fast lane of development. Many traditional enterprises regard cultivating and developing strategic emerging industries as a means of transformation and upgrading, which has amplified the development potential of emerging industries."
How to further expand the upgrade space of Made in China? Fu Baozong believes that industrial products are still in the stage of scale development, and the supply of high-end, high-quality, safe and green products is relatively insufficient. "In the future, we need to improve the industrial access standard system, improve the inclusive and orderly innovation incentive mechanism, accelerate the integration of new technologies such as artificial intelligence and industrial Internet with the manufacturing industry, and strive to promote the high-quality development of the manufacturing industry."
Prospective basic research and leading original research still need to be broken through.
Over the past 70 years, China’s industrial products have extended from low added value to high added value, and in the final analysis, they rely on innovation and scientific and technological progress. Under the guidance of innovation-driven strategy, industrial innovation capability has been significantly enhanced. In 2017, among the regulated industrial enterprises as the main body of innovation, there were 102,000 enterprises with R&D activities, a five-fold increase over 2004; In 2017, the expenditure on industrial research and development was regulated, which was 9.9 times higher than that in 2004.
— — Industrial technology ability from running to leading, thanks to the correct guidance of policies. Decentralize the right to dispose of scientific and technological achievements, strengthen the protection of intellectual property rights, and greatly improve the benefits of scientific research personnel’s achievements transformation … … A dose of good medicine for policy has revived the vitality of scientific and technological innovation.
— — Industrial technology ability from running to leading, relying on huge market space. Zhang Shixian believes that internally, the huge China market makes it possible for any innovation attempt to generate a huge return on investment, which enhances the motivation and risk resistance of enterprise innovation; Externally, in the market competition with international enterprises, exchanging space for time has also won more trial and error opportunities for China enterprises.
Towards high-quality development, the focus of industrial structure adjustment is to improve the allocation efficiency of production factors and increase the proportion of technology-intensive industries. This requires enterprises to rely on independent innovation to master the core technologies with independent intellectual property rights.
At present, China is still in the stage of mixed promotion of imitation innovation and independent innovation, and the proportion of basic leading independent innovation is still relatively low. The interviewed experts said that the important task in the future is to push forward the major breakthroughs in forward-looking basic research and leading original research and the wide promotion of applied research on the basis of extensively improving the scientific and technological components and R&D activities of industrial enterprises, which is the key to building a manufacturing power.