To implement“China Manufacturing 2025”, the first ten-year action guideline for building China into a strong manufacturing nation, is an important strategic move madeby the CPC Central Committee and the State Council for the future developmentof our manufacturing sector Since its promulgation, under the coordination ofthe State Leading Group for Building China into a Strong Manufacturing Nation,relevant agencies have improved top-level designing and working mechanisms,strengthened synergy coordination and interaction among different bodies and atdifferent levels, and gave play to the role of enterprises as principal partand the role of key projects as enabler. Progress was made in various aspectsof our work which played an important role in stabilizing industrial growth andspeeding up manufacturing transformation and upgrading.
I. Progress of Main Activities
1. Plans were vigorously implemented and “Five Major Programs” yielded initial results
The Ministry of Industry and Information Technology (MIIT), in collaborationwith relevant agencies including National Development and Reform Commission,Ministry of Science and Technology and Ministry of Education, published andimplemented eleven supporting plans and a full range of supporting policies andmeasures . Five major programs were carried out, including the construction ofnational manufacturing innovation centers, smart manufacturing, consolidationof industrial foundation, green manufacturing, and high-end equipmentinnovation. As of now, the first innovation center -- National Power BatteryInnovation Center, was established, whereas preparation for establishing theNational Additive Manufacturing Innovation Center was underway, and 19provincial manufacturing innovation centers were built. 226 projects forcomprehensive and standardized trial as well as new model application of smartmanufacturing were implemented, 109 smart manufacturing pilot programs wereselected and the first batch of 19 public service platforms for industrialtechnologies was established. Breakthroughs were achieved for a full range ofcore spare parts, key basic materials and advanced basic technique, as a resultof the implementation of a series of major breakthrough actions and one packageapplication plan. The building of a green manufacturing system was initiated.99 enterprises were organized to conduct pilot work on green design. 51national low-carbon industrial parks were built. 57 high-risk pollutantreduction programs were undertaken. The energy consumption per unit of theadded value for industrial enterprises above the state designated scaledecreased by about 5%. High-end equipment innovations began to bear fruits,with significant breakthroughs made in areas such as key and auxiliarytechnologies of high-speed railway, and key materials for hard-shell cell ofelectric vehicle.
2. Initial progress was made in key milestone projects focusing onmajor objectives
Among the 15 key milestone projects of the year, 7 were fullyimplemented, 4 were basically implemented, and others were in progress. Someprojects achieved breakthroughs. For example, the first flexible hybridindustrial robot was successfully developed, and the capability for itssmall-volume production achieved. RV reducers has the capability for volumeproduction with overseas orders and harmonic wave decelerator is capable oflarge scale production.
3.Implementation ofpilot projects has taken root
Thework of setting up pilot cities / city clusters for “China Manufacturing 2025”was actively promoted, with 8 cities (Ningbo, Quanzhou, Shenyang, Changchun,Wuhan, Wuzhong, Qingdao and Chengdu) approved as pilot cities, and five citiesin south Jiangsu province, west bank of Pearl River in Guangdong Province andChangsha, Zhuzhou and Xiangtan of Hunan Province approved as pilot cityclusters. Currently, in line with the implementation plan, all pilot cities /city clusters started comprehensive pilot work on industrial upgrading,technological innovation, policy guarantee and talent training, and began toexplore new models and paths for manufacturing transformation and upgradingunder the new normal situation with a view to gain experiences that can bereplicated elsewhere and applied widely as early as possible.
4.Region-specific guidelines were introduced to facilitatedifferentiated development across regions
Following the principle of “promotingdifferentiated development and ministry-province cooperation based oncomparative advantages”, MIIT strengthened alignment with all localities andformulated “Province and MunicipalitySpecific Guidelines for China Manufacturing 2025 (2016)” to help solve suchlong-standing problems as redundant construction and homogeneous competition.In line with "China Manufacturing 2025", and taking into account oflocal resource advantages, industrial development status, geographicalconditions, and market environment, all localities identified development prioritiesand goals and developed related policies and measures to accelerate industrialtransformation and upgrading. By the end of 2016, 29 provinces, autonomousregions and municipalities have promulgated implementation plans or guidingdocuments designed to pursue a new environment for developing manufacturing,which suits local conditions, boasts distinctive local features, and ensures coordinationacross regions and differentiated competition.
5. The integration of manufacturing industry and Internet achievednoted results thanks to more effective policy guidance
Guided by policiessuch as Guidelines on Promoting Internet+and Guidelines on Deepening Integrationof Manufacturing Industry and Internet as issued by the State Council andas a result of efforts by all parties concerned, Internet was widely applied inthe R&D and designing process. The key products and equipment became moreintelligent. In 2016, the penetration rate of applying digital R&D toolsfor enterprises reached 61.8% and the digitalization of key processes reached33.3%. The development of “mass entrepreneurship and innovation” platforms forlarge enterprises yielded good results, in which, 47% established and operatedplatforms for collaborative innovation and the state-owned key enterprisesbuilt up 110 Internet-based platforms for "mass entrepreneurship andinnovation". Standard implementation of the administrative system for theintegration of manufacturing industry and internet proceeded smoothly involvingover 4,000 enterprises nationwide. More than 72,000 enterprises didself-assessment, self-diagnosis, and self-benchmarking, with 8.8% decrease ofoperating cost and a 6.9% increase of operating profit on average for theseenterprises. Industrial Internet was promoted and prospective studies focusingon top-level architecture and key standards as priorities were undertaken.Collaboration among enterprises, academia, research institutes was strengthenedand application was accelerated through pilot programs.
6. Initial results were achieved in qualityimprovement and branding.implementation of special action
Since the implementation of thespecial action on enhancing the variety, quality and branding for consumergoods industry, the General Office of the State Council issued Opinions on Special Actions of Enhancing theVariety, Quality and Brand for Consumer Goods Industry and Creating FavorableMarket Environment and Plan forImproving Standard and Quality of Consumer Goods (2016-2020), and MIIT, theGeneral Administration of Quality Supervision, Inspection and Quarantine, andthe State Administration of Science, Technology and Industry for NationalDefense jointly released jointly Guidelineson Special Actions of Enhancing Quality and Brand of Equipment ManufacturingIndustry and Plan for EnhancingStandardization and Quality Improvement of Equipment Manufacturing Industry.In 2016, 23 quality control and technical evaluation labs for industrialproducts were ratified, 669 compulsory standards and plans were merged andstreamlined, and 208 industrial standards for consumer goods were released. Wesupported 11 international standard drafts proposed by China, which laid asolid basis for improving the quality of consumer goods. 251 pilot enterprisesfor brand development were identified across the industry. The first batch of22 industrial clusters participating in the pilot projects for regional branddevelopment enjoyed on average 2.3% market increase, with over 10% exportgrowth rate and the output value ratio of new products increased from 27% to34.1%.
II. MainDifficulties and Problems
1. International environment remainscomplicated and challenging
The global economy is now in a period of moving toward new growthdrivers, and the role of traditional engines to drive growth has weakened.Despite the emergence of new technologies such as artificial intelligence and3D printing, new sources of growth are yet to emerge, and the global economyhas remained sluggish. Anti-globalization sentiment and protectionism are onthe rise, bringing more uncertainties.
2. Innovative development path remains to beexplored
Asthere is nooff-the-shelf experience to draw from in terms of transforming and upgradingthe manufacturing sector and achieving the shift between new and old drivingforces, we have to rid ourselves of dependence on traditional ways ofdevelopment. There is still a long way to go when dealing with issues such ashow to cultivate new industry and transform the old one, stabilize growth andadjust structure , and to address the balance of government guidance and marketrole.
3. Market forces need to be allowed to playa more effective role
Faced with pressure from economic downturns,some regions and sectors are in a rush to promote investment and stabilizegrowth. Meanwhile, we need to be fully aware of issues like the decrease ofinvestment, particularly private investment in the manufacturing sector, andthe extreme pressure that some manufacturing companies face in production andoperation. Necessary policies and measures must be developed promptly toprovide effective guidance.
III. Next Steps
1. To implement initiatives such as “Five Major Programs”
Develop and issuethecultivation plan of “mass entrepreneurship and innovation” platforms formanufacturing companies, and take special actions accordingly, focusing onimproving the supporting capability for innovative technologies such asindustrial cloud, industrial big data and industrial Internet. Promote thedevelopment of Innovation centers in the fields of robots, electronics &information and new materials, and guide and facilitate establishment ofprovincial innovation centers. Develop new models for discrete smartmanufacturing,process smart manufacturing, network coordinated manufacturing, large-scalepersonal and customized service, as well as remote operation and maintenance.Make breakthroughs in key technologies and equipment, such as additivemanufacturing, smart sensing and control. Continue to implement a series of major breakthrough actions and one package applicationplan., improve the basic system for industrial technologies, enhancebasic public service platforms for industrial technologies, and promoteinteractive development between the whole set / system and basic technologies.Facilitate development and integration of greenmanufacturing system, as well as pilot program for transforming the greendevelopment of traditional manufacturing sector, adopt clean productionprocess, improve efficiency of water resource utilization and transform basicmanufacturing technique in an environment-friendly way. Focusing on thedevelopment of key systems and core parts, facilitate breakthroughs in a rangeof key equipment which are subject to export restrictions abroad and urgentlyneeded domestically, such as aero-engines, gas turbines and high-end CNC machine tools.
2. To extend coverage of pilot cities and city clusters
Select 20 to 30 cities / clusterswith good conditions and exemplary role, and continue to promote pilot programsof “China Manufacturing 2025”. Provide guidance to pilot cities /city clustersin initiating the work on implementing the five new development concepts, waysto achieve tasks and supporting policies and measures. On the one hand, enhancecoordination and supervision, establish evaluation system and create anenvironment where central government, provinces and pilot cities focus on keyareas, collaborate and support each other; on the other, by making use of the interactivemechanism at different levels, enhance guidance and regulation, and pursuedifferentiated development of the manufacturing sector across regions.
3. To accelerate theconstruction of key milestone projects
We will coordinate theimplementation of the key milestone projects for 2016 which are still inprogress, to specify the division of responsibilities and schedule, to ensuresound implementation of the projects. Furthermore, focusing on key areas andbottlenecks defined in “China Manufacturing 2025,” we will continue to select arange of projects which have a sound foundation and high relevance, and whichhave long been the bottleneck for the industry and are likely to achievebreakthrough in the next 2 or 3 years, as key milestone projects for 2017 toadvance with concentrated efforts.
4. To implement a new round of key programs on technologicaltransformation and upgrading
Implement the key project package for transformingand upgrading manufacturing sector, support major projects on transformation ofcorporate intelligence, upgrading of basic capabilities, promotion of greenmanufacturing, development of high-end equipment. Continue to publicize Investment Guidelines on TechnologicalTransformation and Upgrading of Industrial Enterprises, strengthen guidancefor enterprises, localities and financial institutions. Improve the database onkey corporate technological transformation projects and compile annual guidingplan, enhance information sharing and matchmaking between industry andfinancing, and develop financial products and services that match withtechnological transformation.
5. To optimizedevelopment environment for manufacturing sector
Streamline administration and delegate more powers, improveregulation and optimize services. Speed up the transformation of governmentfunctions, improve regulation on industrial access, and establish anoperational and post-operational regulatory system which is transparent andefficient with clear division of rights and responsibilities. Implementtargeted industrial policies and strive to make policies inclusive and functional.Improve synergy and coordination between industrial policies with those oftaxation, financing and trade. Support SMEs development, implement preferentialtaxation policies already in place, support innovative ways of financing formicro- enterprises and reduce effectively costs of enterprises.
6. To promoteinternational exchange and cooperation
Implementing thephilosophy of open development, we will promote alignment of “China Manufacturing 2025” with the industrial developmentstrategies of international partners through various bilateral or multilateralcooperation mechanisms, and enhance international cooperation in smartmanufacturing, expand cooperation in industrial investment with countries alongthe Belt and Road regions, implement key projects on international capacitycooperation, in order to achieve win-win cooperation.