Strong Countries Difficult to be in Industry: Analyzing the Core of China's Industrial Power

After years of rapid economic growth, China’s position as an economic power has been established globally, and the title of “World Factory” in manufacturing has been recognized. The formation and success of this economic development model has benefited from the combination of openness and globalization in China's domestic market – which has activated China’s comparative advantages in labor and natural resources.

In recent years, with the expansion of economic aggregates, China's internal development environment has gradually changed - the slowdown in growth rate has led to a relative contraction in the advantages of the scale of demand; the increase in factor costs has reduced the supply of competitive advantages; while the medium and long-term inflation The pressure has intensified the instability and uncertainty of the growth; the domestic resources and environment under the development of the manufacturing industry have reached their limits.

At the same time, the external environment in which China relied on after the outbreak of the international financial crisis also changed. In response to the global financial crisis and the European debt crisis, advanced economies such as the United States and Europe gradually realized that industry was the “fundamental” for the development of the economy.

Andrew Dow, CEO of Dow Chemical Company, a well-known chemical industry company in the US In his book "Made in the United States" published by Livlis, Livlis specifically stated that "The U.S. government should formulate a policy of 'rejuvenation of the manufacturing industry.'" People have noticed that what he said was not "economic recovery" but "manufacturing revival." Some people say that the most important "rescue plan" for the United States now is to create new industrial policies that are encouraged to be made in the United States. Some people say that this is just a common idea for the global economy to see how the "Swallow returns". Some people say that China is ending the era of "perfect factory of the world" in people's minds. An article published in the “Time” magazine of the United States stated that in the past, the United States only attached importance to research and development but put manufacturing to developing countries. As a result, these backward countries that have learned the technology have become more sophisticated and have accumulated in the production process. Innovation and experience. When countries that compete with the United States have the policy of subsidy and incentive investment, the United States is left behind. "The United States needs a manufacturing policy to maintain its competitiveness."

The result of the rebalancing of developed economies is the proposal of “reindustrialization”, which is to reduce the leverage of the financial industry and reform the manufacturing and export industries. It is difficult to make precise judgments as to what changes this trend will create, but it is undoubtedly necessary to consider the factors that constitute the external environmental changes in China's economic development.

However, no matter how Europe and the United States deploy “reindustrialization”, we must all consider how to better accelerate industrialization. All must consider how to achieve better industrialization. We must consider how to rely on industrial revitalization to push China into a new stage of economic development. . In response to the global economic changes, China will also complete the adjustment of its economic development structure and the optimization and upgrading of its industries. This is the importance and difficulty of the problem.

When Premier Wen Jiabao made the "Government Work Report" to the Fifth Session of the 11th National People's Congress, he pointed out that gross domestic product (GDP) growth in 2012 was 7.5%, which was the first time that the GDP growth target was below 8% in eight years. Taking the initiative to shift the economic growth rate downwards during the “12th Five-Year Plan” period can be regarded as a stage indicator for the introduction of China’s economy into a new development model driven by model innovation and technological innovation after a period of rapid industrialization has taken shape.

This process is actually looking for a new orientation of the Chinese economy in the global scope in the future. It will include new industries and market environments, and will seek and nurture new development models and new comparative advantages in all industries. It will eventually be completed globally. Competitive industrial transformation and upgrading of the entire country, and thus systematically promote the leap from "economic power" to "economic power."

From "big" to "strong," the difference between words has become a key point in testing the wisdom and capabilities of our entire country and nation. At the end of last year, on the eve of the Central Economic Work Conference, the cover story of a group of “Return to Industry” published by the “Financial State Weekly” once caught the attention of readers. At the time of the national “**” conference, we again covered a group of cover stories, aiming to discuss how to realize the national industrial catch-up strategy and how to find our core industrial competitiveness through specific anatomy of several industries and companies. . We hope to analyze the strengths and weaknesses of the industrial development model, the comparison of international competitiveness, and future industrial development strategies. We will analyze the core of China’s industrial power and find a way for the industry to rise globally.