Economic Development and Environmental Sustainability
About IEEPA  |  Careers  |  Contact Us  |  Chinese      
2015 39th Issue: Yin Chengjie, industrial transformation and upgrading of economic development during the period of new normal

Introduction: Yin Chengjie, IEEPA Senior Consultant, Special Researcher at the State Council, former Deputy Secretary of the Party Committee, Deputy Minister of the Ministry of Agriculture.

Promoting industrial transformation and upgrading during the period of new normal is an important task. In today's forum ,we discussed business transformation and innovation, reflecting the requirements of the Central Economic Work Conference, which is very meaningful. In accordance with the arrangements for the meeting, there will be discussion about industrial transformation and upgrading of economic development during the period of new normal.

First, it is imperative to accelerate the industrial restructuring and upgrading

In recent years, the transforming and upgrading of our industries and enterprises has made significant progress. Industrial transformation and upgrading mainly refers to the optimization of industrial structure, using scientific and technological progress to enhance the overall quality of companies, and improving the competitiveness of the industry. It is crucial that businesses adapt to changes in domestic and foreign markets, especially in the economic development of our country into the "new normal" .Industries and enterprises face new requirements , which makes transforming and upgrading vital for them to keep up.

Second, demand expansion is an important way to achieve industrial transformation and company upgrades

China¡¯s economy has experienced a period of rapid growth, bringing not just major achievement but also a series of new contradictions and problems. Excess production capacity, for example, is a prominent issue. This problem exists throughout the energy industry, processing and manufacturing, and the building materials industry. We have had 35 years of reform and opening-up, in which we¡¯ve gone through the same industrialization that other developed countries went through in two centuries. China has more than 220 kinds of the 500 most important industrial products in the world. The world's crude steel production in 2012 was about 1.4 billion tons of which China produced 720 million tons. China¡¯s production of aluminium alloy, cement and other products accounts for more than 50% of world output. Excess capacity creates high consumption of resources and environment and is a serious waste of social resources. Absorbing this excess capacity is an important task for our country¡¯s economic development. The most fundamental question we face is to absorb the excess capacity, and to rid industries and enterprises out of energy-consuming, high pollution, low-value production of products. The root of overcapacity is outdated technology and obsolete products, which are caused by companies failing to transform and upgrade. Getting rid of overcapacity also helps industries, as transformation and upgrades will increase market demand. In order to expand domestic demand, we must focus on expanding the country¡¯s agricultural and rural demand. It is currently up to China¡¯s agricultural and rural industries to absorb excess capacity, enabling the transformation and upgrading of space. We often say that industry re-feeding agriculture and cities support the countryside, and rural areas provide space for the transformation and excess capacity. That means we want economic development in the transformation and upgrading of industries and enterprises, as well as a correct understanding of the potential of agricultural and rural demand.

Third, innovation is the driving force behind transforming and upgrading industries and enterprises

Today's global scientific and technological innovation is both an opportunity and a challenge for our country. Global scientific and technological innovation is both revolutionary and subversive, and while we have some industries and enterprises succeeding today, tomorrow there may be some new innovation and the old winners may fail. Getting out of the traditional technology, contraction of the traditional business model , both proved this point. Opportunities and challenges only exist with the innovation of the industries and enterprises. Without the innovative spirit, we can't seize opportunities or cope with challenges.

Innovation is the driving force of development. Transformation and upgrading of industries and enterprises rely on the innovation-driven ability of industry and enterprise. From the institutional mechanisms, technology management and organizational models of innovation, we can vigorously promote innovation, integrated innovation, and systematic innovation.

Forth, establish and improve the policy measures to support the transformation and upgrading of industries and enterprises

To promote transformation and upgrading of industries and enterprises, we must adopt a series of policies and measures to arouse enthusiasm and stimulate the whole society to encourage innovation and promote the transformation and upgrading of initiative and creativity.

Copyright 2008-2017 IEEPA.ORG.CN All Rights Reserved