From October 15 to 18, 2010, the Fifth Plenary Session of the 17th CPC Central Committee will be held in Beijing. The meeting will review the "Proposal for the CPC Central Committee on Formulating the Twelfth Five-Year Plan for National Economic and Social Development." Experts revealed that vigorously cultivating and developing strategic emerging industries will be clearly identified as one of the priorities for the preparation of the “Twelfth Five-Year Plan,” and the direction, strategic focus, and major initiatives for related industries will also be determined. Among them, high-end manufacturing may become a top priority.

"Made in China" Upgrades Cannot Delay

The Chinese Academy of Social Sciences proposed the "China Blue Book on City Competitiveness in 2010" published at the end of April to put forward the strategic objective of China's national competitiveness: By 2050, it will become the world's second largest country after the United States. By 2020, China will become an advanced country with a comprehensive and strong, key first-rate, and an overall middle-upper level.

There is no doubt that China still has a considerable gap from this goal. Director of the Department of Planning, Ministry of Industry and Information Technology, Miao Mo proposed that "the high-end manufacturing industry is an important indicator of a country's comprehensive competitiveness." But at present, China's manufacturing industry is still low-end.

Owing to the lack of core technology, OEM production is still the universal survival mode of “Made in China”. Among them, the automotive industry is the most prominent. In addition, most manufacturing companies in China still focus on low-end manufacturing fields such as general consumer spending and raw materials. The high-end equipment products that represent the development level of a country's manufacturing industry, various sectors of the national economy, and industries that are urgently needed are still heavily dependent on imports. At present, China’s annual total investment in fixed assets in the country’s total equipment purchases is less than half of domestic equipment.

In recent years, the advantages of low labor costs in China are gradually disappearing, and the upgrade of “Made in China” has become an urgent task. To this end, the country has clearly listed high-end manufacturing industries as one of the strategic emerging industries. The high-end manufacturing industry is at the high end of the manufacturing value chain. It has the characteristics of high technology, knowledge, high added value, good growth, strong keyness, and high mobility.

At the same time, information network technology will also drive the upgrading of the manufacturing industry. Any traditional manufacturing industry, once it adopts revolutionary information technology, may develop into a high-end manufacturing industry. Luo Jun, CEO of Asian Manufacturing Industry Association, proposed that in the next five years, a new generation of information technology represented by the Internet of Things will promote the rise of high-end manufacturing, and will promote the establishment of a huge industrial chain.

Government investment is more than 4 trillion yuan

The goal of developing high-end manufacturing has been clarified. How to develop is an important issue.

First of all, we must clarify the focus of development. In the view of the Ministry of Industry and Information Technology, this focus should be on equipment manufacturing. Large-scale equipment manufacturing industry is the high-end field of manufacturing industry. High-tech and advanced management models in manufacturing industry are basically embodied in equipment manufacturing. The largest profit space in manufacturing industry is also equipment manufacturing. Equipment manufacturing represents the direction of the entire manufacturing industry and determines the level of the entire manufacturing industry. Including heavy machinery, ships, aircraft, power generation equipment, large boilers, metallurgical machinery, mining machinery, special equipment and other large equipment manufacturers.

Followed by a clear path for development. Improving the ability of independent innovation is the key to development. In order to stimulate the innovation enthusiasm of enterprises, government investment will increase during the “12th Five-Year Plan” period. At present, in the field of science and technology, the country’s R&D investment accounts for about 1.5% of GDP; in the next five years, this proportion will increase to 2% to 2.5%.

According to the data, China’s GDP in 2009 was 335,353 billion yuan. If the annual economic growth rate is maintained at 8% in the future, scientific research input during the 12th Five-Year Plan will reach 4.5892 trillion yuan, more than the 4 trillion investment in 2008. . These are just scientific investment, but they have not yet included such factors as project investment and tax deductions.

While increasing financial investment in scientific research, the country will also establish an innovation alliance and a number of innovation platforms in the field of high-end equipment manufacturing, which will enable companies, universities and institutes to unite scientific research forces and make key breakthroughs in key areas.

High-end manufacturing clusters will rise

Liu Baicheng, a well-known equipment manufacturing expert, believes that the independent innovation capability of the high-end manufacturing industry will certainly break through during the “12th Five-Year Plan” period and form a number of high-end manufacturing clusters with unique advantages.

At present, a large number of industrial powers have emerged in the world, which can be broadly divided into three types: first, top-ranking industrial powers that are all-powerful in corporate technology, markets, and industries, such as the United States, Japan, and Germany; At the same time, there are strong industrial powers with strong local strengths, such as the United Kingdom, France, and Italy. Third, industrial powers with strong local strengths, such as Switzerland, South Korea, Sweden, and Russia.

Mok thinks that these various types of industrial powers have a group of high-end manufacturing industries with strong independent innovation capabilities and strong resource integration capabilities. Its main features are as follows: First, the company's international competitiveness is strong; Second, the ability of technological innovation is first-rate; Third, the international leader in industrial clusters; Fourth, the industrial system is green; Fifth, the soft power of culture, education, and producer services are outstanding.

In August 2010, Li Yizhong, Minister of the Ministry of Industry and Information Technology, clearly stated that the Ministry of Industry and Information Technology will formulate ideas and key projects for the development of the “12th Five-Year” equipment industry, optimize the spatial layout of industries, and promote the coordinated development of regional and industrial industries.

Liu Baicheng stated that any region may rely on independent innovation to develop differentiated high-end manufacturing industries. From the existing basis, the four regions have begun to take shape.

The first is the advantageous industries such as shipbuilding in the Yangtze River Delta region. The Regional Plan for the Yangtze River Delta clearly stated that it would take advantage of large-scale machinery, complete sets of equipment, and research and development of automobiles and ships to consolidate and upgrade the level of equipment manufacturing. Focusing on Shanghai, Nantong and Zhoushan, build large-scale shipbuilding and marine engineering equipment bases. In combination with the structural adjustment of the shipbuilding industry in Shanghai and the relocation of shipyards in the Huangpu River, the construction of Changxing Island Shipbuilding Base will be focused on.

Followed by the old industrial base in northeastern Shenyang. Shenyang is known as China's "backbone of equipment manufacturing industry" reputation, with Shenyang Machine Tool, Dalian Machine Tool and other key enterprises and supporting enterprises. Among them, the middle and high-end CNC machine tools of Shenyang Machine Tool entered the core manufacturing fields of the national key industries in batches.

In addition, the large aircraft manufacturing industry in the Jingjintang area and the automobile manufacturing industry in the Pearl River Delta are likely to consolidate their existing advantages during the “Twelfth Five-Year Plan” period and form an industrial cluster that will take shape.

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