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Foshan Nanhai Ruilifeng Machinery Factory

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How China's Industry Goes Green in the New Era
Release time: 2018-04-13

With the advent of the intelligent era, China's manufacturing economy is facing huge choices. So in the new era, how can China's industrial economy develop at a high speed? The word "innovation" reminds Chinese industries that only by innovative development can they win the "ticket" for transformation and development.

An economic train galloped across the Chinese land and slowly slowed down to the crossroads. Trains face two tracks at the crossroads: one is a traditional development track based on steel and cheap labor; the other is an innovative development track that targets technology and brands. The red light warning has been lighted up at the traditional development track. This track has come to an end and flashed the "middle income trap". But the track of innovation and development flashes green, reminding China to seize the opportunity to quickly pass through the transition, and do not miss the opportunity for transition and development.

Facing the two kinds of development tracks at the crossroads, China's industrial economy is facing a choice of opportunities: should it run along the traditional development track or switch to the innovative development track? Is it to seize the opportunity to drive at full capacity for innovation and development or to move slowly? To turn to the track of innovation and development, we must seize the period of opportunity, and go straight along the traditional track to lose the period of opportunity, and even fall into the "middle income trap".

After more than 30 years of reform and opening up, China's economic train has grown at a rate of more than 10% of GDP every year for the past ten years, creating a lot of wealth and winning the consensus of countries around the world: "China has created a world miracle." China's urbanization has reached 55%, and industrialization has entered the middle and late period. In more than 30 years, China has gone through a century-long process in Europe, America and other countries. However, China's industrial economy is still a world power rather than a powerful country, and many high-end manufacturing technologies and equipment need to be imported to developed countries. This is as stated by Zhang Guobao, former deputy director of the National Development and Reform Commission. China ’s manufacturing industry has two “sicknesses”, one is “heart disease”, that is, aircraft engines, etc. are dependent on imports; Years ago almost all were imported. On the other hand, China lacks world-class strong brands, especially automobiles, machine tool equipment and construction machinery products. At the same time, it is no longer possible for China to rely on high-speed development of heavy chemical products such as steel and cement with high energy consumption and low added value. China ’s steel and cement in 2012 accounted for 45% to 48% of the world ’s total, but only created about 16% of the world ’s GDP. To this end, we must cherish, seize, and make good use of this once-in-a-lifetime opportunity.

Cherish the period of opportunity. Now China's industrial economy has formed a complete manufacturing system. The total amount of equipment manufacturing and manufacturing has become the world's largest country in the past few years, and 220 of the more than 500 products have become the world's largest. The output of steel, cement, coal, etc. has accounted for about 47% of the world's total. In particular, aerospace and shipbuilding technologies have reached world advanced levels. Breakthroughs have also been made in shaping industrial and manufacturing brands. According to statistics, of the 86 types of products sold in the country, 10 brand products have accounted for about 60% of the total 86 products. Ʊ appliance products have been concentrated in several brands such as Haier, Gree, Hisense and Midea. Haier has gone abroad to acquire and reorganize enterprises in many countries, with top sales, and construction machinery, machine tools and other products have also focused on dozens of brand competition. In. According to statistics from the World Bank in previous years, the total value of China's manufacturing industry in 2010 accounted for 19.8%, exceeding the United States' 19.4%. According to the statistics of the International Industrial Yearbook 2011 of the United Nations Industrial Development Organization, among the 22 statistical categories, the value added of China's manufacturing industry accounted for 12 in the first place and 9 in the second place. China has become a large industrial country and a large manufacturing country. It is precisely because of the rapid development of industrial and manufacturing industries in China in the past few years and great achievements that China has ushered in a period of opportunity for transformation and development. Imagine if China was still in the process of refining steel for the 1,070-ton steel target in 1958 and in the Cultural Revolution, could China have such a period of opportunity? Today's period of opportunity is exchanged by Chinese industry's hard work and wisdom. If this period of opportunity is not cherished, the achievements that have been made will still be lost.

Seize the period of opportunity. China is now in a critical period of progress towards industrialization. According to the "Industrialization Progress Report of China" issued by the Chinese Academy of Social Sciences, the industrialization comprehensive index of countries around the world is 0 ~ 33, which is the initial stage of industrialization; 33 ~ 66 is the middle stage of industrialization; 66 ~ 100 is the late stage of industrialization. According to the 2010 digital assessment analysis, China's comprehensive industrialization index is around 72. The report believes that China has entered a critical period of industrialization. According to the analysis of the report, China will complete industrialization around 2018, and at the latest by 2021. For this reason, China is now in a period of opportunity for transformation and development. In this period of opportunity, industrialization and urbanization need to be developed in close coordination. The development experience of more than 30 years in various countries in the world proves that the increase in the level of urbanization is often accompanied by a decline in the proportion of industrial output in GDP and an increase in the proportion of services. At present, China's industrialization has reached its final critical period. During this period, there is an urgent need to reduce the number of repeated industrial projects and spread the shop, and the extensive operation mode at the cost of consuming a large amount of material, energy and polluting the environment. This development will inevitably cause serious overcapacity and a huge waste of productivity. This trend has now emerged. It is important to point out that China has a large population, a large area, and a background in the development of heavy chemicals. It is easier to follow the path of traditional industrialization. Without accelerated transformation and development, China ’s industrialization process is likely to appear more than American industrialized junior high schools. More severe overcapacity. To this end, it is even more necessary to seize the opportunity and increase the intensity of transformation.

Take advantage of the opportunity period. It is better to cherish the opportunity period; to seize it, it is better to make good use of it. The most important thing for China's industrial economy now is to make good use of the "second quarter" of China's industrialized rockets to help the "third quarter" take off.

There have been positive and negative lessons and experiences in the international community. The World Bank raised the "middle income trap" twice in 2006 and 2010. And put forward the common characteristics of the "middle income trap": economic growth decline or stagnation, rich and poor differentiation, employment difficulties, social turmoil, social public service shortage, fragile financial system, frequent corruption, excessive urbanization and abnormal development. Countries such as Argentina and Mexico entered the ranks of middle-income countries in the 1970s. However, due to excessive income gaps, domestic demand has grown slowly. At the same time, some manufacturing industries are upgrading to high-end manufacturing and social service industries. The process was interrupted, and it stayed in middle income for a long time. It was called a country trapped in the middle income trap. Another example is Brazil's per capita GDP in the 1970s has reached 450 US dollars. However, due to imbalanced income distribution, advanced urbanization and unbalanced industrial structure, the economic growth in the 1980s was slow and it remained in middle-income countries for a long time. The painful lesson of these countries is that when the rapid development of new economies enters middle-income countries, if they miss the opportunity period for transition and development, they will fall into the "middle-income trap."

In contrast, Japan and the "Asian Dragons" have successfully completed the middle-income development stage and entered the ranks of high-income countries in just over 20 years. According to media reports, their common feature is that investment rates rise first and then fall. Rely on the high investment rate to overcome the poverty trap, maintain high-speed development during the imitation phase, and support rapid economic growth; when the maximum value appears in the imitation phase, the investment rate gradually decreases; the income distribution gap of residents first widens and then gradually narrows. The income gap in the early stage is widened to stimulate the flow of production resources to achieve optimal allocation; the income gap in the later stage is reduced to increase the proportion of the middle-class population and maintain social stability; imitate and innovate first, imitate the world's leading technology in the early stage, save costs, and give full play to the advantages of the country's late development; In the later period, it switched to independent research and development to ensure that the economy gained sustainable growth momentum.

China's economic train has come to the crossroads and has slowed down the growth rate. China's industrial economy should seize this period of opportunity, overcome the inertia transition and enter the track of innovation and development, and advance towards the goals of science and technology and brands.

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