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Liu Lihua: promote industrial transformation and upgrading with openness

Liu Lihua, Vice Minister of the Ministry of industry and information technology, published a signed article "tempering Chinese industry with wider openness" in the 12th issue of seeking truth in 2013. The full text is as follows:

practice has proved that expanding opening up is an important driving force to improve the quality and efficiency of China's industrial development. Through unremitting efforts, China's industrial development has initially formed its core competitiveness and is moving forward from an industrial power to an industrial power. To achieve the goal of becoming an industrial power, we must unswervingly promote development, reform, and innovation through opening up, deeply promote industrial transformation and upgrading, and improve the quality and efficiency of industrial development

first, China's industry has stood at a new starting point of opening up and development

over the past 35 years of reform and opening up, China has always adhered to the basic national policy of opening up to the outside world and promoted the industrial development to achieve a historic leap forward. After long-term efforts, China has established an independent and complete modern industrial system, with a modern industrial system of 41 industrial categories, 201 medium categories and 581 sub categories. It has become a country with all the industrial categories in the United Nations Industrial Classification, which basically meets the needs of economic and social development and national defense construction. The scale of China's manufacturing industry has leapt to the first place in the world. Among the 500 kinds of major industrial products, China has more than 220 kinds of output, ranking first in the world, among which the output of crude steel, cement, computers, air conditioners, color TVs, etc. accounts for about half of the world. According to relevant statistics, the total value of China's manufacturing industry accounted for 19.8% of the world in 2010. China's industry has formed obvious comprehensive competitive advantages. Relying on the low labor cost, complete industrial supporting facilities and good infrastructure, industrial development has formed a unique factor combination advantage, and the international competitiveness of the manufacturing industry has been continuously improved. According to the report of the United Nations Industrial Development Organization, the world ranking of China's industrial competitiveness rose from 31st in 2000 to 5th in 2010. On the basis of rapid industrial development, China's economy has achieved integration with the world economy. In 2012, China's exports of goods accounted for 11.2% of the world, ranking first in the world; The import of goods accounts for 9.8% of the world, ranking second in the world, and the proportion of manufactured goods in the export of goods reaches 95%. The scale of foreign investment attracted has ranked first among developing countries for 21 consecutive years, accounting for 7% of global transnational investment. The pace of enterprises' going global has accelerated, with non-financial foreign direct investment reaching US $77.2 billion, and a number of multinational companies have grown up

it is in the deepening opening up that China has rapidly risen to become a world industrial power. However, the problems of large but not strong industry and weak core competitiveness have become increasingly prominent. First, the international industrial division of labor has a low status. The advantages of China's manufacturing industry are mainly reflected in the broad market and low factor cost, and this low-cost advantage mainly exists in the middle and low-end industries, products and production links. At present, China's foreign economic development mode is extensive, and the export of processing trade accounts for 42.1%. Most enterprises lack core technology and independent brands, and their products have low added value and low income. The second is the lack of discourse power in international trade. Industry has long relied on low-cost advantages to occupy the international market, and lacks the right to speak in international trade, especially pricing power. It often buys what is expensive and sells what is cheap. For example, China's iron ore imports account for more than 60% of the world, and its textile and clothing exports account for more than 35% of the world. However, trade pricing is controlled by others, and a large amount of profits are earned by foreign enterprises. Third, the high degree of external dependence endangers industrial safety. In 2012, China's crude oil, iron ore, bauxite, copper ore and other important resources reduced the weight to a very low level, and the dependence on resource imports exceeded 50%. More than 90% of photovoltaic products depended on exports, and many products were too dependent on the international market. Complex and volatile international geopolitical risks, sharp fluctuations in commodity market prices, and intensified international trade frictions have all brought severe challenges to China's industrial security. Fourth, the international operation ability of enterprises is weak. Due to the shortage of international business professionals, Chinese enterprises generally lack the ability to safeguard their legitimate rights and interests by using international prevailing rules, and face greater risks when going global. At present, the overall scale of China's going out is relatively small, and the internationalization level needs to be improved. Fifth, the opening-up development strategy and priorities need to be adjusted in time. In the early stage of reform and opening up, China was short of capital and technology. It was reasonable to focus on exports and the use of foreign capital. At present, based on this stage, China's foreign exchange reserves have ranked first in the world, with 73 enterprises ranking among the world's top 500. There is a structural overcapacity in the manufacturing industry, and the open development has entered a new stage of paying equal attention to both bringing in and going out. At present, we must accelerate the implementation of the "going out" strategy and actively participate in global economic governance while optimizing the trade structure and improving the level of foreign capital utilization

The biggest change in the new normal is the change in the driving force of economic development. Second, China's industry is facing the new situation of opening up and development. The 18th CPC National Congress put forward two 100 year goals. The process of achieving this goal is the process of promoting economic and social modernization, and in the final analysis, the process of promoting industrialization. This requires us to scientifically grasp the new opportunities and challenges of China's industrial development, promote the opening-up of industry in a wider range, wider fields and deeper levels, tap the growth potential in the overall planning of two markets and two resources, and promote the overall strength and core competitiveness of industry to a new level

from an international perspective, economic globalization is developing in depth, and the global industrial chain pattern is undergoing profound changes. First, the international division of labor in industry has been profoundly adjusted. Developed countries have implemented Reindustrialization and manufacturing return strategies, stepped up control of the high-end links of the industrial value chain by virtue of capital and technological advantages, and emerging economies increased investment in the development of comparative advantage industries. China's industrial development is facing both the dilemma of squeezing at both ends and the opportunity to use global innovation and factor resources to enhance the status of international division of labor. Second, the market competition is becoming more intense. Since the outbreak of the international financial crisis, the global economy has been in a continuous downturn, the oil suction filters and filter elements have been replaced regularly, the market demand structure has changed significantly, the international market competition has become more intense, various forms of trade protectionism have risen significantly, and the number of trade frictions and disputes faced by China has increased continuously. In 2012, China suffered 77 trade remedy investigation cases, involving US $27.7 billion, an increase of 11.6% and 369.5% respectively year-on-year. Third, scientific and technological innovation and industrial reform breed new breakthroughs. Since the beginning of the new century, the innovation of science and technology, industry and business model in the world has been unprecedented active, and the new industrial revolution is gradually approaching. Whether we can seize the new round of development opportunities characterized by the integration of information technology and advanced manufacturing technology and seize the commanding heights of science and technology and industrial competition will largely determine China's position in the future world economy

domestically, the environment and conditions of China's industrial development have undergone profound changes, and the task of changing the mode of industrial development is very urgent. First, the 18th CPC National Congress put forward new requirements for industrial development. According to this strategic deployment, China will basically realize industrialization by 2020, providing a material basis for building a moderately prosperous society in an all-round way. From now on, there is not much time left for us to basically achieve the goal of industrialization. We must accelerate the strategic adjustment of the economic structure, strive to promote the healthy development of strategic emerging industries and advanced manufacturing industries, and lead the overall modernization of the economy and society with modern industry. Second, energy resources and environmental constraints force industrial transformation and upgrading. For a long time, China's industrial development mode is extensive, energy and resources consumption is too large, and environmental pollution is serious. At this stage, China's energy resources supply and ecological environment can no longer support the extensive expansion of high input, high consumption and high pollution. Taking the road of new industrialization is the only way for China to become an industrial power. We must focus on improving quality and efficiency, effectively change the mode of industrial development, and accelerate the pace of transformation and upgrading. Third, the weakening of traditional competitive advantages highlights the urgency of rebuilding new competitive advantages. In recent years, China's labor costs have increased significantly, the prices of land, fuel power and other factors have continued to rise, and the traditional low-cost competitive advantage has gradually weakened. To improve international competitiveness, we must speed up the implementation of innovation driven strategy, pay attention to improving the internal quality of industrial development, strive to cultivate and form new competitive advantages, and promote the dynamic and orderly transformation of competitive advantages

the trend of economic globalization and the accelerated integration of China's economy into the world is irreversible. In this context, only by complying with the general trend of world economic development and participating in international competition and industrial division in an all-round way, can China's industry form a new competitive advantage in global competition. Historical experience tells us that closing the door is a dead end for our development, and it will definitely not work. In the long run, in order to cultivate new industrial competitive advantages, China must implement a more proactive opening-up strategy, promote China's industry to better integrate into the global economic system, expand opening-up, promote industrial transformation and upgrading, and strive to improve the ability of China's industrial enterprises to optimize the allocation of resources on a global scale, so that they can grow in the fierce international competition

III. promote industrial transformation and upgrading with opening up

at present, we need to further improve the level of opening up, coordinate global industrial reform and domestic industrial transformation and upgrading, make better use of two markets and two resources, and promote China's transformation from an industrial power to an industrial power

improve the core competitiveness of the industry. Focusing on the goals and practical needs of industrial transformation and upgrading, we should adhere to the combination of attracting investment, technology and intelligence, support multinational companies to set up R & D centers in China, increase R & D investment, actively introduce high-tech talents to set up enterprises or engage in scientific research in China, and give full play to the role of external brain in promoting the transformation from made in China to created in China. Encourage domestic enterprises to deeply participate in the global value chain cooperation of transnational corporations, actively learn from foreign advanced ideas and experiences in quality management, brand building and marketing, promote the technology, quality and management innovation of domestic enterprises, focus on cultivating a number of brands with international influence, support the development of a number of large enterprises and groups with international competitiveness, and accelerate the formation of technology, brand, quality New advantages with service as the core

coordinate the international industrial division and domestic industrial layout. Seize the favorable opportunity of profound adjustment of the global economic pattern, promote the advantageous fields and strategic emerging fields to actively participate in international competition and cooperation, and speed up the entry into the high-end links of the global industrial value chain. Vigorously promote the transformation and upgrading of traditional industries, promote the extension of processing trade from assembly processing to R & D, design, core parts manufacturing and other links, and strive to improve the added value of China's manufacturing industry. While promoting the eastern coastal areas to participate in international competition at a higher level, we should attach importance to the establishment of an overall planning and coordination mechanism for industrial transfer between domestic regions, and guide and encourage the orderly transfer of industries from the eastern coastal areas to the central and western regions. We should reasonably guide the direction of foreign investment, improve the level and ability of the central and western regions to utilize foreign investment, and make the fruits of opening up and development more beneficial to the central and western regions

accelerate the pace of enterprises going global. Chinese enterprises are in a new stage of using global resources for development. Enterprises should be encouraged to invest and build factories in overseas areas close to markets and resources, and guide the orderly outward transfer of technologically mature industries such as light industry, textiles, household appliances, primary processing links in steel, nonferrous metals, petrochemical and other industries, as well as industries with excess capacity. Large enterprises with strong strength and abundant capital should be supported to invest through cross-border mergers and acquisitions or green space,

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