In recent years, what are the achievements of China’s industrial development? What are the specific tasks for scientific and technological innovation to lead the construction of a modern industrial system? How to vigorously promote new industrialization in the next step? In response to these questions, Jin Zhuanglong, Secretary of the Party Group and Minister of the Ministry of Industry and Information Technology, recently answered questions from reporters.

Standing at a new and higher starting point, we will consolidate and strengthen the recovery of the industrial economy

Reporter: In recent years, what achievements have been made in China’s industrial development? What is the current development trend of industrial economy? What will be the next step?

Jin Zhuanglong:

China insists on the focus of economic development on the real economy, the pace of new industrialization has been significantly accelerated, the overall strength of the industry, quality and efficiency, innovation, competitiveness, and risk resistance have been significantly enhanced, and industrial development stands at a new and higher starting point.

The unique advantages of “whole”, “many” and “large” industries are more obvious. First, the system is complete. China has 41 industrial categories, 207 industrial categories and 666 industrial subcategories, and is the only country in the world with all industrial categories in the United Nations industrial classification. Second, there are many varieties. In 500 kinds of major industrial products, China has more than 40% of the product output ranked first in the world, personal computers, mobile phones, air conditioners, solar panels and other important products output accounted for more than half of the world. Third, the scale is large. In 2022, China’s total industrial added value will reach 40.16 trillion yuan, accounting for 33.2% of GDP; The added value of the manufacturing sector reached 33.5 trillion yuan, almost double that of 2012. China is the world’s largest manufacturing country, manufacturing value added accounted for about 30% of the global proportion, ranking first in the world for 14 consecutive years.

The pace of manufacturing “getting stronger” continues to accelerate. The industrial structure has been upgraded at a faster pace, with the added value of high-tech manufacturing increasing from 9.4% in 2012 to 15.3% in the first three quarters of 2023, and the proportion of equipment manufacturing increasing from 28% to 32.9%. In some key areas and key racetracks, a number of competitive industries with the whole industrial chain have been formed. Export structure continued to improve, the first three quarters of 2023, new energy vehicles, lithium batteries, photovoltaic products and other “new three” total exports increased by 41.7%. The regional layout has been continuously optimized, 45 national advanced manufacturing clusters have been built, and the output value of the leading industries has exceeded 10 trillion yuan, accounting for about 30% of the total output value of the subordinate industries.

The information and communication industry has developed by leaps and bounds. China has built the world’s largest and technologically advanced information and communication network, ranking second in the world in terms of computing power, and built 3.282 million 5G base stations to provide gigabit access to cities, 5G access to counties, and broadband access to villages. The technology industry has realized the transformation from “following imitation” to “leading innovation”, the global proportion of 5G standard necessary patent claims has reached 42%, and the research and development of cutting-edge technologies such as 6G and quantum communication is in the first camp in the world. Convergence applications accelerate the whole process of economic and social fields, China has become the world’s largest and most active digital consumer market, industrial Internet applications have been integrated into 49 national economic categories. The overall scale of the cybersecurity industry has exceeded 200 billion yuan.

On the whole, China’s industrial development has made great progress, but it is still at an important threshold of becoming stronger and climbing uphill. At present, the determinative factors and favorable conditions for sustainable development in China are increasing, especially the National Conference on the Promotion of New Industrialization held from September 22 to 23 last year, which has injected strong confidence and strength into our work. In addition, China is also facing a new round of scientific and technological revolution and industrial change brought historic opportunities, in recent years by seizing the “first hand chess”, a new generation of information technology, new energy and other key areas have formed a first-mover advantage. Going forward, we have the confidence and ability to seize opportunities and meet challenges, make new breakthroughs and achievements in the new type of industrialization, and lay a strong material and technological foundation for the Chinese-style modernization.

Industry plays the role of “ballast stone” in stabilizing the macro-economic market. At present, China’s industrial economy shows a good trend of recovery. In the first 11 months of last year, the added value of industrial enterprises above designated size increased by 4.3% year-on-year, 0.7 percentage points higher than that in 2022, especially since August, the growth rate has accelerated month by month. This year, we will continue to make every effort to promote the steady growth of the industrial economy and hit a combination of policies. We will thoroughly implement the work plan for maintaining steady growth in ten key industries, and support large industrial provinces and key provinces and cities in continuing to take the lead. We will consolidate and enhance the role of key regions such as the Beijing-Tianjin-Hebei region, the Yangtze River Delta, Guangdong, Hong Kong and Macao as sources of power and poles of growth, and guide central cities and key city clusters to highlight their distinctive strengths and achieve differentiated development. We will promote the coordinated efforts of the “troika” of consumption, investment and export, boost large-scale consumption of new energy vehicles and electronic products, and explore and cultivate new consumption growth areas such as smart homes and domestic “fashion goods”. We will accelerate the implementation of major projects under the 14th Five-Year Plan, support enterprises in technological upgrading, and expand effective investment in the manufacturing sector. We will consolidate and improve the advantages of the “new three types” of exports, stabilize and expand exports of industrial products, and create more new growth points for exports.

We will accelerate the release of new growth drivers and promote industrial innovation through scientific and technological innovation

Reporter: In recent years, China’s industrial scientific and technological innovation ability has been significantly enhanced, in what aspects? How will the next step continue to promote industrial innovation with scientific and technological innovation?

Jin Zhuanglong:

Industry is the main battlefield of technological innovation, and it is the field where innovation activities are the most active, innovation achievements are the most abundant, innovation applications are the most concentrated, and innovation spillovers are the strongest. In recent years, China’s industrial scientific and technological innovation ability has been enhanced significantly. In 2022, China will become the world’s second largest R&D investment country, and more than 570 industrial enterprises will be listed as the top 2,500 global R&D investment, accounting for nearly 1/4. The number of invention patent applications from industrial enterprises in China increased from 176,000 in 2012 to 555,000 in 2022. The country has built 27 national manufacturing innovation centers, two national and local manufacturing innovation centers, and 260 provincial manufacturing innovation centers, and the innovation ecology of networked manufacturing has basically taken shape. The 23 national independent innovation demonstration zones and 178 national high-tech industrial development zones have become important forces leading industrial technological innovation and the development of high-tech industries. A number of major landmark achievements have been made in 5G, manned spaceflight, large aircraft, large cruise ships, and high-end medical equipment, and the ability to support key materials has been greatly improved, strongly supporting the implementation of major national strategies and the construction of a strong quality, space, transportation, cyber, and digital China.

Industrial technological innovation is the fundamental driving force for new industrialization. We will fully implement the deployment of the Central Economic Work Conference, focus on promoting industrial innovation through scientific and technological innovation, and continue to make efforts in technology, enterprises, platforms, services, and parks. We will accelerate the construction of an industrial scientific and technological innovation system that is demand-oriented, application-driven, enterprise-oriented, and organically integrated with government, industry, universities, research and finance, and vigorously promote the deep integration of scientific and technological innovation and industrial innovation. First, we will fully implement high-quality development actions for key industrial chains in the manufacturing industry, further promote industrial base reconstruction projects and major technology and equipment research projects, strengthen quality support and standard guidance, and continue to improve the resilience and safety of industrial chains and supply chains. Second, we will strengthen the dominant position of enterprises in scientific and technological innovation, and further strengthen all kinds of innovation entities, such as leading scientific and technological enterprises, high-tech enterprises, individual champion enterprises in manufacturing, and small and medium-sized enterprises in science and technology and innovation. Third, we will continue to optimize the network of innovation platforms, build another 5-10 national manufacturing innovation centers in key areas, and build a number of test and verification platforms and pilot platforms in key areas such as key materials and major equipment. The fourth is to strengthen the support of scientific and technological innovation services, implement manufacturing quality excellence projects and new industry standardization pilot projects, improve the development policy of science and technology service industry, create an upgraded version of the “Torch” brand, and cultivate professional market-oriented international science and technology intermediary organizations. Fifth, we will give better play to the role of various industrial parks, improve the quality and efficiency of national high-tech development zones, give full play to the role of national innovation demonstration zones, build world-leading science and technology parks and innovation hubs, start the creation of national demonstration zones for new industrialization, and foster world-class advanced manufacturing clusters.

We will accelerate the development of a modern industrial system and promote the optimization and upgrading of the industrial system

Reporter: Accelerating the construction of a modern industrial system with advanced manufacturing as the backbone is an inevitable requirement for building a new development pattern and promoting high-quality development. In the next step, how will the Ministry of Industry and Information Technology implement key tasks?

Jin Zhuanglong:

We must unswervingly strengthen, improve and expand the manufacturing industry, comprehensively upgrade the industrial foundation and modernize the industrial chain, accelerate the upgrading and development of the industrial system, and build a modern industrial system with advanced manufacturing as the backbone. We must focus on four tasks.

First, we will accelerate the transformation and upgrading of traditional industries. China’s traditional industry has a large volume, accounting for more than 80% in the manufacturing industry, which is the basic plate for China to maintain the position of the world’s first manufacturing country. We will give greater importance to transforming and upgrading traditional industries, accelerate the high-end, intelligent and green development of traditional industries, and enable old trees to grow new buds. We will increase financial support for technological upgrading of manufacturing enterprises, implement preferential tax treatment and special re-lending policies, improve standards for technological upgrading of enterprises, strengthen regulations and systems, and promote equipment upgrading, process upgrading, management innovation, and digital empowerment. We will carry out technological upgrading projects in the manufacturing sector, focusing on key industries such as steel, nonferrous metals, and light industry, and make extensive use of digital technology and green technology to promote large-scale technological upgrading and equipment upgrading. In-depth implementation of the “increase variety, improve quality, create brands” action, accelerate the development of green, smart, innovative products. We will promote the orderly transfer of industries both at home and abroad, continue to coordinate activities for industrial transfer and development, and support the central and western regions in improving their capacity to undertake industrial transfer.

Second, consolidate and improve the leading position of advantageous industries. At present, China’s rail transit equipment, Marine and Marine engineering equipment, new energy vehicles, photovoltaic, communication equipment, power batteries, rare earth and other industries are running and even leading the position, which is an important symbol of China’s manufacturing industry to move up the global value chain, we must consolidate this advantage and make good use of it. We should speed up efforts to strengthen and strengthen chains, expand scale and enhance technological advantages, promote the connection between upstream and downstream supply and demand for coordinated development, and enhance the competitiveness of the entire industrial chain. It is necessary to enhance the supply capacity of high-end products, and promote the high-end application of rare earth in aerospace, electronic information, new energy and other fields. It is necessary to strengthen the innovation and iteration of new technologies and new products, pay close attention to the disruptive changes caused by new technological breakthroughs, identify risk points, and optimize and adjust development strategies in a timely manner. In response to the risk of overcapacity in some areas, it is necessary to strengthen normative guidance and quality supervision, improve industrial concentration, and promote the development of industrial clusters.

Third, we will actively foster emerging industries and industries of the future. At present, China’s strategic emerging industries account for about 13% of GDP. We need to coordinate technological innovation, large-scale development and application scenarios, actively develop new quality productivity, and strive to seize the commanding heights of global industrial competition. To cultivate more new pillars and new tracks. Make good use of the large domestic market and diversified application scenarios, develop and strengthen emerging industries such as new energy, new materials, and intelligent connected vehicles, promote the large-scale application of Beidou in the field of communications and mass consumption, and actively cultivate new growth points such as bio-manufacturing, commercial aerospace, and low-altitude economy. We must look forward to the layout of future industries. Formulate and implement policy documents to foster future industries, promote the research and development and application of cutting-edge technologies such as artificial intelligence, humanoid robots, meta-universe, next generation Internet, 6G, quantum information, deep sea, space and space development, and build new advantages for future development.

Fourth, promote new industrialization enabled by artificial intelligence. Artificial intelligence is a strategic technology leading a new round of scientific and technological revolution and industrial change, and has emerged in the fields of research and development, design, production and manufacturing, becoming an important driving force for new industrialization. We will vigorously promote digital industrialization, develop and expand core industries of the digital economy, and consolidate technological foundations such as computing power, algorithms, models, and data. Adhere to the overall promotion of “construction, use and research”, improve digital infrastructure and service systems such as 5G, computing power and industrial Internet, and accelerate the construction of 5G factories. We will accelerate the digital transformation of the manufacturing industry, carry out special actions for the digital empowerment of small and medium-sized enterprises, and effectively solve the problems of small and medium-sized enterprises that are unwilling, afraid, and unwilling to make changes. One focus of large model technology is the application in the field of production, to the deep integration of artificial intelligence and manufacturing industry as the main line, intelligent manufacturing as the main direction, scene application as the traction, overall layout of general large model and vertical field special model, from both ends of the supply and demand to create an innovation ecology, a high level of enabling new industrialization. We will deepen the implementation of smart manufacturing projects, and vigorously develop smart products and equipment, smart factories, and smart supply chains.