Wang Ruixiang: Growth speeds down the imminent transformation of the machinery industry

Abandoning the “guaranteeing eight,” the Chinese government decided not to entanglement with the symbolic figure of 8% of GDP growth.

Premier Wen Jiabao’s government work report on March 5 proposed that the 2012 GDP growth rate would be reduced to 7.5%. This is the first time that our country’s gross domestic product (GDP) growth target is below 8% for the first time in eight years. Let the world's capital markets, which have become accustomed to the rapid growth of China's economy, have been "surprised". Asia-Pacific stocks ended lower, European and US stock markets opened lower, and international oil prices fell.

Wang Ruixiang, deputy director of the National Committee of the Chinese People's Political Consultative Conference and chairman of the China National Machinery Industry Federation, said in an interview on March 6th that this was a scientific decision made after the central government analyzed it calmly. 7.5% of the proposals are more positive. In particular, from the perspective of the industry, we must seize the opportunities for development and appropriately control the growth rate of development. We must focus on adjusting the structure, changing the mode, and transforming and upgrading, and truly develop a quality and efficiency model. The road depends on endogenous growth and innovation to drive the development of the machinery industry.

7.5% of "positive factors"

Wang Ruixiang said that 7.5%, to slightly lower the growth target, is to moderately slow the pace of economic growth, but not to pursue speed and total, and shift the mode of economic growth to focus on development quality and development efficiency. 7.5% also left room for a good market environment for structural adjustment, accelerating the transformation of development methods, transformation and upgrading of traditional industries, and embarking on the road to scientific development. Now we will slow down the growth rate and concentrate on resolving the legacy problems that existed in the past.

Wang Ruixiang said that 7.5% is put forward after integrating various factors. It is practical and feasible, and it is also beneficial to the overall situation. The significance of this goal is to send a strong signal. To face up to the difficulties and challenges that we now face, we must see that we are facing the challenges posed by the international and domestic economic environment and we must accelerate the pace of structural adjustment and the transformation of development methods.

"7.5% have some impact on the industry. The overall growth rate will slow down and the investment scale will inevitably slow down. Some industrial restructuring will also reflect on the total market demand for equipment and the market demand will decrease. It has an impact on the development of the equipment manufacturing industry. But overall, I think there are many positive factors," said Wang Ruixiang.

Wang Ruixiang believes that China's economic development is still in a period of strategic opportunities, and China's traditional advantages still exist. The market prospects are also promising. The most important thing is that the advancement of industrialization and urbanization has provided huge market demand for development. In addition, the industrial scale, manufacturing capacity, and supporting products that have been formed in China for many years have not only been at home but also have a certain degree of competitiveness internationally.

According to the actual development of the machinery industry, although the growth rate in 2012 was reduced to 7.5%, considering various factors, Wang Ruixiang judged that the industry's annual gross industrial output value and main business revenue growth rate was about 18%, and the profit growth was about 12%. The growth rate of export foreign exchange is about 15%, and the goal of achieving a profit of about 7.5% of main business income should be achieved.

Faced with the pressure of pre-resistance, the government’s report on the post-repression system mentioned many adjustments to the industrial structure, optimization and upgrading, and in particular mentioning “strengthening the development of high-end equipment manufacturing”, Wang Ruixiang felt “very encouraged.”

Wang Ruixiang said that the development of high-end equipment manufacturing has become a national will. The machinery industry should follow the leading principle of “replacement, replacement, and high-end substitution” and focus on intelligence and cleanliness to promote product structure adjustment. By accelerating the organic integration of emerging technologies and traditional industries, we will increase the technological level of key basic components and basic equipment. Cultivate and develop a group of high-end equipment, promote independent innovation of major technical equipment, and increase the proportion of new product output value. Gradually, a high-end equipment manufacturing industry led by high technology will be formed, and it will be at the high end of the value chain and the core link of the industrial chain, and will enhance the core competitiveness of the entire industry.

However, in Ruixiang Wang's view, at present, China has become a major machine manufacturing country in the world, but China's international market to remove processing trade, can only rank fourth in the United States, Japan and Germany. The machinery industry has not yet formed a group of large enterprises and enterprise groups that have large market share and international competitiveness, and has not yet formed a large number of professional and coordinated supporting factories. The machinery industry has so far not had a brand name that can be called loudly. With low industrial concentration, low degree of specialization, and lack of branded products, these issues must be placed on the height of the industry's development strategy to attach importance to, and vigorously promote the work of transformation and upgrading.

At present, the developed countries represented by the United States have implemented the "reindustrialization" strategy, which poses a severe challenge to the prospects of upgrading the industry to the high end. The development of emerging industries around the world has entered a period of accelerated growth, and new technologies such as information networks, biology, and renewable energy are brewing new breakthroughs. The rapid development of high technologies such as artificial intelligence, robotics, and digital manufacturing will reshape the new competitive landscape of international manufacturing. Advanced economies such as the United States, the European Union and Japan have upgraded their scientific and technological innovations and the development of emerging industries into national strategies. They have introduced "re-industrialization" strategic plans that accelerate the development of emerging industries and the implementation of advanced manufacturing as the core, stepping up efforts in the emerging technology fields. We will carry out forward-looking plans, increase support through government subsidies and tax reductions, and seize the commanding heights of future technology and industrial development.

In addition, emerging economies and developing countries such as Brazil, India, and Russia have also issued plans for future science and technology and industry development, accelerated the development of industries and technologies with comparative advantages, and implemented preferential policies to undertake the transfer of manufacturing industries from advanced developed countries to China. Formed after the resistance to chase after the pressure.

"If we lack the sense of sensitivity and crisis that we should, we should respond improperly, delay the timing, and not achieve industrial upgrading as soon as possible. We will not be able to change the existing passive situation that is large but not strong, and it will also increase the gap between our country and the developed countries. Gap, and may be left behind in some developing countries." Wang Ruixiang said.

Three transformations and three enhancements Wang Ruixiang emphasized in particular that the realization of transformation and upgrading is the key to breaking through the bottleneck of the machinery industry and the inevitable requirement for achieving leapfrog development.

Transformation is to change the mode of industrial development, from the whole machine to drive the development of parts and components to the overall development of the machine and parts; the shift from relying mainly on physical production to rely on physical production and manufacturing services to pull the synergy; mainly by increasing the consumption of material resources, Extensive management mainly depends on scientific and technological progress, management innovation, and improvement in the quality of laborers (hereinafter referred to as “three transformations”). Traditional industries accelerate the transition to innovative, green, low-carbon, smart manufacturing, service, and domestic demand-driven, and take a new approach. Industrialization road.

The upgrade is to fully optimize the industrial structure, technical structure, product structure, organizational structure, and process structure, and promote the overall optimization and promotion of the industrial structure. Improve industrial technology level, improve product quality, increase economic added value (hereinafter referred to as “three increase”), and build a modern industrial system with optimized structure, advanced technology, clean and safe, high added value, and strong core competitiveness. The entire industry must focus on the transformation and upgrading of the three transitions and the three enhancements, and strive to achieve substantial results, laying a solid foundation for the construction of a powerful machinery manufacturing country.

Finally, Wang Ruixiang said, “Accelerating the pace of transformation and upgrading, improving the quality and level of development of the machinery industry as soon as possible, and achieving the three transitions and the three improvements as soon as possible are imminent and urgent.”