Difficulties We are about to lose the Chinese manufacturing industry?

Difficulties We are about to lose the Chinese manufacturing industry?

During this year and the 13th five-year period, the Chinese economy faces many challenges and opportunities. How should we face it? In response to the ten hot topics of the current Chinese economy, the reporters of the two associations exclusively interviewed deputies to the National People's Congress, members of the Chinese People's Political Consultative Conference, and numerous experts and scholars to gather their suggestions on hot issues in China's economy and jointly sing the bright side of the Chinese economy.

In his government work report, Prime Minister Li Keqiang stated: From the domestic perspective, the long-term accumulation of contradictions and risks is further manifested. The shift in economic growth, the pain of structural adjustments, the transformation of old and new kinetic energy are intertwined, and the downward pressure on the economy is increasing. But difficulties and challenges are not terrible. China’s development has always been advancing in response to challenges, and there has been no hurdles. “How can supply-side reforms actually be implemented?”, “Green and development, how can we get both fish and bear's paws?” and “How does China overtake the trap of middle-income countries?”

Is China's manufacturing competitiveness still competitive?

The manufacturing industry, which was once the world’s largest producer of production, has been increasingly questioned and criticized. On the one hand, serious overcapacity in the steel, coal, non-ferrous, glass, and other industries, on the one hand, high-end products in the above industries rely heavily on imports, and even ballpoint refills cannot be produced.

What happened to China's manufacturing industry? Is China's manufacturing industry competitive? Where is the future of China's manufacturing industry? Since ancient times, “no agricultural instability, no workless rich”, the development of manufacturing is related to the future of China's economy. In response, the reporter interviewed a number of political, business, and academics.

"We will not lose manufacturing."

“China will experience some pains during the structural adjustment process. For example, in the Pearl River Delta, many traditional manufacturing industries have moved to Southeast Asia, but we will not lose the manufacturing industry.” Jia Jian, member of the National Committee of the Chinese People's Political Consultative Conference and China Academy of New Supply Economics Told reporters.

Cao Dewang, member of the National Committee of the Chinese People's Political Consultative Conference and chairman of Fuyao Glass Group, pointed out that the competitiveness of China's manufacturing industry has been rising, but only at a fast pace.

"The early development of China's manufacturing industry depends largely on demographic dividends and opportunities. Now that the cost of labor has risen, and neighboring countries have grown, extensive and labor-intensive manufacturing industries have indeed been affected, but our development potential is very high. "Chen Hongsheng, member of the National Committee of the Chinese People's Political Consultative Conference and former chairman of the Poly Group, said.

Jia Kang believes that China's implementation of the "Made in China 2025" strategy is to promote it into a portfolio through specific policies, and to upgrade the industry through restructuring. "Adjustment, not allowing the government to interfere too much"

In fact, in the draft of the “Thirteenth Five-Year Plan”, the implementation of the strategy of building a powerful nation involved six adjustments, including comprehensively upgrading industrial basic capabilities, accelerating the development of new types of manufacturing, promoting the upgrading and upgrading of traditional industries, and strengthening quality brand building.

Regarding a series of structural adjustments in the manufacturing industry, Chen Hongsheng believed that more market decisions should be made and that the government should not interfere too much. "(Overcapacity) is over, and demand will go up. The government can't force a squeeze on an industry, but it should issue guidance and suggest which areas are surplus, and should not invest blindly. Which areas are needed for the future, companies can consider investment."

According to Hua Qingshan, member of the National Committee of the Chinese People's Political Consultative Conference and former supervisor of the Bank of Communications, all localities should formulate policies according to their own characteristics. Take Shanghai as an example. Shanghai has established a center for advanced manufacturing, including a series of advanced manufacturing industries such as nuclear power.

For manufacturing companies, competitiveness needs more branding and innovation. Li Dongsheng, deputy to the National People's Congress and chairman of the TCL Group, said that the number of patents for Chinese manufacturing companies has been catching up, but the global brand and channel capabilities are still a big 'shortcomings'. To build overseas factories, engage in research and development, and create an international management team are the only roads for China's manufacturing industry.

Debt-to-equity swap to open a financial prescription for structural adjustment

How to make the manufacturing enterprises smoothly achieve transformation and upgrading? Li Dongsheng believes that in addition to corporate innovation, the government needs to reduce taxes for manufacturing companies and reduce costs.

Mei Xingbao, member of the National Committee of the Chinese People's Political Consultative Conference and former president of Orient Asset Management, told the reporter that from the perspective of financial institutions, the excess production capacity of the manufacturing industry corresponds to the bank’s debt, and financial institutions should cooperate to consider strengthening the write-off of non-performing assets and reduce the burden on enterprises. , mainly to guide and support the advantages of mergers and acquisitions, restructuring. In addition to financial institutions, local governments should give enterprises more autonomy in terms of registration and taxation, and retain excellent teams.

In addition, in times of economic difficulties, some bonds can be converted into equity. This is the best way to help companies overcome their difficulties. When the economy improves, the equity will be withdrawn again. At the same time, the assessment method should not adopt traditional book-to-book conversion, but should guide international intermediary agencies to evaluate it, and then the board of directors and the shareholders' meeting will consider it.

In fact, "Internet +" and "double creation" have already brought new bright spots to China's manufacturing industry, and its scope has gradually expanded. This happened not only in the more developed eastern regions, but also in the inland provinces. Liang Jing, a member of the National Committee of the Chinese People's Political Consultative Conference and Vice Chairman of the Henan Provincial People's Political Consultative Conference, told reporters that in 2015 many new businesses in Henan showed double-digit growth, including small-scale manufacturing companies combined with the Internet, and new material companies related to mobile phones and computers. There are also some enterprises that have traditionally transformed “Internet+” manufacturing.

Guan Fei, member of the National Committee of the Chinese People's Political Consultative Conference and chairman of the Jinxiu Group, believes that after this round of adjustments, the international competitiveness of China's manufacturing industry will only become stronger and stronger. (Source: China Network)

Difficulties We are about to lose the Chinese manufacturing industry?