Accelerating the Construction of Modern Industrial System (Mid year Economic Observation) Global | World | Economy

In one minute, 5 new energy vehicles were taken offline in the Yangtze River Delta region, 110 flexible display screens were produced in Chengdu, and 45 refrigerators, 50 washing machines, and 64 air conditioners were produced in Hefei; 360 tons of goods are transported through Yangluo Port in Wuhan to 38 countries

Currently, China has the largest and most comprehensive manufacturing system in the world, with over 220 types of industrial products ranking first in the world. The proportion of added value of manufacturing in the global manufacturing industry has been ranked first in the world for 13 consecutive years.

General Secretary Xi Jinping pointed out: "The modern industrial system is the material and technological foundation of a modern country, and the focus of economic development must be placed on the real economy to provide strong material support for the realization of the second centenary goal."

Various regions and departments are vigorously promoting the supply chain of weak industries, the extension of advantageous industries, the upgrading of traditional industries, and the construction of emerging industries. A modern industrial system that is independent, controllable, safe, reliable, and highly competitive has made new progress. In the first half of this year, the added value of industrial enterprises above designated size in China increased by 3.8% year-on-year, an increase of 0.8 percentage points compared to the first quarter. The industrial economy has recovered and continued to improve.

Policy support, a new path for the construction of a modern industrial system

The "Computing Power Network and Security Trusted Computing Laboratory" in Tianjin Binhai New Area has been officially unveiled, providing new support for the development of the regional digital economy.

The Songshan Lake Science City in Dongguan, Guangdong has completed over 1000 research projects on the pulse type spallation neutron source large scientific device, assisting in the research and development of new materials and products such as "super steel" and high-speed rail wheels.

Adhere to prioritizing the real economy and pave a new path for the construction of a modern industrial system.

——Strengthen policy coordination and form a new synergy in system construction.

Entering Anhui Zhici New Material Technology Co., Ltd. located in Fuyang City, Anhui Province, the vast equipment continuously spits out "thin as cicada wings" of nanocrystalline soft magnetic materials. The components made from it have excellent performance and are widely used in fields such as new energy vehicles and rail transit.

"All of this is thanks to the government's' nanny style 'service," said Deng Bili, the company's head. Fuyang City not only helps to build factories and solve labor needs, but also provides financing guarantees. "The initial 10 million yuan science and technology innovation loan has eased the financial pressure on enterprises."

Shanghai optimizes the mechanism of "market leadership, unveiling and leading", and strives to win the battle of modernizing the industrial chain; Guangdong implements a special action to strive for the proportion of added value in the manufacturing industry to increase to over 35% by 2027; Anhui Innovative Technology Enterprise Financing Mechanism, Creating a Forest of "Early Investment and Small Investment in Technology" Funds... In the first half of the year, China's industrial investment maintained expansion, with a year-on-year growth of 8.9%; The investment in high-tech manufacturing and high-tech service industries increased by 11.8% and 13.9% respectively, and the foundation for industrial development continued to be consolidated.

——Focus on breaking through checkpoints and resolutely win the technical battle.

120 inches, 33 million pixels, and achieving 110% ultra wide color gamut... Recently, Hisense launched the world's first 8K laser TV, enhancing the color performance of smart TVs to 2 to 3 times that of traditional TVs.

"When developing an 8K laser TV three years ago, there was no solution for display chips, ultra short focus lenses, or laser light sources," said Liu Xianrong, Chief Scientist of Hisense Laser Display. As a result, Hisense established an innovation alliance with upstream partners to overcome difficulties one by one and finally conquered the technological highland of the 8K laser display technology in the laser display industry. In the first half of the year, Hisense Video's net profit attributable to its parent company is expected to increase by over 72.16% year-on-year.

The C919 large passenger aircraft was put into commercial operation, and the first domestically produced large cruise ship was successfully docked... In the first half of the year, various industries focused on strengthening technological research in key areas and key links, and related production grew rapidly. The added value of semiconductor device specific equipment manufacturing, electronic components and electromechanical assembly equipment manufacturing increased by 30.9% and 46.5% year-on-year, respectively.

——Build first-class enterprises and cultivate the main force of the industrial system.

The scorching sun is scorching, and construction is in full swing. Arriving at the construction site of BOE's sixth generation new semiconductor display device production line in Beijing Economic and Technological Development Zone, the construction is in full swing. This new line has a total investment of 29 billion yuan and is expected to achieve mass production by 2025, which will promote the leapfrog development of low-temperature polycrystalline oxide display technology in China.

"Since its establishment 30 years ago, BOE has led China's display industry to achieve breakthroughs from 0 to 1. In 2022, it applied for 1884 patents, ranking among the top ten in the world in PCT international patent rankings for the seventh consecutive year." BOE Chairman Chen Yanshun said that this year, BOE has launched multiple global debut technology new products, including 17 inch curly laptops and 16K ultra high definition 110 inch displays. According to data from market research institutions, in the first half of the year, BOE's overall shipment volume in the LCD display screen field and five major sub application areas remained the top in the world.

A first-class enterprise is a key force in leading industrial development and technological innovation. In 2022, the number of industrial enterprises above designated size in China reached 450000, an increase of over 30% compared to 2012. Leading backbone enterprises stood firm, specialized and innovative small and medium-sized enterprises were overwhelming, and a group of "singles champions" and "supporting experts" stood out. In the first half of the year, the operating revenue and profit growth of specialized, refined, and innovative enterprises in China were higher than those of industrial enterprises above designated size.

The relevant person in charge of the Ministry of Industry and Information Technology stated that the next step will be to deeply implement the high-quality enterprise gradient cultivation project, support enterprises to become stronger and better, and create a group of world-class enterprises with "excellent products, outstanding brands, leading innovation, and modern governance".

Grow strong and showcase a new look in the construction of a modern industrial system

On the banks of the Haihe River, the World Economic Forum has released a new list of "lighthouse factories", with China's "lighthouse factories" increasing to 50, ranking first in the world;

On the land of Lingnan, with a pure electric vehicle slowly driving off the production line, China's cumulative production of new energy vehicles has exceeded 20 million.

The optimization and upgrading of China's industrial structure continues to advance with solid steps, and new progress has been made in intelligence, greenness, and integration.

——Intelligent upgrading, seizing the strategic high ground of the global industrial system.

The intelligent system automatically determines the tightening results of 408 bolts and realizes data traceability of one vehicle and one gear; 200 personalized customized new cars have corresponding testing and marketing tasks before they are taken offline... Walking into the final assembly workshop of Mengshi Technology Smart Industrial Park located in Caidian District, Wuhan, Hubei, Mengshi 917 pure electric off-road vehicles with different configurations and colors are being assembled.

"The intelligent factory will be officially put into operation next month and can achieve 100% customized production." Cao Dongjie, General Manager of Mengshi Automotive Technology Company, said that digital technology will connect the five major orders of users, scheduling, parts, delivery, and warehousing inventory, improving supply chain logistics efficiency by 30%. Order users can not only see the stock and production status of their vehicle's parts on the mobile app, but also change the body color online.

One by one, factories, workshops, and mining sites are accelerating their transition from "manufacturing" to "intelligent manufacturing". China's development of intelligent manufacturing has entered a new stage of "point to surface, chain to circle" system promotion and deepening application. As of now, the CNC rate of key processes and the popularization rate of digital R&D design tools in industrial enterprises across the country have reached 60.1% and 78.3%, respectively. Nearly 8000 digital workshops and intelligent factories have been built, of which more than 2500 have reached the level of maturity of intelligent manufacturing capabilities at level 2 or above. 209 have become intelligent manufacturing demonstration factories with international advanced levels. The average product R&D cycle of these demonstration factories has been shortened by 20.7%, and the average production efficiency has increased by 34.8%.

——Green transformation, striving to achieve green, low-carbon, and circular development.

100% Green Electricity Production! In February this year, China Jushi built a zero carbon intelligent manufacturing base in Lianshui County, Huai'an, Jiangsu Province, which can produce 400000 tons of high-performance fiberglass annually.

"The company has installed photovoltaic panels on the roof, generating green electricity that can supply 53000 households with electricity for one year." Shen Guoming, General Manager of China Jushi Investment Strategy Department, said that as a national level "green factory", the company implements the zero carbon development concept throughout its entire life cycle, with a water resource recycling rate of 98% and an exhaust gas emission treatment efficiency of about 100%.

At present, China has established 45 national advanced manufacturing clusters in the fields of new generation information technology, high-end equipment, new materials, new energy, etc., with a total output value of 20 trillion yuan in the leading industries.

The green transformation of industrial economy has shown remarkable results. In the first half of the year, the cumulative production of photovoltaic cells and lithium-ion power batteries increased by 54.5% and 46.4% year-on-year, respectively. In the first five months, a total of 115000 tons of waste power batteries were recycled and reused.

——Integrated development, focusing on improving the overall efficiency of the industrial system.

A 7-story mechanical three-dimensional parking building with 1000 planned parking spaces is about to rise in the Liangjiang New Area of Chongqing. Driving into any of the 12 garage entrances and exits, the mechanical parking system will assist in completing vehicle storage.

"We have become a professional mechanical three-dimensional parking equipment system solution integration enterprise that integrates research and development, manufacturing, installation, and after-sales service." Gu Xiaofeng, Deputy General Manager of Xizi Intelligent Parking, said that the company's independently developed remote operation and technical support systems such as the "AOS" eagle eye system have further strengthened its digital service-oriented capabilities.

Service oriented manufacturing is an important field for the integrated development of industries. In the first half of the year, service-oriented manufacturing showed a strong development momentum, with innovative models constantly emerging, and the service revenue of service-oriented manufacturing demonstration enterprises continued to rise.

Taking multiple measures simultaneously, carrying out the relay work of modern industrial system construction

Accelerating the construction of a modern industrial system is a complex and arduous long-term systematic project that cannot be achieved overnight. It requires systematic policies and long-term efforts, with one blueprint drawn to the end and one work after another.

——Efforts should be made to maintain integrity, enhance supporting capabilities, and maintain the advantage of a complete industrial system.

In the Ningde Power Battery Cluster in Fujian, projects have been implemented in all aspects, including materials, processes, equipment, battery cells, modules, battery packs, battery management systems, etc., achieving a full industry chain technological layout.

At present, the 70000 ton lithium-ion battery cathode material project of Ningdesha Tungsten New Energy Materials Co., Ltd. is being urgently constructed. "After the project is put into operation next year, it will produce high nickel ternary materials that are comparable to the world's advanced level, to assist in the research and development of new power batteries," said Wu Hailang, manager of the enterprise management department.

Relying on the world's most complete and largest power battery industry system, China's cumulative production of power batteries reached 293.6 gigawatt hours in the first half of the year, a year-on-year increase of 36.8%; The cumulative installed capacity is 152.1 GWh, a year-on-year increase of 38.1%; Accumulated exports reached 56.7 GWh.

"We need to leverage our advantages in the ultra large scale market and ultra deep space, maintain and develop a complete industrial system, transform and upgrade traditional industries, consolidate and extend advantageous industries, cultivate and expand emerging industries, proactively layout future industries, guide rational and orderly gradient transfer of industries, and enhance the rootedness of the manufacturing industry," said the relevant person in charge of the Ministry of Industry and Information Technology.

——Strive for progressiveness, efficiently gather global innovation elements, and independently expand new industrial tracks.

On June 15th, the "Ningdong" hydrogen powered locomotive was taken offline in Datong, Shanxi. It is the world's largest hydrogen fuel cell installed power hydrogen powered locomotive. The locomotive is equipped with an 800 kW hydrogen fuel cell system and a 270 kg hydrogen storage capacity, with a range of 190 hours per refueling.

"In the global context of 'dual carbon', the clean and low-carbon transformation of old diesel locomotives powered by diesel is on the way." Liang Zhenzhong, Deputy General Manager and Chief Engineer of CRRC Datong Company, said that CRRC has laid out hydrogen energy ahead of schedule, established a technical cooperation alliance, and done a good job in the research and development of hydrogen powered locomotives.

The relevant person in charge of the Ministry of Industry and Information Technology said that to enhance progressiveness is to comply with the major trend of a new round of scientific and technological revolution and industrial change, improve the industrial scientific and technological innovation system, vigorously develop intelligent manufacturing and green manufacturing, constantly expand the supply of high-quality products and services, and enhance the core competitiveness of the industry.

——Ensure security, achieve independent and controllable important industrial chains, and ensure smooth circulation of the national economy.

On April 2nd, the shield tunneling machine "China Railway 1206" equipped with domestically produced main bearings successfully completed the excavation task of Beijing Metro Line 17, once again verifying the stability and reliability of the main bearings of the domestically produced shield tunneling machine.

The main bearing is known as the "heart" of the shield machine, bearing the main load during the operation process of the shield machine, and is a key component of the cutterhead drive system. "We have taken the lead in completing the technical research and development of 6-meter main bearings, and are currently carrying out technical reserves for 8-meter main bearings, striving to connect the 'last mile' of national production of shield tunneling machines," said the person in charge of China Railway Equipment.

The relevant person in charge of the Ministry of Industry and Information Technology stated that we must adhere to the bottom line thinking, make up for shortcomings, forge strengths, and strengthen foundations to ensure the safety, stability, and smooth flow of the industrial and supply chains.