Why is maintaining industrial security a top priority in the industrial chain | industry | security
The first meeting of the 20th Central Committee of Finance and Economics, recently held, pointed out that "we must improve industrial policies in the new development stage and make maintaining industrial security a top priority.".We need to have a deep understanding and recognition of this, and actively take measures to optimize and stabilize the industrial and supply chains.
Economic security is an important foundation of national security. Only by ensuring economic security can we provide a sustainable, stable, and reliable material foundation for social development. Industrial security is closely related to the national economy and people's livelihood. It can provide important support for economic security and is an important reflection of the quality of a country's economic development. Currently, the world is experiencing unprecedented changes, with protectionism and unilateralism prevalent in some countries. Global macroeconomic governance is facing uncertainty, which has a significant impact on global industrial and supply chains. The development of digital manufacturing technology has reshaped traditional manufacturing production methods while also changing the comparative advantages of different countries in participating in international division of labor. The decrease in the importance of labor costs has begun to cause some manufacturing industries to flow back to developed countries. All of these pose challenges to China's industrial security.
With the development of global production networks and trade systems, modern economic activities have formed extremely complex and nested global research and development, production, supply, and trade networks. In an interdependent global economic system, achieving domestic industrial security requires strong industrial control capabilities. To strengthen industrial control and improve a country's industrial security level, it is necessary to systematically optimize the industrial chain, supply chain, and value chain, and form a joint force to ensure industrial security.
Although industrial chains, supply chains, and value chains are all reflected in global networks, their emphasis is different. Generally speaking, the industrial chain emphasizes the level of division of labor and production capacity, the supply chain emphasizes the degree of connectivity in the economic cycle process, and the value chain emphasizes the added value differences in the global trading system. The industrial chain, supply chain, and value chain reflect the comprehensive position of open economies in the global economy from different perspectives. From the perspective of the industrial chain, a long industrial chain means that a country's economy can breed more diverse industries, and it also means strong production and supply capabilities. However, it does not mean that the industrial chain is strong, let alone high security and autonomy of the industrial chain. From the perspective of the supply chain, the completeness, stability, and timely response speed of the supply chain not only ensure the recyclability and sustainability of enterprise economic activities at the micro level, but also lay the foundation for efficiency improvement. From the perspective of the value chain, if a country's industry can be at the high-end of the value chain, it can grasp the key nodes of the industry chain, win the initiative in the global layout of the industry chain, and then grasp the layout of the supply chain.
Starting from the goal of enhancing industrial security, the optimization of the industrial chain should focus on the construction of key industrial nodes and technological ecosystems, and strengthen the resilience of the industrial chain. In the globalized division of labor system, ensuring and enhancing industrial security is not achieved through the full chain localization of the industrial chain, but through the formation of joint forces at several important nodes of the industry, improving the independent innovation ability of the industry, and forming technological countermeasures. In terms of improving supply chain security, different strategies should be adopted for different products. At present, China's primary products and some high-tech products still have a relatively high degree of external dependence. For the supply of primary products, the focus is on optimizing the supply chain structure and forming diverse supply sources. For high-tech products, we must firmly follow the path of independent innovation and resolve the risk of supply interruption. It should also be noted that developed countries currently dominate the global value chain and occupy high value-added links, mainly through intellectual property, key equipment and technology, relying on high-end productive service industries to achieve this. We need to enhance the position of the value chain, not only by expanding into high value-added links, but also by leveraging the advantages of existing industrial and supply chains, promoting industrial collaboration, and helping to move towards the high-end of the value chain.
Overall, based on the characteristics and development trends of the industrial chain, supply chain, and value chain, it is urgent to reassess the current situation of industrial security in China, and on this basis, systematically optimize the industrial chain, supply chain, and enhance the level of the value chain to ensure industrial security in China.
