Xinhua News Agency's Mid Year Economic Research Tour | Interview Notes: Understanding the Resilience of Made in China on the Frontline | Modernization | Frontline

Xinhua News Agency, Beijing, August 19th - Interview Notes: Understanding the Resilience of Made in China on the Frontline

Xinhua News Agency reporters An Bei, Zhang Xinxin, and Zou Duowei

Manufacturing is a solid foundation for building a socialist modernized strong country.

How can Made in China break through the international turmoil? On the new journey, how to build the cornerstone of Chinese path to modernization with a modern industrial system? This summer, reporters rushed to the north and south of the Yangtze River, delving into ports, workshops, and factories. Amidst the rumbling sound of the production line, one can see the resilience of Chinese manufacturing's upward growth, and feel the power of the great country's economic progress amidst the overnight lights.

In the midsummer of July, in Qidong Marine Engineering Ship Industrial Park, Nantong, Jiangsu Province, the whistle of the trial voyage was heard all the time, and the coastline of several international high-end marine engineering equipment was spread out, and a layer of golden yellow was plated under the sun.

Five years ago, the first self-propelled cutter suction dredger in Asia, "Tiankun", independently designed and built by China, completed its first trial voyage here, and over a hundred independent innovations have become a "national treasure".

At the end of July this year, China's fully independent intellectual property rights "Haifeng 2001" 4000 ton fully rotating crane ship was officially delivered. On the basis of similar models, the lifting capacity of 3000 tons was increased for the first time from 40 meters to 45 meters, becoming a "weapon" for offshore wind power construction.

"From big to strong, no industry can easily reach it. Shipbuilding is a typical cyclical industry, but regardless of the ups and downs of the cycle, we always insist on practicing our internal skills in the upstream and downstream of the industry chain, and always insist on building ourselves and striving for self-improvement." Guo Wenjun, Chairman of Shanghai Zhenhua Heavy Industry Qidong Marine Engineering Co., Ltd., was deeply moved.

The shipbuilding industry is known as the "crown of comprehensive industries" and is the culmination of modern industry. Carrying the dream of becoming a maritime power, China's shipbuilding industry has come a long way, from simple product development to independent product development, from simple integration of global supply chains to more independent and controllable industrial chains. It is a joint development of more than 50 upstream and downstream industries. In the first half of this year, the global shipping market has cooled down, and China's three major indicators of shipbuilding completion, new orders received, and handheld orders still saw comprehensive growth, all ranking first in the world.

The turbulence of the river and sea, the "sailing of China's shipbuilding industry", reflects the arduous journey of a great country in creating storms and growth.

The Global Manufacturing Purchasing Managers Index has been below the boom bust line for 10 consecutive months, and overseas demand has continued to decline; Domestic demand needs to be further restored, and the factory prices of industrial producers in China have been negative year-on-year for 10 consecutive months. The profits of industrial enterprises have decreased, and the pressure on the industrial economy is not insignificant. But reporters conducting research and interviews in various regions have seen that under pressure, China's manufacturing industry is constantly seeking momentum, accumulating momentum, and gathering momentum, forming a hundred boats competing in the north and south of the Yangtze River.

What to do if profits fall and orders are insufficient?

In August, Cao Jun, Chairman of Zhejiang Lanhe Medical, once again embarked on a journey north. From the beginning of the year to the peak of summer, visiting suppliers one by one, Cao Jun almost traveled across half of China.

Since the beginning of this year, the slow recovery of demand has directly affected the orders and profits of this medical consumables manufacturer, and the company's sales revenue has dropped by nearly 40%. The more sluggish the market is, the more it needs to go against the current. By increasing innovation and market investment, laying out the supply chain in advance, and extending products from mask materials to antibacterial spray films and liquid wound dressings, Lanhe Medical is constantly changing its tactics to cope with market changes.

What should we do if the transformation of traditional industries is difficult?

Since the beginning of this year, the profits of industries such as steel, non-ferrous metals, and chemical industry have declined significantly. However, according to research conducted in various regions, many enterprises have seen an increase in technology investment instead of a decrease. They are striving to promote high-end, intelligent, and green development, accumulating strength for future development.

"Our clients are concentrated in industries such as chemical and steel, where profits have significantly declined. However, the budget for technological upgrades has increased significantly instead of decreasing." "Many client departments are shrinking, but they are adding digital intelligence departments and making big strides in digital upgrades." In front of reporters, Xia Jiantao, Chairman of Shanghai Quanying Science and Technology, said a few "unexpected" things. In the first half of this year, the commercial performance of this thermoelectric intelligent solution provider increased by 100%.

The industrial economy is facing difficulties, and the pressure on small and medium-sized enterprises is particularly severe. What should we do?

From casting to manufacturing to intelligent manufacturing, in Hunan Jiahe, the local government introduced the industrial Internet platform to carry out digital transformation and upgrading of the first 10 enterprises, reducing energy consumption costs by 4 million yuan annually and improving production efficiency by 10%.

Extension of preferential policies, halving of personal income tax collection for individual industrial and commercial households, and increasing efforts to clear outstanding accounts owed to small and medium-sized enterprises; Stable growth in industries such as light industry; Large enterprises "list", small and medium-sized enterprises "unveil"

In the first half of the year, industrial production steadily recovered, high-end manufacturing accumulated and developed, and new driving forces for the Chinese economy accelerated, from helping and supporting the journey, to promoting innovation and coordinated development among large, medium, and small enterprises.

Climbing steep slopes, crossing dangerous obstacles, and wading through rapids, we must adhere to the focus of economic development on the real economy. As we go on the road, we become more determined.

In October 2022, the report of the 20th National Congress of the Communist Party of China deployed the construction of a modern industrial system. On April 28, 2023, the Political Bureau of the Central Committee of the Communist Party of China proposed to accelerate the construction of a modern industrial system supported by the real economy. We should not only go against the trend, accelerate breakthroughs in weak areas, but also take advantage of the situation and expand and strengthen in advantageous areas. On May 5th, the first meeting of the 20th Central Committee of Finance and Economics discussed the issue of accelerating the construction of a modern industrial system. On July 24th, the Politburo meeting of the Central Committee of the Communist Party of China made it clear to accelerate the cultivation of strategic emerging industries and create more pillar industries

A modern country needs a modern industrial system. On the new journey, a grand layout is unfolding.

Supporting the chassis, implementing industrial foundation reconstruction projects and major technological equipment research projects, breaking through the bottleneck problem of the situation, and continuously improving industrial safety and basic skills;

Strengthen strength, promote the supplementation of weak industries, the extension of advantageous industries, the upgrading of traditional industries, and the construction of emerging industries;

Accumulate momentum, accelerate the development of advanced manufacturing clusters, cultivate strategic emerging industry clusters, adhere to the principle of national unity, and promote the transformation towards high-end, intelligent, and green industries

This summer, the 20th millionth new energy vehicle was taken offline, and China's automotive industry has been in operation for 70 years, becoming the world's largest exporter of automobiles for the first time;

This summer, the growth of foreign trade is facing tremendous pressure, but the "new three types" of products, including electric passenger cars, lithium batteries, and solar cells, have grown significantly, becoming a new engine supporting foreign trade;

This summer, the second domestically produced large aircraft C919 has been launched, and the first overseas construction project of China's high-speed railway, the Yawan High Speed Railway, which is a full system, all elements, and full industry chain, is about to open

From the establishment of the foundation of new China's industry in the "First Five Year Plan" to the construction of a modern industrial system, a truth has been repeatedly verified along the way: China must develop a real economy, and manufacturing is an important foundation of the real economy, and self-reliance is the foundation of our struggle.

Faced with enormous transformation pressure and severe external situations, we often wonder, what should enterprises use to cope with challenges? What does China's manufacturing industry rely on to move forward with the waves?

The best answer lies on the vast front line.

At a semiconductor specific equipment research and development enterprise in Liaoning, the company leader said that although there is still a gap between the products and the international advanced level, persistent research and development has gradually narrowed the gap. The domestic market has a huge scale and rich application scenarios. "We will persist in doing it, and within 3 or 5 years... we will definitely catch up.".

The operating system is the central nervous system of industrial production. Han Hui, Chairman of Beijing Yihui Information, told us that the core design of the company's main products has been in place since 2006, and the product development cycle has been nearly 20 years. With the increasing demand for self-reliance and controllability from various industries, more and more industries are opening their doors to us, and the path of innovation is becoming wider and wider. This year, Yihui Information has become one of the more than ten thousand national specialized, refined, and innovative "little giants".

"In the past decade, we have only done one thing, which is innovation." In 2013, Deng Jianbo returned from studying abroad and founded Shenzhen Mataqi Ergonomic Technology Co., Ltd. From an ergonomic mouse to an ergonomic chair, this small and medium-sized enterprise has gone through a development curve and experienced the impact of the epidemic. It has overcome the difficulties of its initial stage and gradually established itself in the fierce market competition.

In the words of frontline entrepreneurs, we understand the resilience of the Chinese economy, which has always stood firm and never collapsed.

On the continuous coastline of the Yangtze River Delta, world-class marine equipment and high-tech ship clusters have broken through and become a trend; In the Guangdong Hong Kong Macao Greater Bay Area, leading enterprises and a large number of startups have made breakthroughs in various sub sectors, and the high-end medical device industry cluster is flourishing; On the land of Fujian, power battery clusters have started from scratch, leading the world and accelerating on new tracks

From the three ends of raw materials, equipment, and market to the significant international competitive advantage in the industrial chain, Lu Chuan, Chairman and President of Chint New Energy, said that it is in the fierce market competition that China's photovoltaic industry has undergone a "ten-year transformation", forging a path of policy support, technological assistance, market-oriented development, and global layout.

As the reporter walked, they watched as companies broke through the ice and industrial highlands accelerated their rise, which is a vivid portrayal of China's steady progress towards high-quality development in manufacturing.

On this vast land, there is the confidence brought by a complete industrial system, the unique advantages of a super large-scale market, and the efforts and resilience of billions of business entities to overcome difficulties. This is the reason why Made in China wins the market and takes the initiative.