Manufacturing Industry: The "Three Insistence" Pition Period

In 2016, journalists visited many major industrial provinces, such as Guangdong, Shandong, Shaanxi, Zhejiang, and other major industrial provinces.

At present, it is still in the "bottoming up" process. The pressure on both sides of the supply and demand is very significant. The formation of endogenous growth momentum still needs to replace the old with the old and change the space with time.

But most enterprises firmly believe that China's manufacturing industry still has great potential for development and occupies a pivotal position in the global manufacturing layout, and is still a strong pillar of China's economy.

Looking forward to the future, relevant enterprises responsible persons and experts said in an interview with reporters that along with the acceleration of the strategy of "China made 2025", "Internet plus" action plan, and the continuous introduction and reality of policies such as intelligent manufacturing, small and micro enterprise support and technological pformation, the severe situation of China's manufacturing industry will be partially alleviated in the future, and the growth rate will gradually stabilize.

One wall is separated from one another.

One prosperity and one decline, one life and one death.

Reporters in Guangdong, Jiangsu, Shaanxi, Shandong and other places to see, in the past year, "differentiation" has become the most prominent feature of China's manufacturing industry.

In January last year, Shenzhen based HUAWEI announced its sales target of $81 billion 800 million in 2016, an increase of more than 35% over the $60 billion in 2015, based on the fact that last year, it achieved over 100 million shipments of smart phones and became the world's third "smart billion" smart terminal manufacturers after apple and Samsung.

This amount is not only equivalent to two times the total income of Tencent, Alibaba and Baidu, but also means that HUAWEI will rank among the top 100 companies in the world, reaching the unprecedented heights of high-tech companies in China.

However, this month, it's next door to HUAWEI, the ten largest in the world.

One of the manufacturers is Taiwanese funded enterprises, and Dongguan is booming.

The production announcement was officially released and 1900 people were laid off.

Zhong Weijie, director of the Department of international human resources, said that the company will close all production units and retain only research and development departments and administrative departments. "Last year, due to the shrinking international demand and rising labor costs, profits fell by more than 50%, and shutting down is also an option."

It is understood that in recent years, the production capacity of this shoe company has been further pferred to Southeast Asian countries and provinces in mainland China.

Similar to the situation of HUAWEI and Xing's manufacturing differentiation, in the past year, the industrial added value of all above scale increased by 6.1% over the same period, and the total profit decreased by 2.3% compared with the same period last year.

First, there is a significant differentiation in the industry.

In contrast to new technology and new format industries, some industries with excess capacity and insufficient supply side reform are very difficult.

Yin Jianan, chairman of Shaanxi blower group company, said that the total industrial output value of the company exceeded 5 billion 200 million yuan last year. The biggest feeling is that it is difficult to operate in the field of overcapacity, but at the same time, the new opportunities brought about by energy saving and energy restructuring are constantly showing up.

As a leading domestic appliance company, Qingdao Haier group achieved a global turnover of 188 billion 700 million yuan last year, and a decrease of 200 billion yuan in 2014. At the same time, the online trading volume of the company reached 157 billion 700 million yuan, up nearly two times compared with the same period last year. Haier is pforming from the traditional manufacturing field to the Internet field.

The two is the significant differentiation of enterprises.

Even in traditional industries, the strength of its own operation determines the future of an enterprise.

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In Zhejiang, the once leaping leap Group has gained a foothold in the high-end manufacturing field, and developed the largest diameter underground pipe network in the world, and has become the second largest manufacturer in the world. Qiu Jibao, the head of the enterprise, said that many enterprises now complain about their troubles, but it is the most comfortable time for them to start their own businesses for 36 years.

As one of the most important industrial cities in China, the statistics of Guangzhou's Internal Revenue Bureau show that the product and technological innovation directly lead to the development and differentiation of enterprises in the city's traditional large tax revenue industries. For example, the automobile manufacturing industry achieves 30 billion 400 million yuan of national tax revenue, up by only 2.47% over the same period last year. However, the tax revenue of Guangzhou automobile and Honda has increased by 27.49% from the introduction of technological innovation to the new model. The tax revenue of the pharmaceutical manufacturing industry has reached 2 billion 70 million yuan, down 9.67% from that of the same period last year, but Guangzhou's biological and pharmaceutical enterprises with strong R & D and innovation ability grew 30.35%, which was 40.02 percentage points higher than the average level of the industry.

Three, there is a significant differentiation in the region, and some regions, especially those in the early stage of pformation and upgrading, have seen a good momentum of development.

According to the report released by the situation analysis group of the Sai Di Research Institute of the Ministry of industry and information technology at the end of January, on the whole, the industrial economic growth of all provinces and cities in the whole country slowed down in 2015, but the problem of polarization began to be highlighted by the influence of the industrial structure. Among them, the industrial structure was more reasonable, the direction of industrial development and the adjustment of structural adjustment were more advanced, such as Guangdong and Zhejiang, and the growth rate remained stable.

However, heavy industries, especially oil, coal and iron and steel, are growing slowly or even significantly negative growth. There may be risk of "cliff type" growth in the future.

Differentiation and anxiety are welcome.

Replace the old with the old, and change the space with time.

A number of interviewed enterprises and experts said that despite the pressure of growth, there is still great potential for China's manufacturing industry, whether in the short term or in the long run, and that the industrial structure is developing in the direction of anticipation, and there is reason for the market to maintain optimistic expectations.

In the view of most of the respondents and relevant experts, behind the general trend of aggravating differentiation is the objective reality that China's manufacturing industry has been attacked by the contradiction between supply and demand, and has not yet completed the pformation of new and old power.

From the demand side analysis, the continuous shrinking of external demand under the influence of the international financial crisis since 2008 has not changed, leading to the fact that the industrial capacity of our industry can not output smoothly and stay in China. The contradiction between overcapacity has not been fundamentally solved. From the supply side analysis, China's industrial products are not competitive in terms of technology, technology, design, packaging, brand and so on, and they can not meet the concentrated explosion of demand for high-quality products in the domestic market.

Lu Feng, a researcher at the National Development Research Institute of Peking University, thinks that the aggravation of the manufacturing differentiation is a good thing to worry about. It reflects the active growth of new industries, new products and new formats in the recent adjustment and deepening environment, which is expected to push the economic development of our country into a new stage. However, the new impetus is not enough to offset the decline of the traditional industrial growth cycle and the trend of slowing down factors. The active economic growth in many coastal areas and central and western regions is still not enough to offset the downward pressure on the adjustment of resource intensive provinces and regions. The difficulties in the economic downfall in some resource intensive areas and the difficulties in the early reform of state-owned enterprises are not enough, and the difficulties in interweaving redundant personnel are intertwined, which adds to the complexity of the economic situation.

However, some experts pointed out that some of the current macro data showed a short-term positive factor.

As of December last year, the PMI of China's high-tech manufacturing industry was 53%, with an annual average value of 2.9 percentage points higher than that of the manufacturing industry, indicating that the industrial structure pformation was developing in the expected direction. As at the end of 11, the finished product inventory of Industrial Enterprises above Designated Size increased by 4.6% over the same period last year, respectively, representing 9 and 2.8 percentage points lower than that of the same period last year and the end of 6, reflecting the gradual reduction of product sales pressure.

By the end of 10 2015, the financial expenses of Industrial Enterprises above designated size increased by 1.3% over the same period last year, down 11.5 percentage points from the same period last year, and the financial burden has increased the profitability of enterprises. It is expected that the profitability of manufacturing enterprises will rebound this year with the relevant policies and measures of the state and local governments, and the profitability of some strategic emerging manufacturing enterprises will also rise rapidly.

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At the same time, China's manufacturing industry has not changed its position in the global industrial structure.

In 2015, the scale of China's equipment manufacturing industry exceeded 20 trillion yuan, more than 1/3 of the global proportion, most of which ranked first in the world, and only 960 thousand machines were produced, accounting for 38%.

On this basis, China has formed a group of manufacturing leaders and core enterprises capable of realizing innovation driven pformation and capable of maintaining international competitiveness, with the ability to follow up development.

Pei Zhenjiang, deputy general manager of China Xidian group, said that in 2015, the company realized a profit of 1 billion 640 million yuan, double that of 2014. "Contrarian growth" is mainly through technological innovation, which has the manufacturing capability of power pmission and pformation core equipment. "It is not only in the leading position of the domestic industry, but also has organized and participated in the formulation of many international pmission and pformation standards. At present, the group has 1776 effective patents and 244 invention patents, and a number of achievements have won the national science and Technology Progress Award and the one or two prize."

In addition, China's manufacturing industry has further accelerated the pace of "going out" and further strengthened its ability to make use of domestic and foreign resources in the global pattern of manufacturing adjustment. This has not only been fully demonstrated by local pnational giants such as HUAWEI, Haier, GREE, but also in small and medium-sized enterprises in many traditional and emerging fields.

Liu Yan, head of private equity trading in mainland China and Hongkong, said that last year, the number of overseas mergers and acquisitions of mainland enterprises increased by 40%, and the amount increased by 21%, all of which reached a record high. Among them, 114 of the M & A pactions amounted to more than 1 billion US dollars, and the number of foreign mergers and acquisitions reached a new high in the same amount.

"Our survey and analysis show that the main characteristics of these mergers and acquisitions are the leading role of private manufacturing enterprises, focusing on the purchase of technology and brand to bring home development. I believe that this growth rate will continue to be observed in the coming years, and the large multinational enterprises headed by China will begin to move onto the stage of the world."

Liu Yan said.

"Three insistence" pition period of pition test period

Entering the 2016, many interviewed enterprises showed the confidence of "facing difficulties and meeting challenges" under the downward pressure. We must adhere to the concept of "making the country by establishing the country", persist in reducing burdens for enterprises, insist on promoting the "going out" of manufacturing industry, and promote the pition period of manufacturing industry across the pition period.

Zhu Genfu, executive vice president of Shanghai electric heavy industry group, said that, as one of the largest equipment manufacturing enterprises in China, although the production task is still full, the enterprises are neither optimistic nor pessimistic in the near future. Instead, they really shift the focus of development from the expansion of the past scale and the pfer of production capacity to the practice of internal strength and efficiency. "The bitter days are alike in the global market. The key is to see whether China has the ability to adapt itself to challenges, and to reshape the comparative advantage of Chinese industry through technological innovation".

Related enterprises and experts in an interview with reporters think that in 2016, high-tech manufacturing will continue to be the key driving force for industrial economic growth, supporting China's industrial optimization and upgrading. With the acceleration of the construction of the free trade area and the promotion of "one belt and one road" construction, the high-tech manufacturing industry represented by high end equipment is expected to increase in investment and export, and become an important support for industrial economic growth.

At the same time, the raw material industry will continue to be weak, eliminating backward and resolving excess capacity is still a long way to go. In addition, China's manufacturing industry is expected to further accelerate the pace of "Internet +" this year. It is estimated that the input of the traditional manufacturing industry into the electricity supplier and the development of information platform and intelligent manufacturing will further increase, and the integration and development between the third industry and the second industry will be more rapid.

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During this period of pformation, the "three insistence" has become the common voice of most industrial manufacturing enterprises.

First, we must adhere to the principle of "making the country by founding the state".

Dong Mingzhu, chairman of GREE group and Yin Jianan, chairman of Shaanxi blower group, think that manufacturing industry is the foundation of our country, especially the local government must keep sober understanding, can not replace the manufacturing industry with the service industry, and can not develop the third industry and neglect the second industry. Now, the plan of "making China 2025" has been clear, the key lies in the implementation. From the national level, we should start the implementation of a number of major projects with great potential, high correlation, strong driving power and good industrial foundation.

Through engineering implementation, we need to boost demand, pform traditional industries, promote the development of key areas, and enhance industrial competitiveness.

Two, we must persist in reducing the burden on enterprises.

Many enterprises reflect that the current burden of enterprises is still heavy. Yin Jianan said that for example, the cost of 1 yuan per employee will cost 1.6 yuan, including 0.6 yuan of social costs.

There are also calls for enterprises to implement reform of state-owned enterprises as soon as possible, improve the exit mechanism of excess capacity and the state capital circulation mechanism, reduce administrative intervention in mergers and acquisitions, promote social capital participation in competition and capacity restructuring, and improve the overall operation level of the industry.

Three, we must persist in promoting the "going global" of manufacturing industry.

He Yongke, general manager of China's permanent magnet direct drive wind turbines, said that China's manufacturing industry has formed a complete industrial system with strong foundation for international cooperation. However, in the current "going global" boom, there has been a disadvantageous tendency of disorderly competition leading to price war. It is suggested that the state should make overall plans and regulations as soon as possible so as to enhance the overall yield of our country and consolidate the foundation for international operation of domestic enterprises.

In addition, due to the international technical and trade barriers, China's manufacturing industry is often unable to obtain the access of developed countries and regions such as Europe and the United States. "We hope that relevant government departments in the country can make reasonable use of market rules, introduce relevant policies or methods, and effectively communicate with other countries and regions such as Europe, North America and other countries in order to help China's manufacturing industry participate in international market competition faster and better."