The value added for the high-tech manufacturing sector jumped 20.1% year-on-year in the first three quarters of 2021, lifting the two-year average growth rate to 12.8%. These growth rates show the strong momentum of China’s economy and the continuous acceleration of industrial transformation and upgrading. To further consolidate this uptrend, China needs to strengthen policy guidance, make it easier to do business, increase investment in innovation, create a favorable external environment, and effectively enhance the endogenous power to promote the strong growth of high-tech manufacturing.
The strong growth of high-tech manufacturing represents the increasing momentum of economic development. In the first three quarters, China’s robust high-tech manufacturing sector achieved rapid growth in value added, output, profits, etc. The growth in value added continued to outstrip the industry average. Furthermore, driven by import substitution, strong investment, trading up, and other factors, the outputs of integrated circuits, optoelectronic devices, industrial robots, solar cells, computers and other high-tech products also witnessed significant growth. In particular, the outputs of industrial robots and integrated circuits rose 57.8% and 43.1% respectively. By the end of September, over 2.1 million new energy vehicles had been produced and sold, which further consolidates China’s lead in this sector.
The strong growth of high-tech manufacturing sector does not happen overnight. The continuous support and guidance of relevant policies have provided a favorable development environment, whereas the constant technical progress and sound industrial position have laid a solid foundation. The huge market demand in China, especially the current need for epidemic prevention and control, has accelerated the application of AI, IoT, industrial Internet, 5G and other technologies, and in turn spurred the development of high-tech manufacturing in these fields. Next-generation IT drives the deep integration of informatization and industrialization. It also vigorously promotes the development of intelligent and digital manufacturing in China, enabling the manufacturing industry to cope with changes in the international landscape and build competitiveness. Put on a fast track, the high-tech manufacturing sector has shown strong risk resistance during COVID-19, and continued to lead the economy towards steady recovery.
Constant investment is needed for the high-tech manufacturing sector to maintain strong growth. Since the beginning of this year, the fast-growing investment in high-tech manufacturing has widened the gap with the industry average. It indicates that, through sustained efforts and investment, China’s industrial transformation and upgrading have made great headway. Economic restructuring, along with the development of innovation power, are well on track. High-tech manufacturing has become a major driver of industrial transformation and high-quality development. China continues to improve the technical innovation system with enterprises as the mainstay. It has vigorously developed high-tech industries and created a sound environment for the development of new technologies, new industries, new businesses and new models. In particular, it has boosted the demand for, and investment in, new energy vehicles and other upmarket products. Next, China will continue to strengthen policy support, improve the business environment, and create favorable external conditions for the strong growth of high-tech manufacturing.
More investment in innovation and higher endogenous power are also needed for the high-tech manufacturing sector to maintain strong growth. At present, China’s high-tech manufacturing sector outperforms the industry average by output, investment, efficiency growth rates. However, the sector is still on the small side, and much remains to be done. Some stranglehold problems remain to be addressed. China needs to break technical barriers at the source and enhance its competitive edge in AI, biomedicine, high-end equipment manufacturing, etc. It needs to rebuild the industrial foundation to make up for its weaknesses in basic parts and components, basic software, basic materials, basic processes and basic technologies. It also needs to further embrace the world and better solve technical problems through open collaboration, so as to provide impetus for the high-quality development of its high-tech manufacturing sector.
(Source: CCPIT/ Chinatradenews.com.cn)
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