Emerg­ing in­dus­tries to grow faster

Break­throughs in graphene pro­duc­tion and ap­pli­ca­tion are ex­pected in next few years

China Daily (Hong Kong) - - BUSINESS | MARKETS - By YANG ZIMAN yangz­i­man@chi­nadaily.com.cn

China’s emerg­ing in­dus­tries — in­for­ma­tion, man­u­fac­tur­ing, bi­ol­ogy, en­vi­ron­ment man­age­ment and dig­i­tal tech­nol­ogy — will each at­tain an out­put scale of around 10 tril­lion yuan ($1.4 tril­lion) by 2020, ac­cord­ing to the Plan on Strate­gic New In­dus­tries Dur­ing the 13th Five-Year-Plan (2016-20) re­leased by the State Coun­cil on Tues­day.

The plan states that the added value of these in­dus­tries will in­crease from 8 per­cent of GDP in 2015 to 15 per­cent by 2020, cre­at­ing 1 mil­lion jobs each year on av­er­age.

Ac­cord­ing to the re­search by Wuhan-based TF Se­cu­ri­ties, the com­pound an­nual growth rates of these five in­dus­tries will be around 20.8 per­cent in the next five years, if the an­nual GDP growth rate stays around 6.5 per­cent.

The plan says that high-end equip­ment man­u­fac­tur­ing and new ma­te­ri­als in­dus­tries will have out­put of 12 tril­lion yuan by 2020.

A re­port by the Na­tional Man­u­fac­tur­ing Strat­egy Ad­vi­sory Com­mit­tee shows that, in 2015, high-end equip­ment man­u­fac­tur­ing reg­is­tered 6 tril­lion yuan in rev­enue, ac­count­ing for 15 per­cent of do­mes­tic equip­ment man­u­fac­tur­ing. It is es­ti­mated that this per­cent­age will rise to 25 per­cent by 2020, which means that high-end equip­ment man­u­fac­tur­ing will be­come a pil­lar in­dus­try in the na­tional econ­omy.

Li Wei, di­rec­tor of the De­vel­op­ment Re­search Cen­ter of the State Coun­cil, said that although the over­all scale of emerg­ing in­dus­tries is still small, the growth rates are higher than con­ven­tional in­dus­tries.

“The tech­nol­ogy-in­ten­sive and high value-added new in­dus­tries are key to ad­just­ing the sup­ply side to a more di­ver­si­fied and higher level de­mand. Also, they are go­ing to even­tu­ally re­place the out­put in in­dus­tries with over­ca­pac­ity, most of which is out­dated ca­pac­ity,” said Li.

In the first quar­ter this year, the new in­dus­tries grew by 10 per­cent year-on-year, 4.2 per­cent­age points higher than the growth rate of all in­dus­tries.

Ac­cord­ing to the plan, by 2020 more than 30 new mate- ri­als in key ar­eas will be in­dus­tri­al­ized and take up 70 per­cent of the do­mes­tic mar­ket. In par­tic­u­lar, the plan em­pha­sizes “break­throughs in the ap­pli­ca­tion tech­nolo­gies of graphene.”

Ac­cord­ing to TF Se­cu­ri­ties, graphene, the light­est and strong­est ma­te­rial ever dis­cov­ered, widely used in ca­bles, bat­ter­ies, mil­i­tary de­vices and en­ergy stor­age, is ready for in­dus­tri­al­iza­tion. It will be­come an im­por­tant area to which cap­i­tal flows in the next few years.

The plan states that the goal of in­creas­ing the ap­pli­ca­tions of new en­ergy and low-car­bon in­dus­tries should have out­put of more than 10 tril­lion yuan by 2020. The an­nual sales of new en­ergy au­to­mo­biles in 2020 is put at 2 mil­lion units, with to­tal sales of more than 5 mil­lion units in the next five years.

In the next five years, the out­put of new en­ergy au­to­mo­biles will in­crease at an av­er­age rate of 50 per­cent, ac­cord­ing to Yuanda Se­cu­ri­ties Co Ltd.

the es­ti­mated com­pound an­nual growth rates of these five in­dus­tries in the next five years

ZHANG TAO / FOR CHINA DAILY

A visi­tor is at­tracted by the care­taker ro­bots pre­sented by a Chi­nese tech­nol­ogy com­pany in Zhengzhou, He­nan prov­ince.

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