“Man­u­fac­tured in China” Builds a Stronger Na­tion

Builds a Stronger Na­tion

China Today (English) - - CONTENTS - By staff reporter ZHANG HONG

THE la­bel “pro­cess­ing ma­te­ri­als sup­plied by clients” was for some time syn­ony­mous with “Made in China.” It is a painful re­minder to China’s manufacturing in­dus­try of hav­ing to ex­port 800 mil­lion shirts so made to im­port one air­craft. Thanks to im­ple­men­ta­tion of the eco­nomic trans­for­ma­tion and in­no­va­tion strat­egy, how­ever, China’s con­struc­tion abroad of high­speed trains, the go­ing global of its nu­clear power projects, and its smart phone ex­ports have al­tered the “Made in China” con­no­ta­tion to that of “In­tel­li­gent Manufacturing in China.” But in light of the pres­sure ex­erted by the eco­nomic down­turn, how can the in­dus­try main­tain its fo­cus on the high end of the value chain? And how may it cre­ate more star brands and qual­ity goods? The re­cently pub­lished draft out­line of the 13th Five- Year Plan for­mu­lated a spe­cific path for China’s in­dus­trial de­vel­op­ment and trans­for­ma­tion, in­clud­ing the up­grade of its manufacturing.

In­no­va­tion-Driven

Chi­nese cell­phone man­u­fac­turer Len­ovo, owner of the Mo­torola brand, plans to in­crease its smart phone out­put in In­dia to 10 mil­lion in 2016, its goal to be­come the sec­ond-largest smart phone pro­ducer on the sub­con­ti­nent. The smart phone ship­ments of an­other Chi­nese com­pany, Huawei, ex­ceeded 100 mil­lion in 2015, giving the com­pany a mar­ket share rank­ing among the global top three, along with Sam­sung and Ap­ple.

“Pro­mot­ing pro­duc­tion by low­er­ing costs is no longer vi­able,” Len­ovo CEO Yang Yuan­qing said. “In the past, we worked mainly as an equip­ment manu- fac­turer for oth­ers, and had no con­trol over the prod­uct or manufacturing tech­nique.”

Len­ovo now in­vests RMB 10 bil­lion an­nu­ally in re­search and de­vel­op­ment. The com­pany in­vested US $2.5 bil­lion in In­dia last year, mak­ing it one of the top 40 com­pa­nies there. The trans­for­ma­tion from low-cost to in­no­va­tion- and brand­driven manufacturing is the in­evitable course for Chi­nese en­ter­prises to cre­ate com­pet­i­tive prod­ucts.

The old, in­vest­ment-driven mode of de­vel­op­ing the Chi­nese econ­omy no longer works. There­fore the coun­try in­tends to de­vote more re­sources to in­no­va­tion.

In­no­va­tion was in­deed fore­most among China’s five de­vel­op­ment con­cepts put for­ward in 2015, Premier Li Ke­qiang hav­ing spec­i­fied mass in­no­va­tion and en­trepreneur­ship in his govern­ment work re­port that year. The coun­try has since adopted a num­ber of mea­sures

The Len­ovo booth at the Mo­bile World Congress 2015 held in Barcelona, Spain.

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