Mid-Year Economic Observation|Under the pressure and challenge, how can Chinese manufacturing break through? ——Observation of manufacturing trends in the first half of the year

The international epidemic continues to spread, and the global economy is in a downturn; downward pressure on the domestic economy is increasing, and the pace of structural adjustment is deepening. 2020 is not unusual for Chinese manufacturing.
Difficulty is a common feeling. Facing difficulties is a common choice.
The reporter went to many places to investigate and found that proactive response and proactive change is a true portrayal of many manufacturing companies. In the process of responding to challenges, Made in China continued to lay a solid foundation, sought opportunities in crisis, and made the pace of transition to high quality more steadily.

The pressure is heavy, but the momentum is showing up
“Some of the orders in the process were’halted halfway,’ and some scattered orders were directly invalidated.” Risk challenges made Yang Hua, chairman of Wish Wish Home Textile Co., Ltd., once “very anxious.” Founded 22 years ago, Wish Home Textiles has been OEM for many international brands, and has experienced great storms and waves, but this year has encountered an unprecedented crisis.
Self-help is imminent, and Yang Hua is determined to reform the process and turn exports to domestic sales. The company cooperated with Suning to use big data to “guide” the design, manufacturing and sales. The sales of newly developed “antibacterial quilts” rose sharply during the “618″ period.
The sudden epidemic disrupted the rhythm of international division of labor and production. The international market is sluggish, the global industrial chain is volatile, and the pressure is high. It is the common feeling of enterprises. Speeding up local supporting facilities, striving to open up the market, and facing risks and challenges, Made in China is actively responding.

About 26,000 foreign trade companies went to the “cloud”, and the “Canton Fair Online” showed a different kind of “popularity”; during the “618″ period, Taobao live broadcasts increased by 123% year-on-year. Behind the huge traffic is the effort of manufacturing companies to go to the “cloud”. Figure…
In June, China’s manufacturing purchasing managers’ index rose by 0.3 percentage points from the previous month; the production index and the new order index rose by 0.7 and 0.5 percentage points from the previous month; the profits of industrial enterprises in May increased by 6% year-on-year…a series of data confirms The manufacturing industry is recovering steadily.
“It is necessary to have a clear understanding of risks, but also to move forward with firm confidence.” Huang Libin, spokesperson for the Ministry of Industry and Information Technology, believes that the pace of resumption of work and production is accelerating, the macro policy continues to be effective, the positive factors of manufacturing development are accumulating, and the pressure on enterprises is alleviating. China’s manufacturing is gaining momentum.
The challenge is big, and there are more opportunities in it
The more we face the difficulties and challenges, the more we must cultivate new opportunities in the crisis and open new games in the changing situation.
The force of the epidemic and the pressure of survival have made many traditional industries realize that intelligence is the top priority related to the way of survival and the quality of development. Efforts to seize digital opportunities are the active choice of many companies.
Orders, materials and other information on the screen are updated in real time; the cloud platform visually monitors production status and quality… Hefei Lianbao Technology Workshop is full of intelligence from parts processing to computer assembly.
Lianbao Technology CEO Bai Peng said that with the help of digitalization, the company’s cumulative shipments have increased significantly. The next step is to extend intelligent management to the entire industrial chain.
Relying on power big data, the State Grid Hangzhou Power Supply Company has divided regions, industries, and companies to locate “breakpoints” to help the industrial chain resume work; JD Digital has released digital solutions for the bulk commodity industry to improve efficiency and safety…Relevant practices are now Unfold.

“Artificial intelligence has initially proved its potential to disrupt and restructure the industry.” Baidu Chairman Li Yanhong said, “new infrastructure” will promote the application of artificial intelligence in transportation, energy and other fields, greatly improve efficiency, and drive economic development.
The more you face uncertainty, the more you must practice your skills. Resolute innovation is another enlightenment brought to enterprises by the epidemic.
From research on rooting materials, initiating innovations in meltblown cloth, to participating in the formulation of standards for children’s masks, Lanhe Medical has developed a “doorway” for small masks for more than ten years. The epidemic has brought high demand, and Lanhe has seized the “outflow” with its excellent products, and its exports have increased by 50 times year-on-year. “There is rapid expansion today, and tomorrow there will be big waves scouring the sand.” Cao Jun, the company’s chairman, said that the company must continue to “advance” to key materials.
Relying on the communication, imaging and other technologies and the layout of the industrial chain, vivo has launched more than 10 5G mobile phones as of May this year. In the future, we will continue to develop key technologies and promote the formulation of standards.
While the decline in manufacturing investment has narrowed, investment in high-tech manufacturing from January to May increased by 2.7% year-on-year. Behind the numbers is the market’s recovery and innovation.
“The transformation of Made in China is not a gradual upgrade, but a new leap forward.” Zhu Hengyuan, deputy dean of the Global Industry Research Institute of Tsinghua University, said. The global manufacturing landscape is reshaping to a new level.
Strong foundation, striving to open up new space
Attaching great importance to the hidden dangers exposed by the epidemic, building a solid foundation and making up for shortcomings are the key measures to deal with risks, and it is also an important means to win the initiative. A series of actions are underway around the “strong foundation”.
“We give priority to paying hundreds of millions of yuan to supporting enterprises, and we will increase local supporting facilities while doing a good job of resuming work in coordination,” said Lu Wenjun, deputy general manager of China First Heavy Industry Group Co., Ltd. The proportion of local supporting facilities has increased from less than 20% to 52%. The next step will be to coordinate upstream and downstream to stabilize the industry chain.
The supply chain of the industrial chain is stable, and the foundation of manufacturing is stronger. Since the beginning of this year, my country has launched a series of measures including stabilizing the supply chain of the industrial chain, centering on grasping the “six guarantees” and promoting the “six stability”.
The Ministry of Industry and Information Technology has comprehensively sorted out the list of leading enterprises and core supporting enterprises in key areas; eight departments launched pilot projects for innovative applications in the supply chain; increased support for small and medium-sized enterprises…a series of measures were launched accordingly.
According to data from the Ministry of Industry and Information Technology, as of June 16, the average operating rate and resumption rate of industrial enterprises above designated size nationwide were 99.1% and 95.4%, respectively. Monitoring shows that 131 leading enterprises have led about 600,000 upstream and downstream SMEs to resume production.
The industrial chain must be safe and efficient, and the foundation of industry and informatization must be firmly laid.
After completing the self-manufacturing of memory chips, Changxin Storage, located in Hefei, Anhui, recently achieved a breakthrough in production capacity. Focusing on the industrial strategy of “integration of cores, screens and devices”, Hefei has also grown into a key development area for the integrated circuit industry, with more than 250 integrated circuit companies and continuous double-digit growth in annual output value.
Core technology, key materials, and basic craftsmanship are the foundation for industrial development. Not long ago, the Ministry of Industry and Information Technology approved the establishment of a national integrated circuit characteristic technology and packaging and testing innovation center. Since 2016, my country has approved and initiated the construction of more than ten national manufacturing innovation centers. Strengthen basic innovation and make the pace of manufacturing in China more stable.
Accelerate the construction of new infrastructure, speed up the innovation and development of the industrial Internet… The deployment of a solid digital foundation is underway.
Huang Libin said that the Ministry of Industry and Information Technology will introduce specific measures to strengthen the industrial foundation and upgrade the modernization level of the industrial chain to promote the accumulation of more resources and elements in the manufacturing industry, and help China’s manufacturing to open up a broader space.


Post time: Apr-30-2021