2016 is the first year of China's "13th Five Year Plan", the year of full implementation of the "Made in China 2025", "Internet plus" and other major national strategies, and the key year of stable growth and structural adjustment. Achieving stable and healthy industrial development is of great significance for China's economy to shift from high-speed to medium and high-speed, and the manufacturing industry to the middle.

　How to Made in China 2025?

Currently, China's economy is facing a new normal and a severe test of economic slowdown, but at the same time, it is also in a major strategic opportunity brought about by the fourth green industrial revolution, including industrial restructuring, enterprise transformation and upgrading, industrial transfer and layout, development mode transformation, and technological information. Therefore, we must steadfastly promote reform and opening up, accelerate economic structural adjustment and industrial transformation and upgrading, create mass entrepreneurship and innovation, drive the dual engines of public goods and services, continuously enhance the endogenous growth momentum of the economy, and gradually improve the quality and efficiency of economic development.

　　Positive factors coexist with difficulties and pressure

Since 2015, the domestic and international economic environment has been complex, and China's economic pressure has increased. Among them, the industrial economy has encountered the most difficulties and pressures. In 2016, China's industry faced many positive factors and favorable conditions, as well as many difficulties, risks, and challenges. It is estimated that the difficulties may be even greater than in 2015.

From the perspective, the global economic recovery is weak, with increasing uncertainty and instability factors, and the outlook is not optimistic. Developed economies face significant obstacles such as high debt, aging population, and declining labor productivity growth, making it difficult to accelerate the economy. Emerging economies are facing sustained pressure from capital outflows and exchange rate fluctuations while their growth rates are declining, and their economic weakness is difficult to change. At the same time, the sluggish commodity prices have intensified deflationary pressure, and the basic agreement reached in the TPP has posed challenges to China's higher standards and wider economic and trade rules. The uncertainties in the economic and financial fields have directly increased the difficulty of China's exports, and have had a sustained impact on the RMB exchange rate and industrial product prices.

From a domestic perspective, positive factors coexist with difficulties and pressures. On the positive side, China's development is still in an important strategic opportunity period where great achievements can be made. The long-term positive trend of economic fundamentals has not changed, with ample potential, good resilience, and ample room for maneuver. At the same time, the development momentum of new industries and new formats is good. "Internet plus" has become a new engine to boost economic development, laying a good foundation for the smooth operation of industry in 2016, and the industrial economy will generally maintain a slow and stable operation trend. But the difficulties and pressures of stable growth in our country continue to increase, and deep-seated contradictions in development continue to emerge. Among them, the prominent problems faced by the operation of the industrial economy are the weakening of traditional driving forces, increased pressure for industrial structure transformation and upgrading, and insufficient innovation capabilities of enterprises. As a result, the differentiation of regional, industry, and enterprise trends may continue to deepen, and difficulties and challenges will increase.

　Facing new situations, new problems, and challenges

Currently, China's traditional industries are undergoing a deep adjustment process. High energy consuming industries such as steel, non-ferrous metals, building materials, and electricity are experiencing a slowdown in growth due to overcapacity and resource and environmental constraints. Export oriented industries such as textiles, light industry, and electronics are continuously losing competitiveness. At the same time, the equipment manufacturing industry and high-tech manufacturing industry have maintained high growth during the economic downturn, gradually enhancing their ability to support the industrial economy. But under the new normal of economic development, China's industrial development not only faces the entanglement of old problems, but also the challenges of new situations and problems.

One reason is that China's current investment growth still mainly relies on the government, and the willingness of enterprises to invest independently is not strong, resulting in a low level of industrial investment efficiency. The contradiction between high investment rate and low investment efficiency, on the one hand, causes huge waste of resources and energy, leading to serious overcapacity problems; On the other hand, inefficient investment may trigger debt crises and bring systemic risks to the economy. Secondly, due to the insufficient effective demand in the market and the gradual release of a batch of new project production capacity in previous years, competition between industries has become fierce, and the problem of industrial overcapacity has become more prominent. Some industrial sectors are deeply mired in deflation. Thirdly, the factors of industrial production remain high, and the competitiveness of industrial exports is weakened. China's industrial exports are mainly labor-intensive products, and the costs of factors such as labor and land continue to rise. The increased production and operation costs of enterprises have greatly squeezed the profit margins of export enterprises, and the enthusiasm of enterprises to expand reproduction has decreased. The fourth issue is that industrial enterprises have low R&D innovation efficiency and lagging independent innovation capabilities. Due to the low concentration of industries and scattered R&D investment in our country, government or enterprise R&D funds are dispersed and diluted by numerous small enterprises, resulting in wasted R&D funds. Fifth, the profitability of industrial enterprises has weakened, and production and operation difficulties have intensified. Due to the sharp decline in commodity prices, decreased demand for foreign trade, and overcapacity, the profits of industrial enterprises in China have continued to decline, leading to the dilemma of "increasing income without increasing profits".

Overall, the reasons for these problems are: firstly, the lack of craftsmanship spirit in Chinese culture, which has become a cultural obstacle for China's industry to move towards refinement and industrialization, a lack of innovation consciousness during economic development, and a lack of innovation ability during economic recession. Secondly, the preference of Chinese consumers for "good quality and affordable" products has prompted some manufacturing enterprises to constantly pursue cost reduction, but cut corners under imperfect technological conditions. Thirdly, although China's economy theoretically emphasizes the development of the real economy, the development of the virtual economy has had a certain impact on the real economy in the absence of a perfect real economy.

　　Looking forward to a new leap forward in China's industry

To ensure the stable and healthy development of the industrial communication industry in 2016 and a good start to the 13th Five Year Plan, the National Conference on Industry and Information Technology recently proposed the main expected goals for 2016, which are to increase the added value of industrial enterprises above designated size by about 6%, reduce energy consumption by 4%, and reduce water consumption per unit of industrial added value by 4.5%. At the same time, it is particularly emphasized to focus on promoting the following work in the industrial field.

One is to focus on the quality and efficiency of supply, and strive to maintain the stable operation of the industry. Launch a new round of major technological transformation and upgrading projects, implement major projects such as relocation and transformation of urban hazardous chemical and steel enterprises, and relocation and transformation of non-ferrous metal enterprises from cities to parks. Carry out special actions to improve the supply of consumer goods, enhance quality and brand, and promote the production and application of green building materials. Implement the promotion plan for new energy vehicles. Launch special actions for the localization of agricultural machinery and equipment, ship support, major emergency equipment and products.

The second is to implement differentiated policies to adjust the stock and accelerate the optimization and upgrading of traditional industries. Develop and implement special policies for the separation of key industries such as machinery, automobiles, light industry, textiles, electronics, and building materials, support difficult industries to accelerate capacity reduction, inventory reduction, and cost reduction, achieve product upgrading, transformation and production, and turn losses into profits. Urgently formulate and implement the overall plan to promote industrial restructuring and dispose of "zombie enterprises", guide "zombie enterprises" to exit smoothly, and actively promote disruptive and strategic mergers and acquisitions. Multiple measures will be taken to resolve overcapacity, and pilot projects will be launched to address overcapacity in industries such as steel, cement, and flat glass. Implement green manufacturing projects. Strengthen the guidance and management of national demonstration bases for new industrialization industries.

Thirdly, we must adhere to innovative development and cultivate and strengthen the manufacturing industry. Solidly promote the "1+X" system of Made in China 2025 and improve the coordination mechanism for the layout of major industrial projects. Implement the construction project of national manufacturing innovation centers, and strive to build 2-3 national manufacturing innovation centers within the year. Implement the Industrial Strong Foundation Project, concentrate on solving 30-50 iconic products and technologies, and lay out a number of industrial technology foundation platforms and service support centers. Implement equipment innovation projects and accelerate the implementation of major special projects for aviation engines and gas turbines. Actively expanding the market for equipment and new material applications.

The fourth is to focus on the main direction of intelligent manufacturing and promote the deep integration of the two industries. Implement intelligent manufacturing engineering to support CNC machine tools andindustrial robotInnovative applications of five key equipment: additive manufacturing, intelligent sensing and control, intelligent detection and assembly, and intelligent logistics and warehousing. Continue to implement pilot demonstration actions for intelligent manufacturing and identify more than 60 new model pilot demonstration projects. Deepen the innovative development of the "Internet plus" manufacturing industry, and guide the preparation of a roadmap for the integrated development of the Internet and manufacturing industry. Deeply promote the integration of industrialization and informatization management system, develop the overall framework and roadmap of the standard system.

Fifth, we will vigorously support small and micro enterprises and promote innovation, management, quality improvement, and efficiency enhancement in enterprises. Utilize the coordination mechanism of the Office of the Working Group for Promoting the Development of Small and Medium sized Enterprises, comprehensively review and evaluate the implementation of various policies benefiting enterprises, and make them public to the society. Promote the operation of the National SME Development Fund as soon as possible, promote the establishment of a SME credit guarantee system and a bank risk sharing mechanism, and carry out the "Internet plus" small and micro enterprise entrepreneurship and innovation cultivation action. Fully implement the management of enterprise related fee catalog list. Carry out a special action to enhance enterprise management, and formulate and issue guidance opinions to guide enterprises to innovate management and improve quality and efficiency.

In the new year, China will continue to promote reform and innovation, and enhance endogenous growth momentum. With the development of the Chinese economy entering a period of structural adjustment, China's industrial economy is also expected to achieve a significant transformation from quantitative to qualitative changes. The arrival of this day will not be far away.