Why does the central government want to reintroduce the development of "labor-intensive industries"?

The development of labor-intensive industries is the objective requirement of China's national conditions, and is an insurmountable stage of China's economic development before the middle of this century. China's rural surplus labor force, and the quality of low, and capital, technology and other factors are relatively scarce, this is China's basic national conditions.

The surplus rural labor force not only can't produce benefits for the society, but on the contrary, it participates in the distribution of social benefits, which is the fundamental reason for the low agricultural labor productivity and the difficulty of increasing farmers' income. International experience shows that all countries and regions with large populations and scarce land and capital have to go through the process of evolving their industrial structure from resource- and labor-intensive to capital- and technology-intensive.

Japan, South Korea, Singapore, Thailand, Taiwan, Hong Kong and other countries and regions in the early stages of industrialization are relying on labor-intensive industries to start and rise. We should learn from the successful experience of neighboring countries, based on the "low labor costs" as the basic national conditions and comparative advantages, to absorb capital, the introduction of technology, in exchange for other resources, the development of labor-intensive industries, in order to be able to find a way out of the large number of rural surplus labor.

The development of labor-intensive industries is an important way to promote rural employment and farmers' income. Labor-intensive enterprises can absorb more labor. According to estimates, each unit of fixed capital absorbed by the number of laborers, labor-intensive light textile sector is capital-intensive heavy industrial sector 2.5 times, labor-intensive small enterprises is more than 10 times the capital technology-intensive large enterprises. Vigorously developing labor-intensive industries will play an important role in solving employment, increasing farmers' income and boosting effective demand in rural areas. An important way to promote rural employment development of labor-intensive industries is an important measure to expand exports and increase foreign exchange earnings.

An important comparative advantage of China lies in the abundance of labor resources, and labor-intensive products still have advantages in the international market. According to the statistics of the Bureau of Township and Village Enterprises of the Ministry of Agriculture, during the period of 1996-2001, the export value of labor-intensive products of township and village enterprises accounted for about 60% of the total export value of township and village enterprises in the same period. In the context of joining the WTO, the development of labor-intensive products and industries such as vegetables and fruits is still an important way to expand China's agricultural exports and increase foreign exchange earnings. The development of labor-intensive industries is the key to promoting urbanization. The key to developing small towns is to cultivate small town economies.

Practice has proved that township enterprises are important economic pillars for the construction of small towns, according to statistics, 1996-2001, labor-intensive industries on the national township industrial value-added contribution rate of 55.5%. Rural industrialization based on the development of labor-intensive industries, such as the Southern Jiangsu model, Wenzhou model, the Pearl River Delta model, etc., has laid the economic foundation for the construction of small towns.