What is the necessity and urgency of China's industrial transformation and upgrading?

1, the reindustrialization of developed countries forced China's manufacturing industry overall development strategy must be shifted from the low-cost strategy based on factors to the differentiation strategy based on innovation, so as to promote the industrial transformation and upgrading.

Has been, the development of China's manufacturing industry benefited from the comparative advantage of low cost of labor, capital and environmental factors, resulting in China's overcapacity as well as the distortion of the factor market, has been a serious obstacle to the transformation and upgrading of China's industries and the innovative development of manufacturing industry.

The "Third Industrial Revolution" has exacerbated the unsustainability of this low-cost path of industrialization, forcing China's industrial development strategy must be to form new competitive advantages through innovation, so as to achieve industrial transformation and upgrading.

2, the re-industrialization of developed countries will give rise to the development of new manufacturing systems and production equipment industry, and the development of these industries will lead to the emergence of information industry, new materials industry, and other new industrial sectors and growth, thus creating a good opportunity for the cultivation and development of China's strategic emerging industries. The re-industrialization of developed countries also points out the direction of industrial transformation and upgrading for China in time.

Re-industrialization has accelerated the trend of deep integration of manufacturing and service industries, and the boundaries between the secondary and tertiary industries are becoming increasingly blurred, which means that the direction of industrial restructuring and the orientation of industrial policy in China, which has been emphasizing on the enhancement of the proportion of service industries, need to be re-examined.

The need to start from the manufacturing industry and the service industry from the perspective of the intrinsic relationship between the interface, around how to enhance China's ability to manufacture complex industrial products to develop China's service industry development strategy.

Extended information:

China's industrial restructuring and upgrading of paths:

The transformation and upgrading of private enterprises, from a broad perspective mainly follow the two paths of industrial upgrading, namely, inter-industry transformation and upgrading and intra-industry transformation and upgrading.

Inter-industry transformation and upgrading is to change from the primary industry to the secondary and tertiary industries, from the labor-intensive industries to the capital- and technology-intensive industries, and from the manufacture of primary products to the manufacture of intermediate and final products.

The transformation and upgrading within an industry is that the degree of processing and re-processing within an industry gradually develops in depth, realizing the high degree of processing and technological intensification, which is the deepening development of the industry itself.

There are also two routes for its upgrading: one is to follow the route of technological (process) upgrading, product upgrading, functional upgrading, and value chain upgrading; and the other one refers to the route from OEM (OEM) - ODM (Own Designed Manufacturing) - OBM (Own Brand Manufacturing).

People's Daily Opinion: Forcing China's Industrial Transformation and Upgrading

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