China's Industrial Structure Adjustment

I. The structure of the three industries has been continuously optimized and upgraded, basically realizing the transformation from industry and agriculture to the synergistic development of the primary, secondary and tertiary industries. Over the past 30 years, China has insisted on consolidating and strengthening the primary industry, improving and transforming the secondary industry, and actively developing the tertiary industry, which has facilitated the continuous development of the structure of the three industries in the direction of optimization and upgrading. Among the three industries, the average annual growth rate of the primary industry from 1979 to 2007 was 4.6%, that of the secondary industry 11.4%, and that of the tertiary industry 10.8%. In terms of composition, the proportion of the primary industry declined significantly, the proportion of the secondary industry remained basically the same, and the proportion of the tertiary industry rose sharply. Among them, the proportion of the primary industry fell from 28.2% in 1978 to 11.3% in 2007, a decline of 16.9 percentage points; the proportion of the secondary industry rose from 47.9% to 48.6%, an increase of 0.7 percentage points; and the proportion of the tertiary industry rose from 23.9 to 40.1%, an increase of 16.2 percentage points. The structural characteristics of the modern economy are becoming more and more obvious. Figure 1: Changes in the proportion of added value of the three industries from 1978 to 2007 The structure of employment in the three industries has also undergone obvious changes. Accompanied by a major restructuring of the economy, the situation in which 70% of the employed population was engaged in agriculture has been greatly improved, with a considerable proportion of the population turning to industry and services. Among them, the proportion of employed persons in the primary industry in total employment fell from 70.5% in 1978 to 40.8% in 2007, a decline of 29.7 percentage points; the proportion of employed persons in the secondary industry rose from 17.3% to 26.8%, an increase of 9.5 percentage points; and the proportion of employed persons in the tertiary industry rose from 12.2% to 32.4%, an increase of 20.2 percentage points. 20.2 percentage points. The great development of the service industry is the most distinctive feature of China's industrial restructuring over the past 30 years of reform and opening up. Traditional service industries such as transportation, wholesale and retail trade, and catering have developed considerably, playing an important role in increasing employment and facilitating the lives of the masses; from 1979 to 2007, the value added of the transportation, warehousing and postal industry increased 14.4 times, and its share of GDP rose from 5.0% to 5.9%. The value added of the wholesale and retail trade increased by 12.6 times, from 6.6% to 7.3% of GDP. The value added of the accommodation and catering industry increased by 30.2 times, rising from 1.2% to 2.3% of GDP. In order to meet the needs of industrialization, urbanization, informatization and globalization, a large number of modern service industries, such as finance and insurance, real estate, information consulting, e-commerce, modern logistics, tourism, etc., have shown accelerated development, which has greatly improved the overall quality and level of the service industry. 1979-2007, the added value of the financial industry increased 30 times, and its proportion of the GDP rose from 1.9% to 4.4%, an increase of 2.5 percentage points. The value added of the financial industry increased by 30 times, and its share in GDP rose from 1.9% to 4.4%, up 2.5 percentage points. The value added of the real estate industry increased by 22.8 times, and its share in GDP rose from 2.2% to 4.8%, an increase of 2.6 percentage points. The international tourism income increased from 260 million US dollars to 41.92 billion US dollars, an increase of 160 times, and the world ranking rose from 34th in 1980 to 5th. 2007 domestic tourist arrivals and tourism income reached 1.61 billion person-trips and 777.06 billion US dollars respectively, an increase of 4.8 times and 44.7 times compared with 1990 respectively. Second, the internal structure of agriculture has improved markedly, basically realizing the transformation from a single structure based on grain to the comprehensive development of agriculture, forestry, animal husbandry and fisheries. Before the reform and opening up, the countryside was under a highly centralized and unified management system, with farmers not having the right to decide what to grow, how to grow it and how much to grow, and the structure of the agricultural industry had long been in the "grain-based" mode of "farming as the mainstay of agriculture, and grain as the mainstay of farming. The structure of the agricultural industry has long been in a situation of "agriculture is dominated by planting, and planting is dominated by grain production" and "grain is the mainstay". With the adjustment of the central government's policy, the "grain-oriented" approach has been changed to "never relaxing grain production, and actively developing a variety of businesses", and the enthusiasm of farmers to carry out a variety of businesses in accordance with local realities and market demand has been brought into full play. In the total value of agricultural output, the proportion of cultivation declined markedly, while the proportion of forestry, animal husbandry and fisheries increased significantly. Cultivation declined from 80% in 1978 to 50.4% in 2007, a drop of 29.6 percentage points. The proportion of forestry, animal husbandry and fisheries increased from 3.4%, 15% and 1.6% respectively in 1978 to 3.8%, 33.0% and 9.1% in 2007, an increase of 0.4, 18 and 7.5 percentage points respectively. Progress in structural adjustment within the planting industry has been evident. With the steady development of grain production, the production of cash crops such as cotton, oil, sugar, fruit and vegetables has enjoyed great development; from 1979 to 2007, cotton production increased 2.5 times, oil production 3.9 times, sugar production 4.1 times, and fruit production 26.6 times. The ratio of area planted with grain, cash crops and other crops changed from 80.4:9.6:10 in 1978 to 68.9:26.65:4.45 in 2007, and the proportion of cash crops planted increased significantly. In the composition of livestock products, the proportion of pork in total meat production dropped from 94.2% in 1978 to 62.45% in 2007; beef and mutton rose to 14.51%; poultry meat and other products also accounted for 23%. The output of poultry eggs, milk and so on has grown rapidly, and its share in livestock products has risen sharply. Significant progress has been made in adjusting the layout of agricultural production, with the pattern of production of major agricultural products concentrating in areas of superior production gradually taking shape. At present, the country has formed the soybean and corn belt in the northeast, the peanut and wheat belt in the Huanghuaihai region, the rapeseed belt in the Yangtze River Basin, and the cotton industry belt in Xinjiang. in 2007, the top five provinces and regions in the production of cotton, wheat, soybeans, rapeseed, and corn ① accounted for 75.9%, 73.2%, 69.8%, 63.7%, and 52.9% of the country's output, 18.0%, 17.3, 11.4, and 52.9%, respectively, compared with the 1981 increase, 17.3, 11.4, 3.7 and 4.1 percentage points higher than in 1981. Agricultural industrialization has been developing rapidly. Businesses such as "company plus farm household" and contract farming have continued to develop, and a large number of leading enterprises and specialized townships and villages have emerged as the backbone of agricultural product production and processing, effectively raising the added value of primary products, lengthening the agricultural industry chain, increasing farmers' incomes, and improving the overall efficiency of agriculture. By the end of 2007, the total number of various types of agricultural industrialized organizations nationwide had reached 170,000, driving 95.11 million farm households, accounting for 38.4% of the total number of farm households nationwide. Thirdly, the structure of industrial economy has been obviously upgraded, basically realizing the transformation from the structure of low technology content, high labor-intensity and single category to the development pattern of labor-intensity, technology-intensity and complete categories. Textile machinery industry automation technology has improved significantly, backward cotton spindle and wool spinning spindles were compressed on a large scale, cotton textile equipment, most of the machines using frequency control, programmable controller PLC technology, the basic realization of the spinning products of electromechanical integration. Energy production technology significantly upgraded. 1978 domestic production of thermal power units, mainly 50,000 kilowatts and 100,000 kilowatts, roughly equivalent to the level of foreign countries in the 1950s. At present, small thermal power units are basically eliminated, low coal consumption, high power generation efficiency of the stand-alone capacity of 300,000, 600,000 kilowatts unit has become China's electric power industry's main generating units, and gradually to the 1 million kilowatts of development. Metallurgical industry technology and equipment level. The self-baking aluminum electrolysis tank process with high energy consumption and serious pollution has been completely replaced by the large-scale pre-baking electrolysis tank technology with international advanced technology level. The backward flat furnace steel-making process in the iron and steel industry has been completely eliminated, and a number of large-scale blast furnaces, large-scale converters, and modernized continuous rolling units with international advanced level have been put into production one after another, and the ratio of continuous casting in the iron and steel industry has been increased to 95.9% in 2004, which is nearly 90 percentage points higher than the 6.2% in 1980, and has reached the international advanced level. The production capacity of advanced copper and lead smelting production processes has reached about 70% of the total production capacity. Major technical equipment has changed the situation of long-term dependence on imports, and a number of major technical equipment has realized major breakthroughs in independent innovation. Large gas turbines, pumped storage units, DC power transmission equipment, supercritical thermal power units, large marine crankshafts, etc., have been localized; the annual output of 10 million tons of large-scale refinery equipment, the rate of autonomy is as high as 90%; 40,000 cubic meters of grade large-scale air separation equipment, 300,000 tons of synthetic ammonia, 520,000 tons of urea plant and other key equipment have been fully autonomized. A number of domestic high-grade technical equipment such as five-axis linkage CNC machine tools and virtual axis machine tools have gradually entered the market. High-tech industries such as electronic information, bio-engineering, aerospace, pharmaceutical manufacturing, new energy and new materials are developing vigorously. High-tech industry is a strategic leading industry of the national economy, which plays an important role in the adjustment of industrial structure and the transformation of economic growth mode. Since the reform and opening up, especially since the new century, in order to adapt to the development of the global high-tech industry competition and trend, China adheres to the combination of institutional innovation and technological innovation, and focuses on the development of high-tech industries that have a breakthrough role in driving economic growth, which has vigorously contributed to the adjustment of the industrial structure. 2007, the national high-tech industry*** had 21,517 enterprises, with an added value of 1,162.1 billion yuan, accounting for 11,621 billion yuan of GDP. 1,162.1 billion yuan, accounting for 4.7% of GDP and 9.9% of the value-added of industries above designated size, respectively 3 and 2.9 percentage points higher than in 1995. The export value of high-tech products increased from 3.7 billion U.S. dollars in 2000 to 347.83 billion U.S. dollars in 2007, with an average annual growth rate of 91.4%, and the proportion of all exports increased from 1.5% to 28.6%. Major breakthroughs have been made in key areas. There have been a series of major breakthroughs in aerospace technology, nuclear power generation technology, high-performance computer technology, heavy machinery and equipment manufacturing technology, CNC machine tool manufacturing technology, third-generation communication technology and other fields, gradually entering a historic stage of transformation from a large to a strong economy. 4. Significant progress has been made in the strategic restructuring of the state-owned economy, which has basically realized the transformation from a single publicly-owned economy to a variety of ownership economies **** with the development of the economy The mainstay status of the publicly owned economy was further consolidated, and its control, influence and driving force continued to grow.In 1978, the ownership structure of industrial enterprises was a single publicly owned structure consisting of enterprises under national ownership and enterprises under collective ownership. Among them, the number of industrial enterprises under national ownership accounted for 24.0%, and 77.63% of the total industrial output value; the number of collectively-owned industrial enterprises accounted for 76.0%, and the total industrial output value accounted for 22.37%. With the strategic restructuring of the state-owned economy, it has gradually withdrawn from general competitive areas such as manufacturing and textiles, and has further concentrated on important industries and key areas that have a bearing on the lifeblood of the country. A number of enterprises with long-term losses, insolvency and no hope of reversing losses were closed down, and the situation of public enterprises being numerous and overly dispersed was greatly improved, with the number and proportion of output value in the industrial economy both falling markedly. 2007, of all industries above designated size, the number of state-owned and state-controlled enterprises accounted for only 6.1%, and their industrial output value accounted for 29.5%; the number of collective enterprises accounted for 3.9%, and their industrial output value accounted for 2.5%. The number of collective enterprises accounted for 3.9%, and their total industrial output value accounted for 2.5%.

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