Optimization and upgrading of industrial structure

The optimization and upgrading of industrial structure is the organic unity of rationalization and heightening of industrial structure. William Petty (1623-1687), the founder of British classical economics, was the first to study the theory of industrial structure. British economist Colin Clark (1905-1989) revealed the law of the evolution of industrial structure caused by the change of per capita income that leads to labor mobility from the first industry to the second industry and then to the third industry. American economist Simon Kuznets (1901-1985) further explored the law of evolution of industrial structure and clarified the general law of changes in the distribution of labor and national income among industries.

Industrial optimization includes five characteristics: structural optimization, advanced technology, cleanliness and safety, high value-added, and strong employability. All industrial sectors of the national economy to maintain a certain proportion of the relationship, then the Marx social capital reproduction theory reveals the objective inevitability of socialized mass production, is one of the general laws of industrial structure change. It includes three aspects:

(1) Rationalization of industrial structure, i.e., coordination among industries realized on the basis of existing technology. It involves the coordination of various relations among industries, such as the coordination of the proportional relations among industries in the scale of production and the improvement of the degree of inter-industry association, etc. It also includes the coordination of the structure of output value, the coordination of technological structure, the coordination of the structure of assets and the coordination of the structure of intermediate factors.

(2) Heightening of industrial structure, i.e., the development of industrial structure from the lower level to the higher level according to the history and logical sequence of economic development. It includes the evolution from the dominant proportion of primary industry to the dominant proportion of secondary and tertiary industry in the whole industrial structure; the evolution from the dominant proportion of labor-intensive industry to the dominant proportion of capital-intensive industry and technology- and knowledge-intensive industry; and the evolution from the dominant proportion of industry manufacturing primary products to the dominant proportion of industry manufacturing intermediate and final products.

(3) The unity of rationalization and intensification of industrial structure. Rationalization of industrial structure is the foundation of the heightening of industrial structure; heightening of industrial structure is the inevitable result of rationalization of industrial structure. Promoting the optimization and upgrading of industrial structure is a long-term task in the process of China's economic and social development. According to the new trend of world economic and technological development and the requirement of taking the new road of industrialization, the 16th National Congress of the People's Republic of China (PRC) has made the deployment of promoting the optimization and upgrading of industrial structure, i.e., to form an industrial pattern with the new and high-tech industry as the forerunner, the basic industry and the manufacturing industry as the support, and the service industry as the all-round development. For China to promote the optimization and upgrading of industrial structure points out the direction. The Suggestions of the Central Committee on the Formulation of the Eleventh Five-Year Plan for National Economic and Social Development, adopted by the Fifth Plenary Session of the 16th Central Committee of the People's Republic of China (CPC), clearly put forward the important tasks and keys to promote the optimization and upgrading of China's industrial structure during the 11th Five-Year Plan period. It pointed out that "the development of advanced manufacturing industry, increasing the proportion of service industry and strengthening the infrastructure construction of basic industries are the important tasks of industrial structure adjustment, and the key is to comprehensively enhance the capability of independent innovation, endeavor to master the core and key technologies, enhance the ability of transformation of scientific and technological achievements, and improve the overall technological level of the industry." The Interim Provisions on Promoting Industrial Restructuring, which was adopted by the executive meeting of the State Council in December 2005, further specifies the objectives, principles, directions and focuses of industrial restructuring in the current and future periods, and is of great significance for the comprehensive implementation of the scientific outlook on development, the strengthening and improvement of macro-controls, the transformation of the mode of economic growth, the promotion of optimization and upgrading of the industrial structure, and the maintenance of the steady and relatively rapid development of the national economy. The purpose of this report is to provide a clear picture of the development of the country's economy and its future.