New“Made in China”Model

By XIANG ANBO

RECENT major changes in Chinas industry structure， such as intensifying environmental protection and restricting resource exploitation， increasingly fierce market competition， and fast progressing technologies， have rendered the previously extensive development mode of the nations manufacturing sector obsolete. The old model features heavy production factor input and large-scale production expansion. To adapt to Chinas new normal， many Chinese manufacturers are upgrading their operations to sharpen the industrys competitive edge and freshen its image.

Transformation and Upgrading

In the transformation of the manufacturing sector， new business modes are emerging， and a batch of enterprises are becoming market leaders. The new businesses involve the supply chain management services and network marketing systems established by traditional manufacturers in their efforts to meet the requirements of the Internet Plus and big data era.

Some Chinese enterprises hold the view that its safer to realize industrial transformation and upgrading based on the existing manufacturing industries by increasing efficiency and added value， which would entail little risk and low costs， and would have an immediate effect. In contrast， to replace the traditional manufacturing industry with emerging industries would mean high risks and considerable costs. Transformation and upgrading doesnt mean phasing out traditional industries， but taking them as the basis for new growth.

The transformation of Chinas manufacturing industry features an extension at both ends of the value chain， from the manufacturing sector to the service sector， from solely manufacturing businesses to overall coverage of the industrial chain. Enterprises can also take service innovation as an effective approach to improve competitiveness. They can bond their products with related services and provide additional services to keep up with the requirements of modern industries.

While advancing transformation， Chinese enterprises have voluntarily absorbed the concept of green development. Competitive Chinese manufacturing enterprises are universally adopting sustainable development strategies with increasing awareness of health and safety， and environmental protection. These industries are endeavoring to increase output， save resources， and cut energy consumption by developing a circular economy， advancing green production， refining production processes， and adopting green materials and technologies.

Innovation and brand development have become priorities in Chinese business. Enterprises are attaching more importance to technical innovation in a bid to improve their core competitiveness by increasing yearly input in this regard， which strengthens research and development of core technology and advances industrialization of their technical achievements. Meanwhile， numerous enterprises have begun to put a premium on formulating brand strategies and setting up brand management systems in order to increase their brand added-value and soft power.

Chinese enterprises are also making moves to expand their product lines and business fields by participating in developing industrial standards and expanding business channels. Most of them are succeeding in striking a balance between growth rate and quality， and short-term and long-term development.

To create sustainable value and improve labor productivity through transformation and upgrading has become the universal pursuit of top Chinese enterprises. Moreover， individual enterprises transformation and upgrading provide the foundation for the country to realize overall reform. In this process， product structure is being gradually optimized via constant improvement in innovation capability. Chinas efforts in energy saving and emission reduction have shown notable results. Regions that have taken the lead to realize industrial transformation have seen their economic growth shift from investmentdriven to consumption-driven.

Becoming a World Manufacturing Power

Transformation from within has become imperative for Chinese manufacturing. Meanwhile， the Chinese government has introduced a slew of measures to encourage and support enterprises to realize transformation. However， in this process， Chinese manufacturing firms have encountered difficulties which require the country to create a new economic and institutional environment to smooth the way for industrial transformation and development. This necessitates a new economic index system and evaluation system. The transformation also requires government macro control and guidance to shift the focus from economic to social regulation. The government should create a stable policy environment that helps enterprises formulate long-term goals and plans.

Globally， the world financial crisis pushed countries to attach more importance to manufacturing. Major developed economies have in succession rolled out policies and strategies to propel industrial development and boost and upgrade manufacturing. For example， the U.S. has implemented a reindustrialization strategy to revitalize manufacturing. Meanwhile， Germany， France， Britain， and Japan have also forged similar strategies to enhance their manufacturing sectors. Various countries seek commanding positions in the new round of scientific， technical， and industrial revolution. This is the world background against which Chinas manufacturing sector will speed up its transformation and upgrading， and promote core competitiveness.

In 2010， China regained its position as a major manufacturing nation. However， compared with its world advanced peers， Chinas manufacturing industry is big， but not strong， and still has a wide gap to make up in such areas as technical innovation， industrial foundation， resource use efficiency， informationization level， development quality， and product quality. Meanwhile， in the lowend manufacturing field， competition between developing countries is becoming fiercer.

To cope with the multiple pressures from the technical revolution， changing industrial patterns， and greater competition， China unveiled its “Made in China 2025”strategy and specified its guiding principle of “innovation as the driving force， quality first， green development， optimizing structure， and relying on talents” for transformation. The strategy， a new move taken by China to catch up with the new trend of world manufacturing development and cope with industrys more competitive ethos， outlines Chinas path and direction for its future development.

“Made in China 2025” serves as Chinas first 10-year action plan in its efforts to build the country into a manufacturing power， which is expected to be realized by 2049. Then “Made in China” will shake off its past burden associated with large-scale production of cheap products， and be endowed with new connotations of innovation， quality， and efficiency.

New Opportunities

Advancing to a manufacturing power will not only spell opportunities for Chinas manufacturing sector， but also bring about development prospects for other countries. Under the new normal of Chinas economic development， China is shifting its focus from heavy reliance on investment and export to being domestic consumptiondriven. Therefore， Chinas manufacturers and service providers are paying more attention to consumers increasingly high demands for products and services. As a manufacturing power， China will appear as a new-type world factory featuring low energy consumption， higher environmental protection standards， higher manufacturing efficiency， and higher quality assurance， benefiting more consumers in more countries.

Meanwhile， to shape itself into a world manufacturing power is also an important move by China to cope with global challenges， including climate change， and conscientiously perform its responsibility in global governance. Chinas industrialization is unprecedented in the world considering the scale of the process and the sheer number of citizens influenced. The West has expressed doubt about whether Chinas resources and environment can support the countrys industrialization and modernization. In fact， China is blazing a trail towards industrialization via unremitting cooperation efforts between the government and businesses.