Coming up Future manufacturing China Ministry of Market and Information Engineering, the most effective business regulator, has unveiled new steps to aid the development of possible production leaders.
The shift is always to strengthen the nation’s industrial and supply chains and accelerate transforming the country in to a production powerhouse, the MIIT said.
The country can strive to cultivate 10,000 small giant companies with high growth potential, advanced technologies, and a strong market competitive edge before 2025.
By then, 1,000 single-product champion enterprises and several leading enterprises with core competitiveness in the manufacturing sector will be formed, following a guideline jointly released by the MIIT and five other departments.
The ministry said the brand new move marks an integral step to spur market entities’vitality and foster the manufacturing sector’s high-quality development, which also helps forestall and defuse risks and make industrial and supply chains more self-supporting.
According to the new guideline, the nation will intensify efforts to make significant breakthroughs and support the applications of core technologies, products, and equipment, including essential parts, essential electronic components, basic software, basic materials, basic technology, high-end equipment, integrated circuits, and cybersecurity.
The newest guideline said the nation could make a big push to strengthen enterprise abilities to innovate, support the construction of innovation platforms such as, for example manufacturing innovation center and the national engineering research center, promote the development of industrial digitalization and enhance the quantities of industrial and supply chain modernization.
More efforts may also be designed to encourage qualified high-quality enterprises to go public and issue bonds, inspire other leading enterprises and single-product specialists to create research and development facilities and design centers worldwide, and persuade local governments to develop cooperation parks with foreign entities orderly manner.
The MIIT said the brand new guideline is consistent with the Outline for the 14th Five-Year Policy for Economic and Social Development and Long-Range Objectives through the Year 2035.
According to the outline, China will implement the pilot enterprise cultivation project and grow several enterprises with leadership capabilities spanning their entire ecosystem and core competitiveness.
It may also increase professional advantages for small and medium-sized enterprises and cultivate specialized and new tiny giant enterprises and single-product specialists in the manufacturing industry.
The ministry cited the Fortune Global 500 list of companies for 2020, saying an overall total of 133 Chinese companies is on the list, taking a leading role among countries on the list.
However, those companies’ average operating income and profits only account for 81 percent and 60.3 percent of the US companies’ list, respectively.
In the context of the COVID-19 pandemic that’s created grim and complicated situations in the home and abroad, new problems and challenges bedevil the development of various enterprises.
Not enough independent innovation capabilities, risks in industrial and supply chains, and a shortage of talent in the fields of technological innovation and operational management are proving to be impediments to contend with, the ministry noted.
Despite mounting uncertainties, China gets the confidence and capabilities to deepen the implementation of the manufacturing powerhouse strategy, as it features a complete industrial system, a significant number of skilled workers and engineers, developed infrastructure and logistics networks, and a vast domestic market, claimed Zhang Yuxian, manager of the Office of Financial Forecasting at the State Information Center.
Based on MIIT data, the expected annual growth rate of the added value of the high-tech manufacturing industry was 10.4 percent from 2016 to a year ago, that has been 4.9 percentage points higher than the standard annual growth rate of the added value of industrial companies with annual revenue greater than 20 million yuan ($3 million) for the five years.
Looking ahead, Zhang said more efforts should be made to market the deep integration of industrial chain and innovation chain, promote the digital and intelligent development of industrial chains, and accelerate industrial transfers to central and western elements of the country.
China’s public offering fund volume tops 22.91t yuan.
Beijing: Assets under management of public offering funds in China climbed to 22.91 trillion yuan ($3.55 trillion) by the conclusion of May, data from the Asset Management Association of China (AMAC) showed.
The quantity was up from 22.51 trillion yuan registered by the conclusion of April, following AMAC, an industry body supervised by China’s securities regulator.
China had 135 asset management companies by the conclusion of May, including 44 joint ventures and 91 domestic companies.
After May, 13 securities firms or asset management subsidiaries under securities firms, in addition to two insurance asset management companies, had obtained qualifications for the management of public offering funds, AMAC data showed.