On the 21st of October, Zhang Yunming, the Vice Minister of the Ministry of Industry and Information Technology (MIIT), provided an overview of significant developments aimed at advancing a new model of industrialization during a press conference held by the State Council Information OfficeThis event addressed several key topics, including measures to stabilize industrial growth, the cultivation of new pathways for national high-tech zones, and initiatives to create green intelligent computing centers.

The Role of Manufacturing in China's Economic Future

Zhang emphasized that in 2024, the MIIT will steadfastly uphold the critical goal of achieving new industrializationThe ministry envisions a significant enhancement of productive forces, driving high-quality economic progress while achieving new advancements and outcomes

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Forecasts indicate that in 2024, the output value of large-scale industrial enterprises is expected to grow by 5.8% compared to the previous year, representing a 1.2 percentage point increase from 2023. Total industrial output is projected at a staggering 40.5 trillion RMBFurthermore, China’s manufacturing sector has maintained its position as the world's largest for 15 consecutive years, with the industrial and information sector contributing over 40% to the nation's economic growth, serving effectively as a stabilizer in the economy.

As part of the strategy moving forward, the MIIT will focus on ensuring that existing policies and newly introduced measures have tangible effects on the economic landscapeThis includes launching a new round of ten key initiatives aimed at stabilizing growth in pivotal industries while enhancing support for major industrial provinces and cities

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More refined strategies to promote orderly industrial transfers are set to be developed, facilitating the growth of industries with unique advantages across different regions, thereby enhancing contributions to the overall industrial economy.

Additionally, the MIIT plans to devise a working plan aimed at maintaining a sensible proportion of manufacturing investment, with a push for large-scale equipment upgrades and the promotion of "trade-in" programs for consumer goodsThis aligns with plans for the 14th Five-Year Plan period, focusing on introducing substantial investment projects to further strengthen the industryThe MIIT's initiatives will reinforce the country’s efforts to modernize its industrial landscape by enhancing product variety, improving quality, and building a reputable branding strategy in the consumer goods sector, fostering a collective of premium Chinese consumer goods.

A collaborative approach with relevant departments is also part of the agenda to encourage market-oriented mergers and acquisitions, propelling high-quality enterprises to scale up their operations and strengthen their market presence.

Developing New Pathways in National High-Tech Zones

Director of the Monitoring and Coordination Bureau at the MIIT, Tao Qing, shared insights regarding the progression of national high-tech zones

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By 2024, the plan is to expedite the establishment of first-class high-tech industrial parks, creating hubs for technological and industrial innovationIn the 11 months leading up to 2024, these national high-tech zones managed to achieve an industrial output value of 28.7 trillion RMB, which marks a growth of 4.4% year-over-year, with total profits amounting to 1.9 trillion RMB, constituting around 30% of the national total.

Tao stated that next, the MIIT aims to guide these national high-tech zones to effectively capitalize on both "high" and "new" aspects, aiming for them to become models for innovation-driven development, leaders in new productive force advancement, and pioneers in high-quality economic growth.

Specific strategies will revolve around bolstering industrial technological innovation capacities

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The MIIT will implement new measures to cultivate pathways to nurture high-tech zones, supporting the development of trial verification platforms and high-capacity incubators within these zonesThese efforts are geared towards strengthening primary industries and encouraging local enterprises to undertake significant national science and technology projectsMoreover, plans to upgrade certain provincial development zones to national high-tech status will be encouraged, with conditions being stipulated to encourage these zones to develop world-class high-tech industrial parks.

Currently, national high-tech zones house about 30% of the country’s high-tech firms, approximately 40% of specialized and new "little giants," over 60% of unicorn companies, and numerous firms listed on the Sci-Tech Innovation Board.

When it comes to supporting small and medium-sized enterprises (SMEs), Zhang noted that the MIIT will expedite the revision of the “Regulations on Ensuring Payment to SMEs.” The ministry is set to launch digital empowerment initiatives for SMEs, aiming to support over 30 pilot cities by 2025 and to identify 100 new characteristic industry clusters among SMEs.

Efforts will also target the establishment of mechanisms to promote the growth of specialized new SMEs, including the anticipated launch of the second phase of a national SME development fund, as well as the cultivation of public service platforms that will provide high-quality, efficient services to these enterprises, thereby fostering their development into specialized and innovative enterprises.

Implementing Policies for High-Quality Development in Environmental Protection Equipment Manufacturing

Zhang stated that the MIIT is prioritizing the promotion of green manufacturing as a crucial undertaking in advancing modern industrialization, fully enforcing energy-saving and carbon-reducing measures

The transformation towards ecologically-friendly industrial practices is becoming increasingly significant, showcasing results through specific targets described as “four increases and three decreases.”

The "four increases" refer to enhancements in the number of national-level green factories, which are projected to increase by 2 percentage points compared to last yearFurthermore, the comprehensive utilization rate of industrial solid waste is expected to grow by 1.2 percentage points, the utilization rate of retired power batteries is anticipated to rise by 33%, and the variety of electrical and electronic products complying with China’s RoHS control standards is set to increase by around 10% year-over-year.

Conversely, the "three decreases" reflect a continuous decline in energy consumption per unit of industrial output in key sectors like steel, cement, and glass

Furthermore, the intensity of major pollutants emitted in the industrial sector is projected to fall, alongside a reduction in water usage per unit of industrial added value.

Zhang highlighted that these advancements in green industrial development were achieved while maintaining stable industrial growth, suggesting that promoting a low-carbon green economy is a necessary aspect of high-quality economic development and a significant opportunity for new industrialization.

In the next steps, the MIIT intends to bolster top-level design for policies aimed at accelerating the green and low-carbon development of the manufacturing sectorThis includes a twin focus on “existing stock transformation” to hasten the green transition of traditional industries, as well as enhancing the promotion and application of cutting-edge green low-carbon technology and equipment

Plans for establishing zero-carbon factories and zero-carbon industrial parks are also in the pipeline, alongside the cultivation of additional green manufacturing benchmarks.

Simultaneously, there will be efforts to “increase inventory and strengthen growth,” focusing on nurturing and expanding the green low-carbon industry.

Policies to facilitate high-quality development in the environmental protection equipment manufacturing sector will be issued, with targeted efforts in key industries such as metallurgy and petrochemicals aimed at actively exploring clean low-carbon hydrogen applications, optimizing and strengthening the green intelligent computing industry chain, and establishing green intelligent computing centersFurthermore, there will be an emphasis on tackling new solid waste challenges, specifically retired batteries and used photovoltaic modules, by advancing regulatory frameworks and enhancing recycling and comprehensive utilization systems to encourage safe and efficient recycling practices.