Report of the State Council on Promoting Supply-side Structural Reform and Accelerating the Transformation and Upgrading of Manufacturing Industry

On April 24, 2017, at the 27th meeting of the Standing Committee of the 12th National People's Congress, the Minister of Industry and Information Technology, the Standing Committee of the National People's Congress of Miao : The State Council commissioned, and now promotes the supply side structure. We will report on the reform and accelerate the transformation and upgrading of the manufacturing industry. Please consider it.

I. Overall Work Situation Manufacturing is the main body of the real economy and the main battlefield for technological innovation. Building a manufacturing industry with international competitiveness is the only way to enhance China's comprehensive strength, safeguard national security, and build a world power. The Party Central Committee and the State Council attach great importance to the development of manufacturing. The 18th National Congress of the Communist Party of China pointed out that it is necessary to promote the healthy development of strategic emerging industries and advanced manufacturing industries. The Fifth Plenary Session of the 18th CPC Central Committee emphasized that it is necessary to implement "Made in China 2025" and accelerate the construction of a manufacturing power. The State Council executive meeting focused on the supply side structural reform and the implementation of the "Made in China 2025" work. All departments and places have conscientiously implemented the decision-making arrangements of the Party Central Committee and the State Council, and promoted supply-side structural reforms and manufacturing transformation and upgrading in a solid and orderly manner.
Since the reform and opening up, especially since the new century, China's manufacturing industry has achieved remarkable achievements. The overall scale has expanded rapidly, the ability to innovate has been significantly enhanced, and the industrial structure has continued to optimize. During the "Twelfth Five-Year Plan" period, China's manufacturing industry achieved an average annual growth rate of 9%, which became an important pillar to resist the global financial crisis and maintain a stable macroeconomic development. Especially since the implementation of "Made in China 2025" in 2015, under the strong leadership of the Party Central Committee and the State Council, the company has promoted the supply-side structural reform as the main line, and the National Manufacturing Powerful Country Construction Leading Group has given specific guidance and promotion, and various work has achieved positive results. Issued 11 special planning guidelines for the implementation of “Made in China 2025” to promote the introduction of a number of supporting policies and measures. All provinces (autonomous regions and municipalities) have formulated implementation plans or action plans, and horizontally linked, vertically integrated, and coordinated policy systems have basically formed. . In 2016, the added value of manufacturing industry increased by 6.8% year-on-year, laying a solid foundation for the national GDP to achieve a growth rate of 6.7%.

(1) A new breakthrough was made in the structural reform of the supply side of the manufacturing industry.
First, actively and steadily resolve excess capacity. Established an inter-ministerial joint meeting mechanism to resolve the excess capacity of steel and coal and ease development work, refine the implementation of the action plan, carry out special supervision, and resolve the crude steel production capacity of more than 65 million tons and coal production capacity of more than 290 million tons in 2016, and complete the annual target of excess quality assurance. The overall resettlement of employees was stable and orderly, and the allocation of bonus funds was basically in place. Innovate industry management methods and classify “zombie companies”. Vigorously promote industry mergers and acquisitions, industry concentration and corporate competitiveness are effectively improved, market supply and demand relationship is gradually improved, and efficiency is promoted to promote transformation, establish a fair market order, improve expectations and stability, prevent economic and social risks, and explore long-term development paths. The effectiveness of the aspect has gradually emerged.
The second is to promote industrial enterprises to reduce costs and increase efficiency. We will comprehensively push forward the pilot program for the reform of the camp, implement the deduction policy for R&D expenses, and promote the clean-up reform of fees, cancel and reduce the administrative fees of enterprises, strengthen the information sharing between banks and enterprises, guide the financial industry to increase support for the manufacturing industry, and steadily promote the investment and loan linkage business. Pilot, improve industrial chain finance and reduce financing costs. Deepen the reform of “distribution suits” and break down various hidden barriers such as “glass doors” and “ceilings”. Efforts will be made to promote mass entrepreneurship and innovation, and support large manufacturing companies, large Internet companies, and basic telecommunications companies to establish a dual-creation platform. Establish a guarantee compensation mechanism in six provinces (cities), develop government-backed guarantee institutions, and promote the development of small and medium-sized enterprises.
The third is to fill the shortcomings of the physical product quality. Organize special campaigns to increase varieties, improve quality, and create brand “three products” to improve the industry's ecology and boost consumer confidence. Approved 23 industrial product quality control and technology evaluation laboratories, issued 55 national standards for consumer goods and 208 industry standards. Promote the merger and reorganization and quality traceability of infant formula milk powder industry.

(2) New progress has been made in the development of advanced manufacturing industries and the cultivation of new kinetic energy.
First, deepen the industrial innovation capability and system construction. Improve the manufacturing standards system and innovation network, and promote the construction of manufacturing innovation centers at the national and provincial levels. At present, the National Power Battery Innovation Center has been established, and it has extensively absorbed upstream and downstream enterprises in universities and industrial chains, and operates in accordance with the market-oriented model of “Company + Alliance”. The National Additive Manufacturing Innovation Center is under construction, and 19 provincial-level manufacturing innovation centers have been cultivated and built. Through innovative institutional mechanisms and integration of factor resources, the manufacturing innovation center will become an important carrier for key common technology research and industrial application demonstration.
The second is to continuously consolidate industrial infrastructure capabilities. Continue to implement industrial strong foundation projects, focus on core products and components, advanced basic processes, key basic materials, industrial technology foundations and other industrial "four basics" short board, carry out key products and process demonstration applications, in some key products and processes Have achieved positive results.
The third is to improve the level of intelligent manufacturing. Based on the principle of “commonity first, urgent use first”, the overall framework of the intelligent manufacturing standard system was proposed, and 81 experimental verification projects were launched. In order to realize the intelligentization of major products and complete sets of equipment, we will promote the popularization of smart factories as an entry point, organize the implementation of intelligent manufacturing projects, and carry out pilot demonstrations of intelligent manufacturing. After preliminary analysis, the production efficiency of the pilot demonstration projects increased by more than 30% on average, the energy utilization rate increased by more than 10%, and the operating costs decreased by more than 20% on average. The digitalization, networking and intelligence of the manufacturing industry continued to increase.
The fourth is to promote the development of high-end equipment innovation. Upgrade the equipment as the focus of "Made in China 2025", actively promote the industrialization of major equipment, and achieved a number of landmark achievements in the fields of aerospace, rail transit equipment, high-end CNC machine tools, ships and marine engineering equipment. China Aviation Engine Group was successfully established. High-precision CNC gear grinding machines and other products ranked among the world's first. The C919 large passenger aircraft is about to make its first flight. The Long March No. 5 carrier rocket, manned space flight and the world's first quantum satellite launch successfully. The unmanned submersible was successfully launched, and the China Standard EMU successfully completed the world's first 420km/h convergence test.
The fifth is to further promote green manufacturing. Create a green manufacturing system centered on green standards, green factories, green products, green parks and green supply chains. Implement green manufacturing projects, build 44 Beijing-Tianjin-Hebei industrial resources comprehensive utilization demonstration projects, and promote the establishment of 51 national low-carbon industrial parks. The introduction of industrial energy-saving management measures, special supervision of energy-saving supervision in 20 provinces, autonomous regions and municipalities. In 2016, the energy consumption of industrial added value of enterprises above designated size fell by 5.47% compared with the previous year, and water consumption decreased by 6%.

(3) New achievements have been made in the upgrading of traditional industries.
The first is to improve the technical reform and upgrading policies and measures. In-depth implementation of innovation-driven development strategy, promote mass entrepreneurship, innovation, and give full play to China's talent resources. Issued the Notice on Implementing Major Engineering Packages for Manufacturing Upgrading and Renovation, and issued the “Investment Guide for Technical Transformation and Upgrading of Industrial Enterprises” to guide enterprises to use new technologies, new processes, new materials and new equipment to upgrade and upgrade traditional industries, and promote industrial technology and The proportion of advanced production capacity continues to increase. During the “Twelfth Five-Year Plan” period, the labor productivity of all employees increased by 12% annually, and new materials such as lithium-ion battery materials, nano-materials, high-performance alloys and composite materials were industrialized, and petrochemical major equipment, high-speed EMUs, CNC machine tools, The manufacturing capabilities of high-end equipment such as smart meters and marine engineering have increased significantly.
The second is to actively guide the social investment industry. The issuance of the "Notice on Further Doing a Good Job in Private Investment" will promote the healthy development of private investment as an important part of the supply-side structural reform, special supervision and rectification, and guide local improvement work. From 2010 to now, China's industrial investment has grown from 13 trillion yuan to 22.8 trillion yuan, and manufacturing investment accounted for 79.5% of industrial investment.
The third is to continuously optimize the industrial space layout. Deeply implement the three regional strategies and coordinate the development of the four major sectors. Give full play to the enthusiasm of the central and local governments, and carry out the establishment of the "Made in China 2025" pilot demonstration cities (groups), and strive to form a batch of experience that can be replicated and promoted. The “Made in China 2025” sub-provincial and municipal guidelines will be revised on an annual basis. We will further promote the construction of the national new industrialized industrial demonstration base and promote the formation of a new pattern of manufacturing development based on local conditions and regional linkages.
The fourth is to open up a new situation of manufacturing “going out”. The use of bilateral and multilateral cooperation mechanisms will strengthen strategic docking and industrial cooperation with Germany, the United States and Russia. Relying on the “Belt and Road” construction, it signed a capacity cooperation agreement with more than 20 countries, and led the end-product production capacity cooperation and major engineering general integration general contracting to drive the industrial chain upstream and downstream enterprises, advanced technology standards, and supporting services. Clustering "going out". Properly deal with trade frictions in industries such as steel and safeguard the rights and interests of China's manufacturing enterprises.

(4) The integration of manufacturing and information technology has reached a new level.
The first is to deepen the development of the integration of manufacturing and the Internet. Issued the "Guiding Opinions on Actively Promoting "Internet +" Actions and "Guiding Opinions on Deepening the Integration of Manufacturing and Internet Development". Through policy guidance and efforts of all parties, the Internet has been widely integrated into all aspects of R&D and design, key products and equipment intelligence. The pace of development has accelerated. In 2016, the penetration rate of digital R&D tools of Chinese enterprises reached 61.8%, the networking rate of digital production equipment reached 38.2%, and the numerical control rate of key processes reached 33.3%. A number of new developments based on new applications and new models have accelerated and emerged, and the top-level design of vehicle networking and industrial Internet development has been completed.
The second is to continuously improve the level of military and civilian integration. Promote the two-way transfer of military and civilian technology, promote the interactive sharing of military and civilian resources, continue to promote the construction of the national military-civilian integration public service platform, and publish the annual catalogue of "military transfer to the people" and "civilian participation in the army." In 2016, the “Military Transfer to the People” catalogue included 160 advanced technologies in six fields, including smart manufacturing, information technology, new materials and new energy. The “Public Participation Army” catalogue included 155 technologies and products in 14 key areas including command and control. The first China Military and Civilian Technology Innovation Application Competition was held.
The third is to accelerate the development of service-oriented manufacturing. Implement a special campaign for service-oriented manufacturing, initiate the selection of service-oriented manufacturing demonstrations, and guide manufacturing enterprises from production-oriented manufacturing to “manufacturing + service” and “product + service”. With the establishment of a national industrial design center as a starting point, efforts will be made to improve industrial design capabilities and levels. Guide and support supply chain management, information technology services, energy conservation and environmental protection services to accelerate development.
China's manufacturing industry has the foundation and conditions for building and manufacturing a strong country. However, compared with advanced countries, there is still a big gap. The overall characteristics are large but not strong, and the scale-based development model has not been fundamentally reversed. The specific performance is as follows: First, the overall innovation ability is weak, and the manufacturing innovation system is not perfect. Second, the overall level of product quality and technical standards is not high, and brand value has not been fully reflected. Third, the efficiency of resource and energy use is low, and the problem of environmental pollution is more prominent. Fourth, the adjustment of industrial structure has yet to be deepened. Fifth, the breadth and depth of integration of informationization and industrialization is not enough.
In addition, due to the multiple factors at home and abroad, the downward pressure on the current manufacturing industry continues to increase, and the rising cost constitutes a realistic challenge for the development of the manufacturing industry. The prices of traditional elements such as resources, environment, labor, and land are rising, and it is a long way to go to reduce the institutional transaction costs of enterprises. At the same time, China faces the "two-way squeeze" of high-end reflow and low-end transfer in the world manufacturing pattern. Since the international financial crisis, developed countries have implemented the "re-industrialization" strategy, trying to revive the manufacturing industry and seize the opportunities for development. Many emerging countries have also raised the development of manufacturing to a national strategy.
China's manufacturing industry is in a period of transition from large to strong, and the long-term fundamentals have not changed, but face multiple challenges of speed shifting, structural adjustment and kinetic energy conversion. Whether it can smoothly realize the strategic shift from quantity expansion to quality improvement, and make the manufacturing industry become an important support for China's basic modernization. It is necessary to firmly implement "Made in China 2025" and always insist on developing the manufacturing industry. Give full play to the decisive role of market allocation resources and better play the role of government. Make good use of the existing foundations and advantages of the manufacturing industry, and promote the transformation and upgrading of traditional industries and the cultivation and development of emerging industries. Implement a higher level of open strategy and accelerate the cultivation of new advantages in manufacturing international competition.

Second, the next priority work to accelerate the construction of a manufacturing power, we must firmly establish and implement the new development concept, adhere to the development quality and efficiency as the center, and promote the strategic transformation of manufacturing from quantity expansion to quality improvement as a supply-side structure. The main direction of sexual reform, adhere to market leadership, government guidance and independent innovation, open cooperation, revitalize manufacturing, especially advanced manufacturing, and conscientiously implement "Made in China 2025", based on the current, long-term perspective, overall promotion, key breakthroughs, small Victory is a big win.

(1) Optimizing the development environment of the manufacturing industry and enhancing the stamina for the development of the manufacturing industry.
The first is to boost effective investment. We will improve the manufacturing policy system for building a strong country and make up our mind to adopt comprehensive policy measures to improve the private investment environment and stimulate the investment vitality of enterprises. Accelerate the market-oriented reform of production factors, deepen the reform of monopoly industries and the reform of state-owned enterprises. Improve the accelerated depreciation policy for fixed assets and make full use of industrial investment funds to support the development of advanced manufacturing. Implement a new round of major technological transformation and upgrading projects in manufacturing. The second is to reduce the cost of the enterprise. Deepen the reform of “distribution suits”, standardize the fees charged by enterprises, and reduce the cost of institutional transactions. We will improve the land supply system, support the use of existing construction land to develop advanced manufacturing industries, streamline and merge “five insurances and one gold”, and reduce the cost of labor and logistics for enterprises. Simplify the VAT rate structure and create a simple, transparent and fair tax environment. The third is to improve the investment and financing environment. Implement financial guidance to support the construction of a strong country, guide financial institutions to increase financial support for manufacturing, and explore new ways of manufacturing investment and financing. Develop multi-level capital markets and enrich direct financing tools. Restrictive measures to reduce foreign investment in manufacturing. The fourth is to coordinate the “introduction” and “going out”. Improve the level of information services, improve the support system, separate policies, and coordinate the “going out” and orderly transfer of domestic industries. Dynamic adjustment of major technical equipment import tax policies and related catalogues.

(2) Accelerate structural adjustment and optimization and improve supply quality and level.
The first is to further promote capacity. Adhere to the principles of market economy, improve the accuracy of policies, and comprehensively use the market, economy, rule of law and necessary administrative means to promote market clearing. According to the "Government Work Report", the target for capacity reduction in 2017 is about 50 million tons of steel and more than 150 million tons of coal. The disposal of “zombie enterprises” will be taken as a solution to the reorganization of the “zombie enterprises” in the steel and coal industries. Encourage superior enterprises to increase mergers and acquisitions and strengthen the overall quality and core competitiveness of the industry. The second is to accelerate the development of advanced manufacturing and foster the growth of emerging industries. Implement high-end equipment innovation and development projects to realize the engineering and industrial application of a number of major equipment. Give play to industrial policies to promote competition and support the development of new generation information technology, new energy vehicles, biotechnology, new materials, virtual reality, artificial intelligence and so on. Accelerate the commercialization and application of new technologies, actively cultivate emerging markets, promote new manufacturing models, and promote the transformation of production methods into flexibility, intelligence and refinement. Fully implement green manufacturing and build a green manufacturing system that is efficient, clean, low-carbon, and recycling. Vigorously develop service-oriented manufacturing. The third is to comprehensively improve the quality of consumer goods. Carry out a special campaign of “increasing varieties, improving quality, and creating brands” in the consumer goods industry, continuously improving the brand value of the company and the overall image of China's manufacturing, and creating a “hundred-year-old shop”. Improve quality standards and accelerate the construction of quality brand professional services and information sharing platforms. Strengthen the protection and management of intellectual property rights, research and improve the bidding system, and curb vicious competition at the expense of quality. The fourth is to optimize the rational distribution of productivity. Implement the "Made in China 2025" sub-provincial and municipal guidelines, deepen the construction of the "Made in China 2025" pilot demonstration city and industrial demonstration zone, and guide local development of advantageous industries. Optimize the corporate merger and reorganization policy environment and build a group of internationally competitive manufacturing enterprise groups. Support the development of “specialized and special” for small and medium-sized enterprises.

(3) Complementing the shortcomings of scientific and technological achievements and enhancing core competitiveness.
The first is to improve the national manufacturing innovation system. Open up the innovation chain, industry chain, capital chain, and policy chain, and focus on solving the problem of the lack of key common technologies in key areas, and form an efficient three-dimensional innovation system. We will cultivate manufacturing innovation centers such as new materials and robots, and launch the top-level design of the network layout of national manufacturing innovation centers. The second is to strengthen key core technology research. In-depth implementation of industrial strong foundation projects, the implementation of key common technology industrialization application demonstration. We will continue to implement major science and technology projects, launch major projects such as “Science and Technology Innovation – 2030” for research and development and application of key new materials, intelligent manufacturing and robots, and strengthen special coordination. Implement a number of key projects such as additive manufacturing and laser manufacturing, digital diagnosis and treatment equipment, and intelligent agricultural equipment. The third is to accelerate the transformation of the application of scientific and technological achievements. We will implement the Law on Promoting the Transformation of Scientific and Technological Achievements and various supporting systems, and improve the market-oriented service system for the transformation of scientific and technological achievements. Continue to organize the implementation of manufacturing information technology projects, "CNC generation" mechanical product innovation application demonstration project. Cultivate high-value patents and promote the rational distribution of intellectual property rights. The fourth is to implement the strategy of deep integration of military and civilian development. Establish and improve the research and production system of small core, large cooperation, specialization and open weapons and equipment. The fifth is to strengthen the construction of the talent team. Formulate the annual plan for the “Manufacturing Talent Development Planning Guide”, dock the strategic tasks and key areas of manufacturing and strengthening the country, improve the multi-level and multi-type talent training system, optimize the manufacturing talent supply structure, and accelerate the management and management talents, entrepreneurial innovation talents and technical skills talents. Construction.

(4) Promoting the integration and development of manufacturing and information technology.
The first is to implement intelligent manufacturing engineering. Break through a number of key technical equipment, strengthen the support capabilities of industry system solutions, and promote the integration of digital, networked, intelligent technologies and intelligent equipment in the entire process of the enterprise and the entire industry chain. Construct a national intelligent manufacturing demonstration zone, and promote the construction of smart factories and digital workshops. The second is to deepen the development of the integration of manufacturing and the Internet. Support large manufacturing companies, Internet companies and telecom operators to build an open "double-created" platform based on the Internet. We will further promote the construction of a two-in-one integration management system, and foster a new model of “Internet + Manufacturing” that promotes networked collaborative R&D and manufacturing, large-scale personalized customization, and service-oriented manufacturing. The third is to accelerate the development of the industrial Internet. Formulate and implement the development strategy of industrial Internet, transform and upgrade traditional networks, and build an industrial Internet with low latency, high reliability and wide coverage. Actively promote the construction of service platforms such as industrial cloud, industrial big data, and industrial e-commerce to promote the development of new business models and application models. Accelerate the development and industrialization of industrial software. The fourth is to focus on improving the level of industrial information security. Accelerate the construction of a sound industrial Internet security system. Improve network security laws and regulations and management systems, strengthen network infrastructure security protection and data security management, implement industrial control system security assurance capacity enhancement projects, and guide enterprises to develop security security systems.

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