Actively Responding to the New Trend of the Global Distribution of the Manufacturing Industry

From March 18 to 20, China Development Forum 2017 with the theme of “China and the World: Economic Restructuring and Structural Reform” was held by the Development Research Center of the State Council in Diaoyutai State Guesthouse in Beijing. Zhang Gaoli, a member of the Standing Committee of the Political Bureau of the CPC Central Committee and vice premier of the State Council, attended the opening ceremony and delivered a speech. Scholars, experts, entrepreneurs, government officials and representatives of international organizations from home and abroad attended the opening ceremony.

Song Zhiping, chairman of China National Building Material Group, attended the forum at invitation and delivered a keynote speech at the Economic Summit with the theme of “New Trends of Global Distribution of the Manufacturing Industry”, and discussed with He Guorui, chairman of (United Technologies, Zhao Guohua, chairman of Schneider Electric, Xi Guohua, general manager of CRRC, Xu Lirong, chairman of China COSCO Shipping and Yu Yong, chairman of HBIS Group. The group discussion was chaired by US UL Company’s president Keith E. Williams.

Song Zhiping said, in terms of the global distribution of the manufacturing industry, China’s rapid rise is reshaping the global distribution of the manufacturing industry. Now developing countries are speeding up the returning of the manufacturing industry, the US again attaches great importance to the real industry, Europe proposed re-industrialization and China launched the “Made in China 2025” strategy. China’s manufacturing industry is also robustly developing, from low-end in the past to medium and high-end. On the other hand, Chinese enterprises’ tapping into the international market is inevitable. In the past 30 years, Western developed countries wanted to open the Chinese market. But nowadays, trade protectionism and counter-internationalization mentality are rising in some countries and regions. China is facing the dual pressure from the returning of the high-end business to developed countries and the transfer of medium and low-end business to countries with lower costs. Judging from the global economic development process, Chinese enterprises’ tapping into the international market is inevitable.

Song expounded the three points very important for the development trend of China’s manufacturing industry. First, China should upgrade itself from a country with a big manufacturing industry into a country with a strong manufacturing industry. In the world’s economic rebalancing process, Chinese manufacturers should take the initiative to speed up their transformation, upgrading and innovative development. Second, Chinese enterprises should deep cooperation with global advanced enterprises. Following the “One Belt, One Road” initiative, Chinese enterprises should tap into the international market with their quality equipment, technologies, standards and services. For Chinese companies, “going global” does not mean “squeezing others”, but means common development through cooperation with multinational companies. Third, “China is the factory of the world” should be changed into “Chinese factories are spread across the world”. Chinese manufacturers’ “going global” will lead to economic and employment balance. When Chinese enterprises “go global”, they should uphold the principles of “amity, sincerity, mutual benefit and inclusiveness”, take a cooperative approach, make contribution to the local economy, closely cooperate with local enterprises, and get well together with local people.

During the forum, Song was interviewed by People’s Daily and shared his ideas about the development process of China’s manufacturing industry in the past 30 years, the situation of the global manufacturing industry and the countermeasures of China’s manufacturing industry. He stressed, China is a huge market with the population of more than 1.3 billion, China’s manufacturing industry should not be hollowing, and Chinese manufacturers should consolidate themselves in the Chinese market when they consider “going global”. With emphasis re-given to the manufacturing industry, Chinese enterprises should seize opportunities, revitalize the real economy, adhere to “innovation, openness, inclusiveness and collaboration” for development, and achieve win-win results by “going global” and “attracting foreign investments”.

Since its inception in 2000, China Development Forum has been annually held for the purpose of “Talking with the World to Seek Common Development”, and now it has become an important platform for the Chinese government to have high-level communications and open dialogues with the world’s economic circle and academic circle on major issues in China’s and the world’s economic and social development.