The State Council approved the plan for the revitalization of the textile industry and equipment manufacturing sector
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Beijing, February 4, CGTN News (Reporter Jiao Ying) – Premier **of the State Council presided over an executive meeting of the State Council today (4th), during which the plan for the restructuring and revitalization of the textile industry and equipment manufacturing sector was reviewed and approved in principle. The meeting held that the textile industry is a traditional pillar of China’s national economy as well as an important industry for people’s livelihoods; it also possesses significant international competitive advantages. It plays a vital role in prospering the market, expanding exports, creating employment opportunities, increasing farmers’ incomes, and promoting urbanization. To accelerate the revitalization of the textile industry, it is necessary to focus on independent innovation, technological upgrading, phasing out outdated technologies, and optimizing industrial layout. This will enable structural adjustments and industrial upgrading, while strengthening the industry’s role in supporting employment and benefiting farmers, thus facilitating the transformation of China’s textile industry from a large-scale sector to a high-quality one. First, it is necessary to coordinate the domestic and international markets. Actively expand domestic consumption, develop new products, explore rural markets, and promote the use of industrial textiles. Expand diversified export markets and stabilize international market share. Second, it is necessary to strengthen technological transformation and the development of independent brands. Within the new central investments, special funds will be allocated to provide targeted support for technological advancements in industries such as spinning and weaving, printing and dyeing, and chemical fibers. These funds will help promote the industrialization of high-tech fibers, enhance the level of self-sufficiency in textile equipment, and foster well-known domestic brands with international influence. Third, it is necessary to accelerate the phasing out of outdated production capacity. Establish and improve entry requirements, and phase out outdated production processes and equipment that are highly energy-intensive and cause significant pollution. Preferential support is provided to leading key enterprises that acquire and restructure struggling companies. Fourth, optimize the regional layout. The eastern coastal areas should focus on developing textile products with high technical content, high added value, and low resource consumption. Promote and guide textile and apparel processing enterprises to relocate to the central and western regions, and establish production bases for high-quality cotton yarn, cotton cloth, and cotton textiles in Xinjiang. Fifth, it is necessary to increase fiscal, tax, and financial support. Raise the export tax rebate rate for textiles and clothing from 14% to 15%, and provide credit support to enterprises with strong fundamentals but facing temporary operational and financial difficulties. Increase support for small and medium-sized textile enterprises, encourage guarantee agencies to provide credit guarantees and financing services, and reduce the burden on these enterprises. The central government, local authorities, and enterprises all need to increase their purchases of cotton and reeled silk. The meeting noted that the equipment manufacturing industry is a strategic sector that provides technical equipment for various industries in the national economy. It features high interconnectivity, strong employment-generation capacity, and is technology- and capital-intensive; it serves as an important guarantee for industrial upgrading and technological progress, as well as a reflection of overall strength. To accelerate the revitalization of the equipment manufacturing industry, it is necessary to rely on **key construction projects to carry out large-scale efforts to achieve self-sufficiency in major technical equipment** ； By increasing investment in technological upgrades, enterprises can enhance their independent innovation capabilities and significantly improve the quality of basic components and manufacturing processes ； Accelerate corporate mergers and restructurings as well as product upgrades, promote the optimization and upgrading of the industrial structure, and comprehensively enhance the competitiveness of the industry. First, by relying on key projects in areas such as efficient and clean power generation, ultra-high voltage power transformation, mining of coal and metal ores, natural gas pipeline transportation and liquefaction storage, high-speed railways, and urban rail transit, it is necessary to achieve the domestic production of key products in a targeted manner. Second, it is necessary to promote equipment automation in conjunction with key projects in major industries such as steel, automotive, and textiles. Third, it is necessary to improve the technical standards of supporting products such as large-scale cast and forged parts, basic components, processing aids, and special raw materials, in order to strengthen the foundation for industrial development. Fourth, it is necessary to advance structural adjustment and transform the mode of industrial growth. It supports the joint restructuring of key enterprises in equipment manufacturing, with the aim of developing large enterprise groups equipped with capabilities in general engineering contracting, system integration, international trade, and financing. Accelerate the improvement of the product standard system and develop modern manufacturing service industries. The meeting called for making full use of the VAT reform policy to promote technological advancement in enterprises ； Allocate special funds for industrial revitalization and technological upgrading within the new central investments ； Establish a risk compensation mechanism for the use of China’s first domestically produced sets of equipment ； Increase export credit limits to support the export of equipment products ； Encouragement is given to the process of introducing, digesting, absorbing, and then re-innovating; for certain key components and raw materials that are truly necessary to be imported, tariffs and value-added tax on imports are exempted ； Strengthen enterprise management and employee training, improve production organization methods, and enhance production efficiency and product quality ； Promote industry-led integration of industry, academia, and research; encourage research institutions to enter enterprises; and support enterprises in building and strengthening their R&D teams. ========================================================================= Does that mean that the purchase of imported equipment will decrease in the future???? Buy from China??
No, it’s to revitalize the equipment manufacturing industry. It refers to improving the level of domestic mechanical equipment. In the long run, an improvement in domestic manufacturing capabilities will inevitably lead to a decrease in orders from abroad. In the 1980s, televisions, refrigerators, and washing machines had to be imported; even mobile phones from 10 years ago were imported. Now, all of these products are manufactured domestically and are exported in large quantities. It is believed that over time, instruments, automatic control equipment, automobile parts, computer components, machine tools, and so on will be produced in large quantities domestically, thereby significantly reducing reliance on foreign sources. However, this requires a process, and that process may take 5 to 10 years.
We have a long way to go. By looking at our neighbors, we can see the gap we have in the manufacturing sector. The State Council has been making great efforts for many years to revitalize the equipment manufacturing industry. We need practical innovation and technical expertise – that is the way forward for this industry. It requires at least one generation of dedicated effort and hard work. Reposting someone else’s post to warn us...................... Japan holds leading technology in the following fields. Superconducting technology: Japan has begun researching superconducting shinkansen, with speeds expected to reach 500 kilometers per hour. Leading companies include: Hitachi, Toshiba, Nippon Sharyo, Mitsubishi Heavy Industries, etc. Materials technology: NEC, Toshiba, Hitachi, Furukawa Electric, Kobe Steel, Sumitomo Electric, Tokyo Electric Power, and so on ； Nanotechnology: High-speed communication technology, NEC, Hitachi ； Next-generation DVD technology: SONY ； Toshiba ； The next generation of DVD technology: Hitachi ； Flat-screen display technology: Canon, SONY, Futaba Electronics ； Silicon technology: Tokyo Microelectronics, Nikon ； MEMS: Mitsubishi Electric, Sharp,** ； Universe: Ishikawajima-Harima Heavy Industries ； Kawasaki Heavy Industries, Mitsubishi Heavy Industries ； Toshiba, NEC, Mitsubishi Electric ； In the traditional industries, the current global landscape is as follows: in the steel sector, the leading company is one from Luxembourg, followed by a Dutch company, with New Japan Steel in third place ； Fourth is JFE Steel (Japan) ； China’s Baosteel ranks sixth (a joint venture with Japan) ； Chemicals: Mitsubishi Chemical is in fifth place. The top four are divided between the United States and Germany ； Asahi Kasei is in ninth place. Cars: GM is currently in first place, but it is likely to be overtaken by Toyota, which is in second place ； Nissan 8th ； Honda Ninth ； Home appliances: The top 15 positions are all occupied by Japanese companies: **, Hitachi, Toshiba, Sharp, and Mitsubishi Electric round out the top five ； Semiconductors: The semiconductor company formed through a joint venture between Hitachi and Mitsubishi ranks fourth, with Intel at the top of the list ； In the communications sector: NTT holds a dominant position. It is generally believed that the process for new technologies goes through a stage from research to maturity, and a second stage from maturity to application. The duration of the second phase is 10-15 years. In other words, if one wants to apply a new technology now, it must have been matured 10 years earlier; otherwise, it cannot be used. Japan is planning to build superconducting Shinkansen trains; in other words, its research in the field of superconductivity was already advanced ten years ago. In certain fields, Japan’s strong rival remains the United States. Occasionally, some established European companies take the lead in terms of sales volume. In the foreseeable future, China is unlikely to become a rival to Japan, as it is insignificant in both traditional fields and new technologies. In all the aforementioned industries, based on the top 15 companies, only one Chinese company’s name can be seen: Baosteel, which is a joint venture that uses Japanese technology. Last edited by Hunter on 2009-2-13 16:24]