Enhancing High-Tech Manufacturing Competitiveness

The high-tech manufacturing sector plays an essential role in the industrial economy and is a significant contributor to national economic development. Figures released for October indicate a robust performance, with the value added by high-tech manufacturing rising by 9.4% year-on-year. Moreover, during the first three quarters, this sector saw a 6.3% increase in profit, outpacing the average growth of large-scale industry by 9.8 percentage points and contributing 1.1 percentage points to the overall profit growth in the broader industrial sector. These figures underscore the sector's resilience and its vital support role for industrial profit increases.

Strengthening the development of the high-tech manufacturing industry plays an instrumental role in stabilizing the cyclical fluctuations of the industrial economy. Compared with traditional manufacturing, high-tech manufacturing showcases distinctive features: it requires higher thresholds in product production, possesses elevated technical content, and yields substantial added value, along with a strong market demand. Consequently, its cyclical fluctuations tend to be less pronounced, allowing for consistent growth and profitability in most cases. Accelerating the development of high-tech manufacturing is not only crucial for enhancing innovation capacity but also serves to improve the overall profitability and efficiency of industrial enterprises. As the share of high-tech manufacturing in industrial production increases, it enhances efforts to lift overall industrial growth and profitability while resisting cyclical upheavals.

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Continuous innovation is paramount for the sustainability and effectiveness of high-tech manufacturing. The more cutting-edge technological innovations appeal to market needs, the greater the potential for substantial profits. Hence, fostering innovation ability and deliberately avoiding uniformity are vital; this ensures that industry products retain high added value and strengthen core competitive advantages.

However, it is essential to acknowledge that the development of China’s high-tech manufacturing industry still faces several challenges due to factors such as the industry’s evolving environment and internal innovation processes. Firstly, there is a general weakness in both domestic and international demand, compounded by rising raw material prices and operational costs. While high-tech manufacturing typically exhibits strong resilience and profit creation capacity, it is not immune to these pressures, as evidenced in sectors like pharmaceuticals and instrumentation. Secondly, there are still deficiencies in China regarding the advancement of its industrial foundation and product innovation capabilities. Recent years have seen a rise in anti-globalization sentiments, unilateralism, and protectionism, adversely affecting innovation activities. Moreover, challenges such as insufficient independent innovation capacities, ineffective technology outcome transformations, and a lack of significant developmental momentum demand urgent solutions. Thus, it is critical to adopt a multifaceted approach to reinforce the leadership role of high-tech manufacturing in advancing high-quality economic development.

Enhancing the innovation environment is fundamental for invigorating the development of this sector. Key steps include reinforcing the status of enterprises as main actors in technological innovation and creating an integrated innovation ecosystem that bridges large, medium, and small enterprises along the upstream and downstream of the industrial chain. Furthermore, the mobilization of leading technological enterprises can foster collaborative task-oriented innovation consortia to bolster the adaptability of research outcomes from the initial development stages. It is also necessary to reform the mechanisms governing scientific research management, establish systems that allow researchers to dedicate their efforts wholly to scientific inquiry, and optimize the distribution mechanism for gains from scientific achievements. There should be provisions for more state-owned enterprises meeting specific criteria to engage in diverse forms of mid-to-long-term incentives tailored to innovation.

Implementing measures to stabilize supply and prices while reducing costs is also critical. Ongoing efforts to monitor the supply and pricing of essential products are vital, enabling businesses to establish sensible expectations and arrangements for their production and supply chains, which, in turn, facilitates price stability within reasonable bounds across various commodities. The focus on cost reduction work should encompass lowering land costs for enterprises while developing a diverse supply system that includes long-term leasing, leasing before sales, and flexible lease terms. Moreover, advancing intelligent manufacturing initiatives, encouraging businesses to accelerate their digital and smart transformations, is pivotal in improving operational efficiencies and minimizing operational costs.

Expanding domestic demand to promote a smooth economic cycle creates broader market opportunities for high-tech manufacturing. Efforts to foster a nationally unified large market must be intensified to unleash market potential. The effective execution of strategies aimed at expanding domestic demand, optimizing investment structures, and increasing investment support for high-tech manufacturing will drive advancements in high-end, intelligent, and sustainable manufacturing development, ultimately addressing gaps in key sectors.