Premier Li discusses industry upgrade with 50 Chinese firms

Source:Global Times Published: 2017/8/29 21:53:39

Chinese Premier Li Keqiang held talks with representatives from 50 Chinese manufacturing firms on Friday, discussing ways to solve the problems China's manufacturing industry is encountering amid the domestic economic transformation and upgrading process, according to a statement on the website of the State Council, China's cabinet, on Monday.

The firms that participated in the meeting included State-owned enterprises such as train manufacturer CRRC Corp, electronics supplier TCL Corp and Baowu Steel Group as well as private firms like  drone maker DJI-Innovations and carmaker BYD Co, according to the statement.

Li said at the meeting that China's manufacturing industry is large but not strong, as it is still positioned at the low end of the global supply chain.

"Why is it that China ranks first in the world in terms of issuing industrial licenses, but the country only represents about 1 percent of the number of international standards led and designed by domestic firms?" Li asked, stressing that China should prioritize a manufacturing upgrade under the "Made in China 2025" initiative, a 10-year plan.

One of the solutions is innovation, especially in corporate management mechanisms, such as the introduction of the "Mass Entrepreneurship and Innovation" model, which has helped Haier achieve quick gains in revenue and profits, Zhang Ruimin, chairman of Haier, said at the meeting.

Li also urged manufacturers to set up an incentive mechanism that attracts and trains talent. "The key to industrial upgrading is talent, in which China has an advantage and great potential," Li said.

Li referred to a foreign company that pays the same salary to highly skilled technical specialists as the general manager. "Can domestic firms have such courage and ambition?" he asked.

At the meeting, Li also called on relevant government departments to cancel unnecessary approval processes, further cut transaction costs and strengthen protection of intellectual property, so as to create an environment that is conducive to innovation and upgrading.

"Government agencies should also study financial policies that encourage manufacturing industry upgrading," he said.


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