Recently, the 2019 China Steel Market Outlook and the “My Steel†annual meeting were held in Shanghai. Wang Zhonghong, president of the China Economic Times, secretary of the party committee, and researcher of the Development Research Center of the State Council, attended the conference and delivered a keynote speech entitled "Quality Development of China's Manufacturing Industry."
Wang Zhonghong first pointed out that three days ago, the Central Political Bureau meeting studied economic work in 2019 and proposed to promote the high-quality development of manufacturing. In the context of the current downward pressure on the economy, it is necessary to promote the high-quality development of the manufacturing industry. It is the embodiment of the spirit of the 19th National Congress. We need to pay more attention to quality, efficiency and efficiency in manufacturing development.
In 2018, due to the superposition of various factors, China's manufacturing industry faces new challenges. As far as the steel industry is concerned, he said that the industry situation is good this year, and the profit growth is very fast. The profit margin is 7.5%, which is much higher than the profits of the entire manufacturing industry. However, some private enterprises and small and medium-sized enterprises in the downstream industry face some difficulties in their operations.
Then, he pointed out that the proportion of industrial added value to GDP has declined over the years, and the growth rate of manufacturing industry has continued to decline from September 2017 to November 2018. It is expected that the growth rate of manufacturing industry in 2019 will be in a reasonable range and stable operation. The growth rate of large-scale industrial added value is estimated to be around 6%, and the growth rate of the manufacturing industry is relatively stable.
Subsequently, he said that manufacturing investment has continued to rise this year, from 3.8% in the first quarter to 9.5% in January-November, and the equipment manufacturing industry, which accounts for one-third of the industry, is 0.5 percentage points faster than in January-October. Among them, the general equipment manufacturing industry, special equipment manufacturing industry, electrical machinery manufacturing industry, metal manufacturing industry and other contributions are among the top, indicating that China's manufacturing transformation and upgrading is actively underway.
He believes that next year's infrastructure supplements, promotion and a series of national policies will benefit the steel industry. However, some industries have slowed down, such as the automobile manufacturing industry's profit fell by 5.4% year-on-year, and real estate investment may fall, which may also drag down the development of the steel industry.
Overall, the profit growth of China's industrial enterprises in 2018 is mainly driven by the upstream and midstream industries. From January to October, the new profits of industrial enterprises above designated size were mainly from steel, oil exploration, petroleum processing, building materials and chemical industries. The total contribution rate of the five industries to the profit growth of industrial enterprises above designated size was 75.7%, but continued in the later period. There are certain difficulties.
Subsequently, he mentioned that in the report of the 19th National Congress of the Communist Party of China, high quality development has been proposed to adhere to quality first, efficiency first, and supply-side structural reform as the main line to promote economic development quality change, efficiency change, power change, and improvement. Total factor productivity will continuously enhance China's economic innovation and competitiveness.
Finally, in terms of the high-quality development of China's manufacturing industry, Wang Zhonghong put forward four suggestions: First, follow the trend and grasp the three major trends of manufacturing development in the new era; second, adhere to the new development concept and closely integrate the implementation of national strategy with reality. The third is to strengthen innovation and enhance the driving force for manufacturing development; the fourth is to optimize the business environment and create a good ecological environment for the healthy development of the manufacturing industry.
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