Strong foundational base vital for manufacturing

Editor's note: China has released a five-year plan to accelerate the upgrading of its industrial foundation capabilities, marking another step toward building an innovation-driven manufacturing powerhouse. People's Daily Overseas Edition spoke to Xue Yuan, an associate researcher at the center for strategic studies in the Chinese Academy of Engineering, to shed light on the document. Below are excerpts of the interview. The views don't necessarily represent those of China Daily.

The plan prioritizes basic products and generic technologies as essential components of the country's industrial foundation capabilities. Basic products include components, materials and electronic parts that form the "foundation" of industry chains.

For instance, electronic components are vital for a range of sectors. These components are quintessential basic products. The performance and quality of these electronic components directly determine the performance and quality of downstream systems.

Generic technologies are those used across multiple industries and are often described as the "technological foundation" that connects basic research with industrial application. These technologies can be used in many industries but no single enterprise can develop them alone because they require substantial investment and have slow returns and significant spillover effects.

In recent years, China has alleviated its weak industrial foundation by launching several projects. These initiatives have enhanced its industrial foundation capabilities, transforming numerous fundamental components, manufacturing processes and materials from "nonexistent to existent" and from "existent to excellent".

However, China still faces certain challenges in innovating its industrial foundation. For example, the supply of high-quality, personalized and complex key components and foundational software remains insufficient. The production of some specialized sensors for major equipment still depends on imports and some domestic industrial software cannot support advanced technologies and processes.

To transition from being chain-based to matrix-based efforts must be strengthened to advance foundational products in key industry chains and accelerate breakthroughs in critical and generic foundational products. This will drive the manufacturing industry to better adapt to new productive forces.

The industrial foundation encompasses various facets, including technological innovation, enterprise cultivation, standardization, quality, intellectual property and the supply of production factors. It also requires harnessing societal strengths and concentrating effective resources.

Ensuring the stability and smooth operation of industry and supply chains also demands the cultivation of distinctive industrial foundation clusters and small and medium-sized enterprises with prominent strengths and international competitiveness.

The plan emphasizes encouraging leading enterprises in the industrial foundation sector to integrate industry chain resources and build world-class companies. Additionally, it aims to strengthen the development and capabilities of SMEs specializing in niche areas, fostering "little giant" companies, high-tech enterprises and single-champion manufacturers, thereby creating an ecosystem of innovation and collaboration spanning enterprises of all sizes.

Technical standards are crucial for enhancing industrial foundational capacities. The plan outlines targeted actions to reinforce standardization planning and organizational development, enhance the application and effectiveness of standards, promote their internationalization and align them with patents in a collaborative manner.