China beefs up support for lackluster manufacturing sector
Updated: 2016-05-24 10:30
(Xinhua)
|
|||||||||
Workers on a motor vehicle production line at a factory in Qinzhou, Guangxi Zhuang autonomous region. [Photo provided to China Daily] |
Last week, three more plans were released to help the embattled sector, including encouraging technological innovation, such as intelligent machines, and funding for 10 major manufacturing projects, which will enhance competitiveness.
The country aims to achieve over seven-percent annual growth in the manufacturing sector during the 2016-2018 period, and hopes to attract 15 percent more corporate investment, which will support upgrades, during the period, according to the plans.
It also announced supportive policies for certain manufacturing industries, including ship-building, advanced equipment and general aviation.
Wu Qi, a researcher with China Minsheng Bank, said the support had been designed to shore up the traditional manufacturing sector while fostering new industries, providing better goods and services through supply-side structural reform.
These policies came after data showed that growth in China's industrial output had slowed to six percent in April, while exports and imports fell more than expected, underlining weak demand both at home and abroad.
More plans -- which will focus on software and information technology, big data, new materials, and energy-efficient and environmental-friendly industries -- are expected within the year, Xinhua-run newspaper Economic Information Daily reported Monday.
Improving the manufacturing sector is a pressing task for China, as its status as "the world's factory" has been undermined by developing nations, and it is looking to identify new engines of growth amid a slowing economy.
Moreover, rising labor costs, shrinking export demands and tighter resource and environmental constraints are weighing heavily on the manufacturing sector. It is facing pressure on two fronts: competition from mushrooming manufacturers in lower-cost developing countries and a renewed push by developed nations seeking an advantage in industrial manufacturing.
According to statistics from Oxford Economics, China's manufacturing labor cost was less than half of the United States in 2003, is now only slightly lower than the US level. However, China's manufacturing productivity, measured by output per employee, is less than one sixth of the US level.
To catch up, China last year announced the "Made in China 2025" campaign, a 10-year plan to upgrade its manufacturing capacity.
Lu Bingheng with the Chinese Academy of Sciences said compared with the United States and European nations, China still has a competitive edge because of the country's comprehensive industrial system, a huge market and a massive labor pool.
Upgrading of the manufacturing sector through industrial modernization will revitalize the sector and help sustain growth in the economy, Lu said.
- Wildfires continue to rage in Russia's Far East
- Eiffel Tower to become rental apartment for first time
- US lifts arms embargo on Vietnam
- At least 17 schoolgirls killed in boarding-house fire in N Thailand
- Russia to build first cruise liner in 60 years
- LinkedIn, Airbnb match refugees with jobs, disaster survivors with rooms
- Striking photos around the world: May 16 - May 22
- Robots help elderly in nursing home in east China
- Hanging in the air: Chongqing holds rescue drill
- 2.1-ton tofu finishes in two hours in central China
- Six things you may not know about Grain Buds
- China Beijing International High-tech Expo
- Highlights at Google I/O developers conference
- Nation celebrates International Museum Day
Most Viewed
Editor's Picks
Anti-graft campaign targets poverty relief |
Cherry blossom signal arrival of spring |
In pictures: Destroying fake and shoddy products |
China's southernmost city to plant 500,000 trees |
Cavers make rare finds in Guangxi expedition |
Cutting hair for Longtaitou Festival |
Today's Top News
Liang avoids jail in shooting death
China's finance minister addresses ratings downgrade
Duke alumni visit Chinese Embassy
Marriott unlikely to top Anbang offer for Starwood: Observers
Chinese biopharma debuts on Nasdaq
What ends Jeb Bush's White House hopes
Investigation for Nicolas's campaign
Will US-ASEAN meeting be good for region?
US Weekly
Geared to go |
The place to be |