China contributes to more than a third of global production, driven by domestic demand for various products
A former Chinese industry minister said China still has at least 30 years left to become the industrial superpower, despite having the most complete industrial supply chains in the world.
Over the past few years, China has become the largest industrial country in the world, contributing more than a third of global production, driven by domestic demand for various products, from cars to manufacturing machinery.
But its industries ’heavy reliance on high-tech US components, such as semiconductors, presents a strategic weakness.
“The basic capabilities are still weak, the basic technologies are in the hands of others, and the risk of taking a painful blow and stopping the working wheel has worsened greatly,” said Miao Wei, Chinese Minister of Industry and Information Technology for 10 years until he stepped down.
With the Chinese economy moving towards a service-dependent model and stopping factories that pollute the environment, the share of industrial production in the economy has declined.
In 2020, manufacturing accounted for just over a quarter of GDP, the lowest level since 2012.
“The ratio of industrial output to GDP is declining very early and very quickly, which not only puts pressure on economic growth and affects employment, but also opens gaps,” said Miao, who is now a member of the Chinese People’s Political Consultative Conference (the largest advisory body to the government). Security in our industries and limits the ability of our economy to face risks. “
Chinese President Xi Jinping said in November that innovation in the manufacturing sector is far from the required level, and that companies need to overcome technical “bottlenecks” to be able to fully innovate.
“The manufacturing sector in China has made great achievements in recent years, but the status of: big, not strong and inclusiveness lacking in quality, has not changed radically,” Miao said in a speech to delegates of the Political Consultative Conference at the Great Hall of the People in Beijing.
He added that many problems impede the development of the quality of Chinese industry, but the most important of which is the lack of sufficient market reforms.