News released on February 16: Jin Zhuanglong, Secretary of the Party Leadership Group and Minister of the Ministry of Industry and Information Technology (MIIT), published a signed article in Qiushi Journal. He noted that China will accelerate the transformation and upgrading of traditional industries, vigorously advance equipment renewal and technological renovation for enterprises, push faster mergers, acquisitions and restructuring in key sectors including iron and steel, raise industrial concentration ratios, and elevate the standing and competitiveness of traditional industries within the global division of labor.

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Accelerating the Advancement of New Industrialization

The Report to the 20th National Congress of the Communist Party of China set the goal of basically realizing new industrialization by 2035. It stressed that we must keep our economic development focused on the real economy, advance new industrialization, and speed up efforts to build a manufacturing power. The Central Economic Work Conference convened in December 2022 highlighted the need to accelerate the development of a modern industrial system, and outlined arrangements for the growth of China’s manufacturing and digital economy. This has charted the course and provided fundamental guidelines for the development of China’s industry and information technology sector. We must fully understand and accurately grasp the great significance, prevailing context and missions of advancing new industrialization, truly align our thinking and actions with the spirits of the 20th National Congress of the CPC and the Central Economic Work Conference, and earnestly implement the decisions and arrangements of the Party Central Committee to deliver tangible results.

I. Fully Recognize the Profound Significance of Advancing New Industrialization

General Secretary Xi Jinping emphasized that for the industrial sector, realizing the Chinese Dream means accelerating new industrialization. Advancing new industrialization is a strategic deployment made by the Party Central Committee with Comrade Xi Jinping at its core, based on the overall cause of the Party and the country and aimed at building a great modern socialist country in all respects. It carries profound practical significance and far-reaching historical implications.

Advancing new industrialization is an inevitable requirement for realizing Chinese modernization. Industrialization is the prerequisite and foundation of modernization. Since the founding of the People’s Republic of China, especially since reform and opening up, we have completed in a few decades an industrialization process that took Western developed countries hundreds of years, creating miracles of sustained rapid economic growth and long-term social stability. Since the 18th National Congress of the CPC, under the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, China’s industrial system has become more complete, its industrial chains more integrated, the overall strength, quality and efficiency of industries have kept improving, and industrial innovation capacity, competitiveness and risk resilience have risen markedly, with new industrialization picking up speed significantly. History and reality both show that to pursue industrialization in a large developing country with over 1.4 billion people, we must not only follow the general laws governing global industrialization, but also stay grounded in China’s national conditions and take a path of new industrialization with Chinese characteristics. On the new journey of the new era, new industrialization bears new connotations and features:

• It is industrialization that adheres to the reform direction of the socialist market economy, pursues high-standard opening-up, and accelerates the fostering of a new development pattern;

• It is industrialization that takes fulfilling the people’s aspirations for a better life as its starting point and ultimate goal, and promotes common prosperity for all people;

• It is industrialization that upholds high-standard self-reliance and strength in science and technology, and relies on innovation-driven development;

• It is industrialization that builds a modern industrial system and speeds up China’s ascent to the medium-high end of global value chains;

• It is industrialization that advocates harmony between humanity and nature and advances green and low-carbon development;

• It is industrialization that aligns with the new round of technological revolution and industrial transformation, and fosters in-depth integration between the digital economy and the real economy.

To advance new industrialization, we must accurately grasp its contemporary features and inherent requirements, shift development models, pioneer new development paths, and deliver fresh achievements in new industrialization to accelerate the progress of Chinese modernization.

Advancing new industrialization is the fundamental underpinning for building a great modern socialist country in all respects. The Report to the 20th National Congress of the CPC outlined a grand blueprint for building a great modern socialist country in all respects: basically realizing socialist modernization by 2035, and transforming China into a prosperous, strong, democratic, culturally advanced, harmonious and beautiful great modern socialist country by the middle of this century. To achieve this grand vision, we must substantially boost economic, scientific and technological and comprehensive national strength, secure high-standard self-reliance and strength in science and technology, establish a modern economic system, form a new development pattern, basically realize new industrialization, informatization, urbanization and agricultural modernization, and basically achieve national defense and military modernization. Industry is the bedrock of a country’s comprehensive national strength, and a vital pillar for building China into an agricultural, sci-tech, quality, aerospace, transport, cyber and digital power, as well as a world-class military. For a major country like ours, without robust industry, we can hardly attain the goal of building a great modern socialist country. We must accelerate new industrialization, speed up building a manufacturing power, strengthen, optimize and expand the real economy, and lay a solid material foundation, technological support and spiritual impetus for building a great modern socialist country in all respects.

Advancing new industrialization is an urgent imperative to forge competitive strengths as a major country. The real economy is the foundation of China’s development, a key pillar for building strategic advantages for future growth, and the bedrock for securing the initiative in international economic competition. Since the founding of the People’s Republic of China, especially since reform and opening up, China has built a complete, independent industrial system covering all sectors, providing strong support for sustained long-term growth of the national economy and greatly boosting our confidence and capacity to cope with various domestic and external risks and challenges. In today’s world, science, technology and industry stand at the center of competition between major powers. Faced with intensifying international rivalry, we must speed up new industrialization, realize high-standard self-reliance and strength in science and technology, safeguard the world’s most complete industrial system, lift the resilience and security of industrial and supply chains, elevate China’s position and competitiveness in the global industrial division of labor, and ensure we seize the initiative in competition between major powers.

Advancing new industrialization is a strategic choice for high-quality economic development. Industry acts as the main engine of economic growth and plays a pivotal role in stabilizing the broader macroeconomic landscape. It is the primary arena for technological innovation, featuring the most dynamic innovation activities, abundant innovation outcomes, concentrated innovation applications and powerful innovation spillover effects. Statistics show that industry accounts for less than 20% of the United States’ GDP, yet 70% of its innovation activities directly or indirectly rely on industrial sectors. Industry supplies raw materials, energy and technical equipment to all sectors of the national economy, serves as a key field for meeting the dual carbon goals, and forms a vital pillar for satisfying the people’s yearning for a better life. Without high-quality industrial development, there can be no high-quality economic growth. Promoting high-quality economic development hinges largely on industry, which also poses the biggest challenges. We must accelerate new industrialization, fully, accurately and comprehensively apply the new development philosophy, foster technological progress and structural optimization and upgrading, and drive transformative shifts in the quality, efficiency and driving forces of economic growth.

II. Accurately Grasp the New Landscape Shaping the Advancement of New Industrialization

At present, profound shifts unseen in a century are unfolding across the globe, a new round of technological revolution and industrial transformation is forging ahead in depth, global industrial structures and layouts are undergoing profound readjustment, competition and games between major powers are intensifying, and the world has entered a new period of turbulence and transformation. China’s new industrialization faces a new landscape marked by both opportunities and challenges.

China stands at a critical juncture transitioning from an industrial giant to an industrial power. Since the 18th National Congress of the CPC, under the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, China has secured historic achievements in industrial and information technology development, with drastically elevated comprehensive industrial strength. China’s manufacturing value added has ranked first worldwide for over a decade, industrial structures have been further optimized and upgraded, the resilience and competitiveness of industrial and supply chains have kept rising, major breakthroughs have been made in innovation across key sectors, and enterprise competitiveness has grown remarkably. Nevertheless, China’s industry overall remains at the medium-low end of global value chains, its capacity for independent control remains insufficient, and the fundamental dynamic of being large yet not strong in industry has yet to be fully reversed. We are in a pivotal phase of transforming from a manufacturing and cyber giant into a manufacturing and cyber power.

A new round of technological revolution and industrial transformation is unfolding in depth. A new technological and industrial revolution characterized by cross-integration of new-generation information technology, new energy, new materials, biomedicine, green low-carbon industries and other sectors is booming, guiding the direction of scientific and industrial progress and unlocking massive new growth space. New-generation information technologies including the internet, big data, blockchain and artificial intelligence are making rapid breakthroughs, integrating and innovating deeply with manufacturing, triggering fundamental transformations in manufacturing production models, development paradigms and enterprise forms. Major industrial powers worldwide have rolled out manufacturing development strategies, making forward-looking plans, clarifying development priorities, strengthening government guidance and policy support to seize commanding heights of competition and secure the initiative in growth. To adapt to new trends in industrial technology and keep pace with the times, we must accelerate new industrialization, fully leverage the strengths of the new nationwide system for mobilizing resources, sustain intensive efforts in breakthroughs of core and key technologies, foster more new technologies and industries, open up new fields and tracks, and inject fresh momentum and vitality into development.

Global industrial structures and layouts are undergoing profound readjustment. At present, the restructuring of global industrial chains, reshaping of supply chains and reconfiguration of value chains are deepening continuously. Multinational corporations are shifting their supply chain layout logic from traditional cost and efficiency orientation toward greater emphasis on resilience and security, featuring new trends of localization, regionalization and diversification that drive profound shifts in the global manufacturing landscape. Meanwhile, international competition in advanced manufacturing is growing fiercer: developed economies are pushing for reindustrialization to lure high-end manufacturing back home, while emerging economies actively undertake international industrial transfers relying on cost advantages. Faced with profound global industrial restructuring, standing still means falling behind, and slow progress also means falling behind. We must accelerate new industrialization, fully leverage the institutional strengths of China’s socialist market economy, the supply strengths of the world’s most complete industrial system and demand strengths of an ultra-large domestic market, coordinate domestic and international markets and resources, rely on the domestic circulation as the mainstay while promoting mutually reinforcing domestic and international circulations, and speed up the formation of new global competitive strengths.

U.S. containment and suppression targeting China’s advanced manufacturing are escalating year by year. In recent years, the United States has ramped up suppression against China’s advanced manufacturing, creating an increasingly severe and complex external environment for China’s industry and information technology development — an obstacle we must surmount to advance new industrialization. We must balance development and security, uphold bottom-line and worst-case scenario thinking, maintain firm confidence, resolve short-term challenges while planning for long-term prospects, and focus on our own work. To accelerate new industrialization, we must accurately perceive shifts in the landscape, respond to changes in a scientific manner, proactively pursue transformation, and excel at turning crises into opportunities. We will deepen comprehensive reform, stick to innovation-driven development, speed up breakthroughs in core and key technologies, move quickly to shore up weaknesses and strengthen competitive edges, and raise the level of advanced industrial foundations and modernized industrial chains. We will expand high-standard opening-up, integrate the "going global" and "bringing in" strategies, and deepen international industrial cooperation.

III. Strive to Write a New Chapter in the Development of New Industrialization

Advancing new industrialization carries a glorious mission and heavy responsibilities, embraces broad prospects yet arduous tasks. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will fully implement the spirits of the 20th National Congress of the CPC and the Central Economic Work Conference, deeply comprehend the decisive significance of the "Two Establishments", and firmly and consciously uphold the "Two Maintenances". We will accelerate the advancement of new industrialization, anchor the goals of building China into a manufacturing and cyber power, fully implement medium- and long-term strategies for the manufacturing sector as well as the 14th Five-Year Plan for Development, take smart manufacturing as the main thrust, advance in-depth integration of informatization and industrialization, speed up the development of a modern industrial system, consolidate the industrial foundation for fostering a new development pattern, and provide robust support for building a great modern socialist country in all respects.

Push for the Optimization and Upgrading of the Industrial System

We will unswervingly develop the real economy, particularly the manufacturing sector, consolidate the strengths of our complete industrial system, keep the proportion of manufacturing in GDP generally stable, and prevent the economy from shifting from real to virtual sectors. We will accelerate the transformation and upgrading of traditional industries, vigorously advance equipment renewal and technological renovation for enterprises, promote faster mergers, acquisitions and restructuring in key sectors including iron and steel, raise industrial concentration ratios, and elevate the standing and competitiveness of traditional industries within the global division of labor. We will consolidate the leading position of advantageous industries, strengthen the full industrial chain strengths of new energy vehicles, photovoltaics, mobile communications, power equipment and other fields, and foster more name cards of "Made in China". We will nurture and expand emerging industries, focus on key areas such as new-generation information technology, new energy and new materials, intensify technological breakthroughs and commercialization of research outcomes, and build a batch of new growth engines. We will make forward-looking arrangements for future industries, enrich and improve application scenarios, cultivate industrial ecosystems, and seize commanding heights for future competition. We will strengthen the pivotal supporting role of the equipment manufacturing industry, especially high-end equipment, implement special programs for tackling key technical equipment, speed up major special projects for large aircraft and aero-engine & gas turbine, drive high-quality development of industrial machine tools, optimize and improve insurance compensation policies for the first set of major technical equipment, and accelerate the development of special equipment including high-end medical devices and advanced agricultural machinery. We will develop advanced defense science, technology and industry, and consolidate an integrated national strategic system and capacity. We will vigorously develop producer services and advance in-depth integration of advanced manufacturing and modern services.

Improve the Industrial Science and Technology Innovation System

Innovation is the fundamental driving force behind new industrialization. We will strengthen enterprises’ principal role in scientific and technological innovation, channel all types of innovation factors toward enterprises, support enterprises in boosting their innovation capacity, and fully unlock their innovation vitality. We will carry out research to tackle core and key technologies in key fields, leverage the strengths of the new nationwide system for mobilizing resources, adopt new mechanisms such as "releasing tasks to top researchers via open bidding", and speed up breakthroughs in a batch of core technologies and landmark major strategic products. We will promote in-depth integration of innovation chains and industrial chains, and build a technological innovation system with enterprises as the mainstay, the market as the guide, and close collaboration among industry, universities, research institutes and end-users. We will facilitate efficient transfer and commercialization of scientific and technological achievements, encourage in-depth cooperation between entrepreneurs and scientists, and accelerate the engineering and industrial application of research outputs. We will build a number of manufacturing innovation centers to boost the supply of generic key technologies for key industries. We will develop a high-quality manufacturing standards system, advance systematic and international layout of industrial standards, and guide industrial innovation and development through standardization. We will strengthen patent deployment in key industries, and enhance the capacity to create, utilize, protect and manage intellectual property rights in the industrial sector. We will build a contingent of innovative talents, and cultivate a group of leading industrial technological innovators and high-level innovation teams.