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Improving Manufacturing
China needs to improve its manufacturing industry by narrowing the gap between upstream and downstream enterprises
 NO. 42 OCTOBER 18, 2018

According to many domestic chip manufacturers, this niche market calls for greater efforts in independent research and development. Both upstream and downstream enterprises in the industrial chain are still developing in an unbalanced manner, lacking design and manufacturing capabilities.

The key to solving the manufacturing conundrum is closely integrating production, employee development, and research. The focus of China's economy is shifting from high-speed growth to high-quality and sustainable development. It is imperative to not only improve the quality of production but the whole manufacturing system.

The gap between upstream and downstream enterprises in the industrial chain should be narrowed to bring together technologies, the manufacturing process, and products to actualize.

In a bid to achieve coordinated industrial development, application platforms are especially important for domestic independent research and development technologies. Depending too heavily on fully fledged foreign technologies will hinder domestic development. Although the concern of some enterprises that innovative local products are not dependable enough seems reasonable, relevant policies and support are required to reduce the innovation costs of enterprises and provide innovative products to larger markets.

The fractured and changing global economic and trade landscape also calls for more cooperation between domestic enterprises. Against such a backdrop, the development of Chinese companies is more closely affiliated with the global market. Therefore, Chinese enterprises need to develop a coherent and harmonious process to achieve common progress.

(This is an edited excerpt of an article published in People's Daily on October 8) 

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