Liu Chengyuan: Visible Made in China Strategy

Speaker: Dr. Liu Chengyuan

Source: Zhisheng Future Export Forum-Wenzhou Station

Organization: Ye Sa

In Zhisheng At the Future Wenzhou Forum, Dr. Liu Chengyuan, Chairman of Hezhong Resources 3A Consulting Company, gave an in-depth interpretation of the future development prospects and trend analysis of China's manufacturing from the perspective of experts, so that manufacturing enterprises can find future business opportunities and efforts.

Top Ten Strategies for Made in China

The "Made in China 2025 Strategy" just proposed by the Chinese government this year aims to build a great manufacturing country, and through R&D innovation, quality assurance and brand building, etc. to seek a breakthrough. The goal is to make China a manufacturing power by 2025, today we are just a manufacturing power.

▲Hezhong Dr. Liu Chengyuan, Chairman of Resource·3A Consulting Company

Large aircraft strategy. Only Airbus and Boeing are the biggest planes in the world. One in Europe, one in the United States, where should the third one be next? in China. It is very difficult to export the large aircraft strategy, but we can at least do one thing, can we build it to meet our own strong needs. China is now Airbus and Boeing's biggest customer, spending a lot of dollars a year. Such a strong demand will definitely create a huge industrial chain of large aircraft.

The Great Rail Strategy. This is the high-speed rail strategy we are familiar with. We all know that the "One Road, One Belt" and so on now, what is the first major product? It is our high-speed rail in China. Over the past decade or so, China's high-speed rail has basically been a process of introduction, learning, integration (Japanese, German and French) and transcendence. As we all know, Premier Li Keqiang is the chief salesman of high-speed rail, and it should be said that the sales situation is good. Therefore, there will be a huge demand for related parts, carriages, seats, and electrical instruments and meters supporting high-speed rail, and the opportunity is not small.

Big Energy Strategy. China's major energy sources, first of all, is nuclear power. After years of introduction, study, absorption and innovation of nuclear power manufacturing technology, our nuclear power equipment has established a competitive position in the world. The first is safety, the second is cheap, and the advantages are obvious. Of course, the future export of energy equipment, in addition to nuclear power, there are solar and wind power equipment and so on.

The Big Steel Strategy. Big Steel is a little surprised, in fact, this is the result of the overcapacity of large-scale steel production over the years. But today, it is found that the vast majority of the world's steel is made in China. When China exported its excess steel, overseas rivals suddenly discovered that China's manufacturing was too good. Judging from the situation of several iron and steel enterprises such as Tangshan Iron and Steel and Shougang Iron and Steel that we have mentored, the management level of Chinese iron and steel plants is not worse than that of Japan at all, and they are excellent.

Big space strategy. Our rocket technology and aerospace technology have been pursuing excellence and have a high status in the world. There will be a lot of room for development in the future.

Big culture strategy. The Chinese nation has a long history and has accumulated for five thousand years, forming a rich traditional Chinese culture. With the improvement of national literacy and the innovation of cultural industry, big culture will also go to the world. The first is movies. Everyone knows that the movie industry is the best in Hollywood in the United States, but there is no doubt that in 20 years, it will keep pace with, or even surpass, the United States. The second is animation. We are learning Japanese animation technology, which has begun to industrialize in Shenzhen, and this industry has begun to create our own images, our own cartoons, our own stories, and so on.

For all these cultures to go out, it depends on one condition, that is, the literacy level of our Chinese people needs to be improved. Some of us fight on planes and make a fool of ourselves overseas, which is not good for the cultural industry to go out. Therefore, I often say that the main content of the culture of a country or an enterprise is the behavior and literacy level of people. Let all of us here do our best to influence the people around us, strive to be a civilized Chinese, and contribute money to Chinese culture.

High-tech strategy. Shenzhen is a representative of domestic high-tech, and Shenzhen has received extensive attention at home and abroad in terms of technological innovation. It has a large number of high-tech enterprises growing up, and a large number of high-tech products have established a foothold in the world. Therefore, China's high-tech in the future can also be expected.

Big Securities Strategy. Everyone, pay attention, China's securities market has developed for more than 20 years. In five or ten years, it is entirely possible to surpass the United States and become the world's largest securities market, because our company's base is too large. Especially now that the country has just launched the new third board, it will become an excellent platform for cultivating first-class or super-first-class enterprises through market forces. It is said that the new third board will reach 10,000 next year, and this number will continue to expand. In this huge number of sub-enterprises, it will continue to cultivate batches of excellent enterprises.

Big money strategy. Today, when the US dollar empire dominates the world, the only possible challenge to its status may be the renminbi. Of course, it will take a hard and long process for the RMB to become the world's major reserve currency.

In addition to these manufacturing strategies, there are many more industrial categories made in China, and we are responsible for the production of most types of consumer goods in the world. One thing these manufacturing companies need to do is industrial upgrading.

Industrial upgrading strategy. Industrial upgrading includes two aspects. The first is the upgrading of management technology, and the second is the upgrading of production technology. The upgrading of these two aspects needs to be done down-to-earth by each of our enterprises. Many of the manufacturing strategies just mentioned are national actions, which will drive a large number of supporting enterprises to develop together with it. In addition, the upgrading of China's manufacturing industry, which is usually based on people's livelihood, depends on the active practice of thousands of small and medium-sized enterprises.

This is the vision of "Made in China 2025", we can see it.

Four major trends made in China

The first trend is refinement. It is also clearly stated in the "Made in China 2025 Strategy" that China's manufacturing should be refined. Our future resource efficiency must be 1x, 2x, 3x, or more. Because we are now less than one-fifth of the resource efficiency of the United States, what does that mean? The output of our individual is less than one-fifth of that of the United States, and the output of our one-hour electricity is also less than one-fifth of that of the United States. This is the gap, and we need to refine and improve it.

The second trend is informatization. We have been promoting informatization in China for 20 years, but I have seen many small and medium-sized enterprises with few computers and few people who can operate computers. It is too difficult for you to survive in the era of Industry 4.0 at this level. I remember that 25 years ago, when I joined Ricoh to work, the group had a requirement that it was mandatory to configure a computer, and every employee had to have one. If they can't do it, business leaders will be criticized. Because our Chinese companies have been doing so well in the past 30 years, we can make money no matter what we do, so we owe a lot of informatization. So if we don't learn, if we don't improve, we're really falling behind.

The third trend, automation. By replacing people with machines, the dependence on manual labor is gradually reduced.

The fourth trend, intelligence. The so-called intelligence means that through the integrated application of sensors, IT technology, the Internet and the Internet of Things, etc., the manufacturing process of the product, the product itself, distribution and after-sales service will gradually possess human wisdom. For example, we sold a piece of equipment. In the past, the customer requested to send someone to repair it after a failure occurred during use. In the future, various sensors will be pre-installed on the equipment, and the key status information of the equipment will be instantly transmitted through the Internet. , and then we inform customers when they need to do maintenance and other value-added services based on the information. I often say that in the future, manufacturing alone is not enough, and there are follow-up manufacturing services, so as to generate more value and increase the viscosity between you and your customers. Because your service is all about the details, even when to change which screw, when and where to change the oil, you will issue instructions, which is highly intelligent.

What do these four strategies require? Twelve words: down-to-earth, change with the trend, and gradually accumulate. Everyone here today is still far from 4.0, but it is not without opportunities. 4.0 is the goal of the country and our goal. We all have the opportunity, and we all work together.

(All the views in this article are from the "Outsmart Future Export Forum" jointly held by Global Sources and its leading management media "World Manager" in Wenzhou on May 21, 2015.)

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