Workers inspect their wares in a factory in China. (Photo : www.themanufacturer.com)
An industrial report released on Tuesday, Sept. 22, has revealed that the low level of innovation among Chinese manufacturers is hampering the manufacturing industry from becoming a “big” to a “strong” sector, the China Daily reported.
A report by the Liaowang Institution, a domestic research organization under the Xinhua News Agency, pointed out that several core technologies being used in manufacturing are imported.
Wu Liang, president of the Liaowang Institution, said that to become a major factor that will drive manufacturing in line with China's policy to develop the industry by 2025, innovation has to be driven by self-developed technologies.
The report was based on a survey conducted since May on 93 large manufacturing companies in the major manufacturing hubs of Shandong, Liaoning, Zhejiang and Guangdong Provinces.
"Some large manufacturing companies have not invested a lot in research and development, resulting in less competitiveness in innovation," Wu said.
Wu added that compared to developed countries, China's rate of transformation in scientific and technological achievements is about 10 percent, while developed countries has about 40 percent.
Wu said that major components and technologies in China's high-end equipment manufacturing industry are imported, citing the country's automobile industry, which relies mainly on import of automatic gearbox equipment.
"Chinese companies need to boost investment in research and development, especially amid the country's implementation of the 'Made in China 2025' strategy," Wu added.
In May, the State Council unveiled the "Made in China 2025" plan, laying out the strategies for the transition from low-end processing to more value-added production, a plan aimed to help transform China from "a factory for the world" into a world manufacturing power.
According to the plan, local manufacturers are encouraged to make technological breakthroughs in emerging industries that included numerical control tools and robotics, aerospace equipment and new-energy vehicles.
Dong Mingzhu, president of Gree Electric Appliances Co., urged Chinese manufacturers not to rely on labor-intensive manufacturing for sustained growth.
"Domestic manufacturers should introduce advanced technologies and adopt an innovative approach to drive business growth," Dong said during an industrial forum held on Sept. 22, in Zhuhai, Guangdong Province.
