New | China aims for ‘new industrial revolution’, but is it ready for one? Analysts say no
Beijing endeavours to combine manufacturing upgrade with technological innovation, but experts say the sector is far from ready
China's Premier Li Keqiang has called for a “new industrial revolution” – upgrading traditional manufacturing through technological innovation – to revive the sputtering economy, but analysts say the country is still a long way from achieving that.
Governments at all levels should explore technical reform and product innovation, Li said as he noted slowing industrial growth at a State Council meeting this week.
Integrating the “Internet Plus” strategy – Beijing’s push for more online start-ups and new technology in traditional sectors – with the move to improve the manufacturing sector would prompt a “new industrial revolution”, Li was quoted in a government statement as saying.
Because in China, fewer factories have realised automation than in Germany, the Chinese have a longer way to go
He cited the example of an enterprise in Dalian, Liaoning province, that asked 280,000 engineers on an online platform to offer technical upgrade solutions for 30,000 types of machinery.
Li stressed creating employment through industrial upgrading, CCTV reported on Thursday.
The premier’s remarks came as industrial output growth slowed to 6.1 per cent year on year in August – a small improvement from July’s 6 per cent but lower than June’s 6.8 per cent.
Beijing has stepped up infrastructure spending to stem the slowdown. The National Development and Reform Commission on Thursday said it had approved six infrastructure construction projects totalling 68.5 billion yuan (HK$83.5 billion) on top of four railway projects given the green light this week.
But analysts say it will take time for China to find new growth areas robust enough to offset its traditional industries’ decline.