Constructing a new development pattern of mutual promotion of domestic and international double cycles
Release Date:2020-08-12
Source:China Machine Tool Industry Association
Views:3457

On July 31, the party branch of China Machine Tool Industry Association launched a learning activity. Mao Yufeng, secretary of the party branch of the association, gave a special party class to learn and implement the spirit of General Secretary Xi Jinping's important speech at the entrepreneurs forum on July 21. The following is the main content of the special party class.

   ——Media Department


The association should have a deep understanding of the content of General Secretary Xi Jinping’s speech at the entrepreneur’s forum, and correctly understand its spiritual essence, which will play a strategic guiding role in our work in the industry. The quasi-work positioning and focus are fundamentally followed.


General Secretary Xi emphasized that since the reform and opening up, my country has gradually established and continuously improved the socialist market economic system, the market system has continued to develop, and various market entities have grown vigorously. The new crown pneumonia epidemic has had a huge impact on my country's economy and the world economy, and many market players in my country are facing unprecedented pressure. The main body of the market is the power carrier of the economy. To protect the main body of the market is to protect the social productivity. We must do everything possible to protect the main body of the market and stimulate the vitality of the main body of the market. Carry forward the entrepreneurial spirit, promote enterprises to play a greater role, achieve greater development, and accumulate basic strength for economic development.


The meeting pointed out that market players are the main participants in my country's economic activities, the main providers of employment opportunities, and the main promoters of technological progress. They play a very important role in the development of the country. The meeting emphasized that it is necessary to do a good job in the “six stability” work and implement the “six guarantees” tasks. All regions and departments have issued a series of policy measures to protect and support market entities. Policy support must be increased to stimulate the vitality of market entities and enable the majority of the Market entities can not only survive normally, but also achieve greater development.


The "six stability" were put forward at the Politburo meeting in August 2018. They are stabilizing employment, stabilizing finance, stabilizing foreign trade, stabilizing foreign investment, stabilizing investment, and stabilizing expectations. The "six guarantees" were proposed at the Politburo meeting on April 17, 2020. They are to ensure employment, basic people's livelihood, market players, food and energy security, industrial chain supply chain stability, and grassroots operations. The "six guarantees" are stage goals, specific requirements, and important measures. They are the focus of macro-control and delineate the lifeline of economic security. First, we must implement the policy of benefiting enterprises; second, we must create a market-oriented, legalized, and international business environment; third, we must build a pro-Qing political and business relationship.


The meeting pointed out that if entrepreneurs want to lead enterprises to overcome current difficulties and move towards a more brilliant future, they must promote entrepreneurship, continuously improve themselves in patriotism, innovation, integrity, social responsibility and international perspective, and strive to become a new era of construction. The new force for developing the pattern, building a modern economic system, and promoting high-quality development. Responsible for the country, share the worries for the country, be an explorer, organizer, and leader of innovative development, set an example of integrity and law-abiding, assume social responsibilities, and work through difficulties together. Based on China, looking at the world, and achieving better development in a higher level of opening up.


Xi Jinping emphasized that in the current external environment of rising protectionism, downturn in the world economy, and shrinking global markets, we must concentrate our efforts on doing our own affairs, give full play to the advantages of the domestic super-large-scale market, and gradually form a domestic and international market. The new development pattern of mutual promotion of dual cycles will enhance the modernization of the industrial chain and supply chain, vigorously promote technological innovation, accelerate the research on key core technologies, and create new advantages for future development.


With the domestic big cycle as the main body, it is by no means a closed door to operate, but by leveraging the potential of domestic demand, making the domestic market and the international market better connected, and making better use of the two international and domestic markets and two resources to achieve a stronger economy. Continuous development. From a long-term perspective, economic globalization is still a historical trend, and the division of labor and cooperation between countries and mutual benefit and win-win situation are the long-term trends. We must stand on the right side of history, continue to deepen reforms, expand opening up, strengthen open cooperation in the field of science and technology, promote the construction of an open world economy, and promote the construction of a community with a shared future for mankind.


Next, I will talk about some of the key points emphasized by General Secretary Xi Jinping, and talk about my understanding and experience.


1. Build a new development pattern in which the domestic and international double cycles promote each other


"Domestic cycle is the main body, domestic and international double cycles promote each other" is what General Secretary Xi Jinping said during the two sessions this year. He emphasized it when meeting with members of the economic circles in the Council of Political Affairs Association. It was held at the meeting of the Standing Committee of the Political Bureau of the Central Committee on May 14, 2020. Proposed for the first time on. The main considerations are: the world today is undergoing major changes unseen in a century, and a new round of technological revolution and industrial transformation is booming. In the past, under the external environment of the in-depth development of economic globalization, the "two ends" of the market and resources played an important role in the rapid development of my country's economy. At present, due to limited and unstable international exchanges, it is necessary to seek development in an uncertain world environment. In the current external environment of rising protectionism, downturn in the world economy, and shrinking global markets, we must give full play to the advantages of the domestic super-large-scale market, and through the prosperity of the domestic economy, the smooth domestic cycle adds impetus to my country's economic development and promotes the recovery of the world economy. It is necessary to improve the modernization level of the industrial chain and supply chain, vigorously promote technological innovation, accelerate the tackling of key core technologies, and create new advantages for future development.


This is the Party Central Committee’s assessment of the situation and clearly stated that it is necessary to resolutely implement the strategy of expanding domestic demand. This is the need to cope with the impact of the epidemic, to maintain the long-term sustainable and healthy development of my country’s economy, and to meet the people’s growing needs for a better life.


The advantage of our country's economy is that it is internally recyclable. The prerequisites are: (1) Have the world's most complete and largest industrial system, strong production capacity, and complete supporting capabilities; (2) Have more than 100 million market players and more than 170 million highly educated or possess various professional skills (3) A large-scale domestic demand market formed by 1.4 billion people including more than 400 million middle-income groups; (4) my country is in a stage of rapid development of new industrialization, informatization, urbanization, and agricultural modernization. Investment The demand potential is huge.


my country's socialist basic economic system is not only conducive to stimulating the vitality of various market players, liberating and developing social productive forces, but also conducive to promoting the organic unity of efficiency and fairness, and the continuous realization of common prosperity. Therefore, we must firmly grasp the strategic basis of expanding domestic demand, make production distribution, circulation, and consumption more dependent on the domestic market to achieve a virtuous circle, clarify the strategic direction of supply-side structural reforms, and promote the improvement of total supply and total demand. Achieve dynamic balance at a high level.


It is necessary to accelerate the construction of a complete domestic demand system, vigorously promote technological innovation and other innovations, accelerate the promotion of strategic emerging industries such as digital economy, intelligent manufacturing, life and health, and new materials, and form more new growth points and growth poles, and gradually form A new development pattern in which domestic and international double cycles promote each other with the domestic big cycle as the main body.


Why must the strategy of expanding domestic demand be implemented?


First, to cushion the threat of trade protectionism brought about by the obstruction of globalization, especially the epidemic has made protectionism more serious. Some countries have promoted the localization and regionalization of manufacturing policies. While facing the pressure of supply chain industrial chain transfer, China is still The threat of technology decoupling threatens the security of China's supply chain.


Second, we must expand domestic demand to help form a complete domestic demand system, make up for the shortcomings of the supply chain industry chain, and maintain the security of the industry chain supply chain. It must be pointed out that this is not a temporary response, but China's long-term development strategy, which has only been strengthened under the current situation. Get rid of export dependence, promote the "rebalancing" of the economic structure, and form a development model driven by domestic demand.

Meeting domestic demand is not simply how to expand domestic demand and maintain economic operation and growth, but to focus on the establishment of a domestic demand system, including supply-side structural reforms, income distribution reforms, financial and tax reforms, commercial consumption environment reforms, circulation reforms, and knowledge Reforms in a series of fields such as the protection of property rights, so as to build a complete domestic demand system.


"Dual cycle" refers to a new development pattern with internal cycle as the main body and mutual promotion of internal and external cycles. Internal circulation is the foundation: including industrial circulation, market circulation, economic and social circulation, etc. There are currently two representative views on the understanding of the latest concepts and judgments of the double cycle.


First, the central government’s bottom-line thinking in response to changes in the external environment after the epidemic is also the worst plan to some extent, and it is helpless. It represents the latest and most severe prejudgment of the central government on the international and domestic economic development situation.


The second is the major judgments and important strategic choices made by the central government based on the domestic development situation and grasping the general trend of international development. It is not only a realistic requirement to promote high-quality economic development, but also an active and strategic choice for major changes in the world unseen in a century.


I agree with the second point of view.


2. Build China's supply chain configuration in a dual-cycle development pattern


Regardless of the point of view, only when the safety of the industrial chain and supply chain is guaranteed can a new development pattern with internal circulation as the main body be constructed. Where does globalization go in the post-epidemic era? How to think about the supply chain configuration of China's machine tool industry in the construction of the new development pattern of "double cycle"?


We know that the current round of globalization that has developed so far is a globalization led by the United States after World War II. It is an active globalization that countries around the world have actively joined. China's reform and opening up in 1978, and joining the "World Trade Organization" in 2001, actively embraced the world and actively integrated into globalization. China is the biggest beneficiary of this round of globalization and has gradually changed the world economic map. In 2009, China became the world's largest commodity exporter; in 2010, it surpassed the United States and became the world's largest manufacturing country; in 2011, it surpassed Japan and became the world's second largest economy.


In the current round of economic globalization, China's industrial chain supply chain has been closely connected with the global industrial chain supply chain. How to maintain the existing supply chain, especially how to upgrade the level of the supply chain, is a major and urgent strategic issue that our industry should think about.


In terms of supply chain allocation theory, I personally prefer the relevant theories of the new supply economics school. The main points are as follows:


First, economic benefits are the primary consideration for the global economic layout of the supply chain, but ideology will also affect the configuration of globalization and the transformation of social and institutional structures under globalization.


Second, high-tech can dominate the layout of the global supply chain. Behind high-tech is international capital. High technology without capital endorsement and investment cannot form an industry.


Third, the most important factors that need to be weighed in international capital investment are: supply chain allocation status (economic globalization); common belief (value globalization); supporting factors supporting the global operation order (globalization of the rule system).


Fourth, capital is chasing profit and safety, and the decision-making process is difficult and complicated. Whether China will not be marginalized by the global supply chain in the future is not only an apparent economic issue, but also a deep-seated political issue.


The current level of the global status of China's domestic supply chain configuration has two characteristics. One is that the overall low-end supply chain has obvious advantages; the other is that it participates in part of the middle and downstream links of the high-end supply chain. It not only has the entire industrial chain of labor-intensive low-end supply chain, but also participates in the component production (midstream participation) and assembly (downstream participation) of the capital-intensive and technology-intensive high-end supply chain.


China occupies a dominant position in the low-end supply chain, with leading companies, cost advantages, and a broad consumer market are important reasons for international capital to deploy China. The low-end supply chain is characterized by low technology content, low capital threshold, labor-intensive, and short supply chain. It is relatively easy to do the entire supply chain, so it is not too difficult to relocate and copy. The substitution is very strong, and tariffs may squeeze out the cost advantage. Now there is a trend of shifting to Vietnam, India and other Southeast Asia, and ASEAN is also diverting. Our industrial chain supply chain.


In the high-end supply chain, my country is located in the middle and lower reaches, dominated by international capital, lacks dominant power, and is often suppressed by upstream companies. The upstream of the high-end supply chain focuses on the R&D and innovation capabilities of technology. Technology is the core element that determines the configuration of the global high-end supply chain. There is no one. This is the vane of the international capital layout. In terms of my country's current technical level, if we rely solely on spontaneous market mediation, it will not be able to affect the layout of the international high-end supply chain. Therefore, the development of high-end supply chain upstream industries driven by technological breakthroughs should become a major strategic force for my country's future supply chain layout.


Independent research and development and mastering of core technologies have become the only way for China's manufacturing industry to climb into the high-end supply chain. This will be a protracted battle, an arduous system engineering, and is related to the effectiveness of high-quality development. In terms of research and development, we can take advantage of the system of "strengthening the whole country", supplemented by relevant support policies, and at the same time we should explore a market-oriented operation path and method. In response to this epidemic, how to reconfigure the global supply chain industry chain has become a hot spot. There are two main opinions in China: one is that the global supply chain, especially that part of the production capacity that does not correspond to the Chinese consumer market, will gradually move out of China; the other is that the supply chain will gather in China.


my country is constantly advancing a higher level of opening up, such as the opening up of the financial industry. The reconfiguration of the global supply chain is not just as simple as the profit on the economic account. In the post-epidemic era, we must attach great importance to the globalization of the value system and the globalization of the rule system, comprehensive analysis, serious research and judgment, and active response. In the manufacturing industry Complete the "double cycle" goal during the upgrade.


Finally, take a sentence from General Secretary Xi at the entrepreneurs forum as a requirement and spur to our work: "Concentrate your efforts to do your own thing."