China, at least 30 years away from becoming a “great producing power”: former minister

BEIJING (Reuters) – China is at least 30 years away from becoming a “high-power” producing nation, a former industry minister said on Sunday, despite the world’s most complete industrial supply chains.

In recent years, China has become the world’s largest producer, accounting for more than a third of global production, driven by domestic demand to produce everything from cars to industrial machines. But its industries’ heavy reliance on high-tech US products, such as semiconductors, has been a strategic weakness.

“Core capabilities are still weak, core technologies are in the hands of others and the risk of being ‘hit in the neck’ and having ‘a slipped bicycle chain’ has increased significantly,” said Miao Wei, a former minister. of Industry and Information Technology for a decade before resigning last year.

As the Chinese economy pivots toward a service-based model and polluting smoke stack factories, they are reduced, production output as part of the economy has declined. In 2020, production accounted for just over a quarter of gross domestic product, the lowest since 2012.

“The ratio of output to GDP has fallen too early and too fast, which not only influences economic growth and affects employment, but also brings security gaps to our industries and diminishes our economy’s ability to withstand risks and its competitiveness. global, ”said Miao, now a member of the Chinese People’s Political Consultative Conference (CPPCC), the government’s main advisory body.

President Xi Jinping said in November that innovation in the manufacturing industry is far from adequate, and that companies need to address “blockchain” technologies to become fully innovative.

“China’s manufacturing industry has made great strides in recent years, but the situation of being ‘big but not strong’ and ‘comprehensive but not good’ has not been fundamentally changed,” Miao said in a speech to CPPCC delegates. at the Great Hall of the People in Beijing.

There are many issues that restrict the high-quality development of Chinese production, but the most fundamental is the inadequacy of market-oriented reforms, Miao said.

While the tax burden on companies remains heavy and financial support for the manufacturing sector needs to be urgently strengthened, the lack of innovative and high-tech talent has significantly restricted the sector’s development, Miao added.

“We need to maintain our strategic determination, stay clear and understand the gaps and shortcomings deeply.”