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Reinventing the Nation: Made in China 2025

China should intensify efforts to implement Made in China 2025: premier
(Xinhua) Updated:2016-12-24 09:42:00


BEIJING, Dec. 23 (Xinhua) -- Chinese Premier Li Keqiang has said that more efforts should be made to implement "Made in China 2025," a plan released last year to transform China from a manufacturing giant into a world manufacturing power.

In his instruction to a Friday meeting on China's manufacturing development, Li said China will continue to streamline administrative approvals and delegate power to lower levels, improve government services and push forward taxation and financial reforms.

The country will create a sound environment for the development of advanced manufacturing sectors in the aspects of market access, distribution of essential productive factors and lowering costs, Li said.

The Made in China 2025 plan should be combined with the country's Internet Plus action plan and promotion of mass entrepreneurship and innovation to promote the positive interaction between new growth impetus and traditional sectors, the premier said.

China should also seek a higher level of smart and green manufacturing to promote medium-high level of growth, Li said.

Vice Premier Ma Kai said at the meeting that China has made headway in upgrading the manufacturing sector after the plan was unveiled last year, contributing to the sector's steady growth and profit recovery.

As manufacturing is a major part of real economy and a major field of China's supply-side structural reform, the country should continue to push forward the implementation of the Made in China 2025 plan, Ma said.

China should enhance coordination of central and local government efforts, build national manufacturing innovation centers, consolidate industrial foundation and optimize the market environment, Ma said.
 
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http://blog.euromonitor.com/2017/01...gies-reshape-global-manufacturing-sector.html
Industry 4.0: Penetrating Digital Technologies Reshape Global Manufacturing Sector
BY JUSTINAS LASINSKAS
January 28th, 2017

The traditional manufacturing process typically consists of three parties: the physical manufacturer; suppliers; and services providers. These parties are usually fairly unconnected and have independent operations, which creates a lot of inefficiency in the supply chain and turns into lost opportunities. Fortunately, development of the fourth industrial revolution, the Industry 4.0, which emphasises digital technologies, such as cloud computing and IoT (Internet of Things), is expected to decrease this inefficiency, as well as refurbish the whole manufacturing supply chain.

This article is part of the global briefing Industry 4.0: The Future Impact of the Fourth Industrial Revolution, which analyses preparedness and implications for the adoption of the fourth industrial revolution.

MORE COMPLEX MANUFACTURING STRUCTURE TO SIMPLIFY OPERATIONS

The emergence of Industry 4.0 will be followed by Digital Production, which will transform the manufacturing process as we know it today. This means physical production, through cloud computing, will be connected to digital systems and other players in the supply chain. Digital production will enable the virtual manufacture of products, sense potential issues and communicate these problems to the system, as well as choose the optimal way to manufacture products.

Currently, similar functions are fulfilled by employees, but they lack flexibility and are based on extensive calculations and preferences, etc. Digital production, carried over cloud computing and other technologies, on the other hand, is flexible and can arrange production on-the-go and choose the best way to fulfill an order.

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COMPUTER SERVICES LED BY CLOUD COMPUTING WILL DRIVE THE CHANGES

The manufacturing sector remains one of the main investors in computer and related services. The share of the manufacturing sector in total IT services’ capital purchases (GFCF) stood at 10-30% of total investments over 2010-2015. Notably, this figure was higher in developing countries, which were acquiring large-scale foreign direct investments in the manufacturing sector. However, as investment flows to such countries dries up, this share is starting to evaporate. The contrary can be said about innovating countries, which saw IT investments rise in importance over 2010-2015.

COMPUTER AND RELATED SERVICE PURCHASES BY MANUFACTURING AND OTHER BUYERS AND THEIR DYNAMICS OVER 2010-2015

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Source: Euromonitor International from national statistics

In recent years, developed countries have witnessed notable shift towards innovation in communication technologies, which are seen as a primary future driver of modern economies. Particularly this has been evident regarding spheres like cloud computing, the IoT and the 5G internet, which are poised to become the major driving technologies of the Industry 4.0.

Cloud computing can be called the most important of the three, as it envelops the essence of Industry 4.0. Cloud computing has been expanding at double digits over recent years globally, primarily boosted by SMEs seeking cost reductions on their IT bills. The manufacturing sector has however still been waiting for appealing proposals from technology companies. With Industry 4.0 gaining ground, this is about to change and cloud-based solutions like IIoT (Industrial IoT) are expected to surge in demand.

MAJOR CONSTRAINTS REMAIN UNRESOLVED BUT LONG-TERM POTENTIAL IS HIGH

Many issues remain, however, regarding the implementation of technologies like cloud computing in manufacturing operations. Most of these issues are technological, such as security issues surrounding cloud computing networks, uninterruptable 5G internet connection and the absence of common standards. In addition, there is a lack of understanding about how Industry 4.0 can help businesses. Recent studies on cloud computing and Industry 4.0 have shown that businesses in developed countries still have little idea about Industry 4.0, are unsure how these technologies can transform processes and are concerned about data protection.

Over recent years, large efforts to reduce obstacles have been notable. For instance, all of the major telecom infrastructure developers have been working on the launch of 5G equipment by circa 2020, which will create a field of high-speed connectivity for manufacturers to work on, while in Europe, the Alliance for Internet of Things Innovation (AIOTI) was established in 2015 to standardise the development of cloud technologies.

As a result of these restrictions, it is estimated that it will take around five years for the Industry 4.0 revolution to really kick in. Major work will take place in the development of cloud networks with trustable connectivity, while policy makers will have to ensure no constraints exist to adopt these technologies. Developed countries that invest in research and development should be at the forefront of the industrial revolution and thus benefit the most from it, as they have the enforced data protection laws, developed internet infrastructure and tech-savvy population.
 
Blueprint to beef up skills in manufacturing sector
(China Daily) 09:06, February 17, 2017

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A skilled worker operates a welding robot at an elevator-manufacturing company in Lianyungang, Jiangsu province. SI WEI / FOR CHINA DAILY

Guideline aims to address training gap in IT industry

The launch of a guideline, that focuses on training and talent development in the manufacturing industry, serves as an important measure to enhance China's manufacturing prowess, marking a stage for the full implementation of the Made in China 2025 strategy.

The guideline has been released by the Ministry of Education, the Ministry of Human Resources and Social Security and the Ministry of Industry and Information Technology.

The guideline aims to further improve skills in the manufacturing industry and realize the strategic objective of building China into a manufacturing power.

The Made in China 2025 was first put forward by Premier Li Keqiang in his Government Work Report in 2015.

There is a shortage of talent in the country's manufacturing industry. Talent gaps in the information technology industry are estimated to reach 7.5 million by 2020, according to the document.

Seven important tasks were listed in the guideline, such as speeding up the integration of industry with education, promoting key abilities and qualities that are adaptive to advanced manufacturing industry, and establishing a high-level management skills pool.

Wang Jiping, a senior official of the Ministry of Education's vocational department, said: "Structural surplus and a shortage of talent in the manufacturing industry coexist and education doesn't satisfy corporate needs."

Manufacturing industry employees, especially skilled workers, have a relatively low status and salary, hindering their career development, Wang added.

"Higher vocational technology colleges should improve curriculum designs and cultivate high-end technical talent to upgrade China's manufacturing industry and meet the demands of intelligent manufacturing enterprises," said Dai Yuwai, president of Tianjin Light Industry Vocational Technical College.

"Colleges are encouraged to carry out skill development projects by working with manufacturing enterprises," said Dai, suggesting that the current three-year higher vocational school education should be extended to four years.

"The higher vocational education should adapt to the demands of social and economic development. Manufacturing enterprises should strengthen their vocational technical training for employees," said Liu Hong, a researcher from the Central Institute for Vocational and Technical Education.

According to the guideline, employees in the manufacturing sector are expected to receive education for at least 11 years on average and 22 percent of them will finish higher education by 2020

Cheng Yu contributed to this story.

***

Vocational schools are of great importance. Taiwan began to kill its manufacturing when vocational schools began to transform into regular schools with emphasis on social sciences and theory which resulted in an excess number of people in social sciences. Mainland should not fall into such self-perpetuating trap.
 
Vocational schools are of great importance. Taiwan began to kill its manufacturing when vocational schools began to transform into regular schools with emphasis on social sciences and theory which resulted in an excess number of people in social sciences. Mainland should not fall into such self-perpetuating trap.
very right,
挖掘机技术哪家强?
 
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'Made in China' policy boosted by manufacturing upgrade
By Hu Yongqi | China Daily | Updated: 2017-02-21

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Shi Yu/China Daily


Initiative aims to achieve industrial breakthroughs and increase nation's competitiveness

China is to further promote the manufacturing sector after recently releasing 11 guidelines to implement the "Made in China 2025" strategy, with a focus on areas such as smart manufacturing, high-end equipment, new materials and branding.

An initiative, known as "1+X", was finished earlier this month with 11 guidelines published, according to the Ministry of Industry and Information Technology. The "1" stands for "Made in China 2025" and "X" refers to guidelines for 11 subsectors, including smart and green manufacturing and innovation of high-end equipment.

More than 20 State Council departments participated in the initiative, which aims to achieve breakthroughs in the manufacturing sector and boost the country's competitiveness from a "world factory" to a true manufacturing power, encompassing design to production.

These guidelines aim to be suggestions instead of administrative requirements, endowing the market a bigger role in resource allocation, and calling for joint efforts by the government, enterprises, research institutes and universities as well as financial institutions.

"Made in China 2025" was first proposed by Premier Li Keqiang in his Government Work Report in March 2015. The premier has reiterated the plan on many occasions and promoted the upgrading of China's manufacturing sector to be environmentally-friendly, cost-effective and high-end.

In a written instruction last year, the premier called for the lowering of the threshold for market access, the better allocation of resources and reduced costs for the development of advanced manufacturing industries. He also encouraged the integration of "Made in China 2025" with initiatives such as Internet Plus, mass entrepreneurship and innovation, with an emphasis on craftsmanship.

At a State Council executive meeting on April 6, the premier said efforts should be made to boost consumer confidence in domestically-made products and promote the international competitiveness of manufacturing industries by improving quality and efficiency.

The premier also had manufacturing enterprises at the top of his schedule during each of his inspection tours to regions such as Shanghai, Tianjin and Shenzhen last year.

On a visit to a new automobile plant of the Dongfeng Commercial Vehicle Company in Shiyan, Central China's Hubei province in May, the premier encouraged workers to carry forward a revolution in quality with a spirit of craftsmanship, and promote the overall upgrading of Chinese products. "Quality revolution depends on the craftsman's spirit and innovation, and the key is consumer-oriented development," he told the workers.

"The strategy of 'Made in China 2025' and Internet Plus are inseparable, as we must upgrade the manufacturing industry and boost smart manufacturing," the premier said at a session during the World Economic Forum in June in Tianjin.

Also in Tianjin, the premier lifted a smart bicycle made from carbon fiber and took it for a test ride at a Flying Pigeon experience store, which features 100-year-old brands. "I would like to tell Chinese bicycle companies that I support the smart upgrading of the 'Made in China' strategy," he said.

Zhang Jun, chief economist at China Fortune Securities, said China's aging population will lead to a rise in the price of labor and shrinking demand, meaning smart manufacturing is a good way to boost production efficiency and trim costs.

China became the world's biggest manufacturer two years ago but still lags in branding recognition and innovation compared to developed economies, said Xin Guobin, vice-minister of Industry and Information Technology, at an earlier news conference. Smart manufacturing can help tackle challenges when the country faces downward pressure on economic growth and slowing private investment, he added.

Xin's views were echoed by Huang Qunhui, director of the Institute of Industrial Economics at the Chinese Academy of Social Sciences. Huang said the nation should deplete all high-polluting and high-emission production capacity while promoting smart manufacturing and other subsectors mentioned in the guidelines.

In fact, the strategy has achieved major results as the nation's equipment manufacturing such as machine tools is surging. Guan Xiyou, former chairman of the board of directors of Shenyang Machine Tools Group in Liaoning province, said in July that the company received 20,000 orders for smart machine tools last year, double that of its annual production capacity. He resigned last month.

The company has decided to invest more on the production of new machine tools, which are now the most popular product, said Guan.
 
The biggest challenge to next gen manufacturing, at least in the US, China, UK and Japan is neither technology nor capita; Rather, is is what to do with people? WHat happens to all the drivers, the shelf-stockers, the accountants, and about 30% of all 'office' workers? We are talking about replacing >50% of human jobs.

China's problems are actually of a second order too besides the above. the primary reason manufacturing is done in China is labor arbitrage. With robots working without benefits and no OSHA regulations necessary, labor cost will crash in the US manufacture - can China handle a 90% reduction of exports to the US?

These are serious questions that countries such as India, China and Korea must mull over. Time is short.
 
The biggest challenge to next gen manufacturing, at least in the US, China, UK and Japan is neither technology nor capita; Rather, is is what to do with people? WHat happens to all the drivers, the shelf-stockers, the accountants, and about 30% of all 'office' workers? We are talking about replacing >50% of human jobs.

I think we will have to learn as we go.

The UK did not back away from industrial revolution because there were inherent risks and feudal model was much more secure and well-tested.

There will be associated social-economic challenges, but, humanity has to progress. If we do not progress, others will. If there is going to be global disaster in the future, I would rather it to be done by our own hands rather than by the hands of others.

We cannot tolerate colonialism and century of humiliation because we are just comfortable with the way things are going smoothly at the moment.

You may choose to keep the safe and secure way.

China's problems are actually of a second order too besides the above. the primary reason manufacturing is done in China is labor arbitrage. With robots working without benefits and no OSHA regulations necessary, labor cost will crash in the US manufacture - can China handle a 90% reduction of exports to the US?

China can handle. US share in China exports has been in steady decline. By the time Trump hits 100 years of age and US finally makes cheap products with enough appeal, then, I guess, its share in China's exports will be negligible with China already generating a Eurasia super-continent.
 
Made in China 2025 steals limelight at China Development Forum
Updated: 2017-03-20 11:13:27

China's national plan, Made in China 2025, has taken center stage at the ongoing China Development Forum 2017 in Beijing.

Senior Chinese officials said China will be more open, and expects more foreign companies to find new business opportunities.

At the forum the Minister of Industry and Information Technology Miao Wei suggested China is dedicated to implementing a plan which focuses on upgrading manufacturing in an all-around way.

"In remedying the link between laboratory products and their industrialization, we will focus on innovation in mechanisms and systems, rely on relevant enterprises to combine universities and research institutes, and speed up the construction of innovation centers that specialize in new materials, robotics and other aspects," Miao said.

In 2015, China's central government unveiled the ten-year national plan, Made in China 2025, designed to transform China from a manufacturing giant into a world manufacturing power.

"We welcome more countries, enterprises and organizations to participate in the process of transformation, as well as the upgrading of China's manufacturing industry, and the implementation of cooperation and exchange on different levels and in various forms, so as to share development opportunities," Miao said, adding that China will become more open to the world in the upgrading of the manufacturing industry.

Pierre Beaudoin, the Executive Chairman of the Board of Bombardier, one of the world's largest manufacturers of both planes and trains, noted at the forum that one priority of the plan is to elevate Chinese manufacturing to high levels of efficiency and productivity.

"Another way to upgrade Chinese industry is to foster corporation with multinational corporations. Bombardier has been a key contributor to our six joint ventures and seven wholly foreign-owned enterprises, and to the development of the Chinese rail transportation industry, which is one of the ten sectors highlighted in the government plan," Pierre noted.

Amin H. Nasser, the President and CEO of Saudi Aramco Oil Company, said initiatives such as Made in China 2025 have generated enormous opportunities for China and Saudi Arabia, and one such opportunity is the enhancement of investment flow between the two countries.

"On the one hand, Chinese companies can strategically benefit from the kingdom's location, and the maritime silk road by establishing manufacturing logistical R (research) and D (development) bases, especially on the west coast of Saudi Arabia. Equally, with the right opportunities, we would like to further strengthen and deepen our energy-supply relationship, and significantly multiply our investment in China," Nasser said.

The forum sponsored by China's central government runs from Saturday till Monday.
 
Made in China 2025 plan is similar to Germany's Industry 4.0 plan
March 28, 2017

"Made in China 2025" is an initiative to comprehensively upgrade Chinese industry. The initiative draws direct inspiration from Germany's "Industry 4.0" plan, which was first discussed in 2011 and later adopted in 2013. The heart of the "Industry 4.0" idea is intelligent manufacturing, i.e., applying the tools of information technology to production. In the German context, this primarily means using the Internet of Things to connect small and medium-sized companies more efficiently in global production and innovation networks so that they could not only more efficiently engage in mass production but just as easily and efficiently customize products.

The Chinese effort is far broader, as the efficiency and quality of Chinese producers are highly uneven, and multiple challenges need to be overcome in a short amount of time if China is to avoid being squeezed by both newly emerging low-cost producers and more effectively cooperate and compete with advanced industrialized economies.

If Germany’s goal is to have its SMEs hitch on to a high-tech revolution, China aims to comprehensively upgrade its industry in all dimensions (human capital, management, optimization, quality control, etc.). In other words, Made in China 2025 represents a holistic approach to manufacturing whereas Industrie 4.0 focuses primarily on internet integration.

It appears that Made in China 2025 took at least one page out of America’s book. The Chinese plan foresees the creation of 15 manufacturing innovation centers by 2020 and 40 by 2025. A few years ago, the U.S. government co-founded a National Network for Manufacturing Innovation (NNMI) made up of several Institutes for Manufacturing Innovation, a concept similar to Chinese innovation centers. Although distinct from the Industrial Internet and the IIC, the NNMI bears a distinctive hallmark of industrial policy. In this sense, Made in China 2025, Industrie 4.0, and America’s NNMI all trace their origins to government activism.






http://www.nextbigfuture.com/2017/03/made-in-china-2025-plan-is-similar-to.html
 
Upgrade gathers speed
By Wu Yong in Beijing and Shi Xiaofeng in Hangzhou | China Daily | Updated: 2017-04-17

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The colorful, fragrant and refreshing spring is in full bloom in Changping district, 50 kilometers from downtown Beijing, but 27-year-old precision instrument engineering student Shao Meng, sporting a white cotton T-shirt and goggles, is busy in his 60-square-meter flat, seemingly more fascinated by the task of debugging the operating system of a "climbing robot".

That's the kind of intensity, focus and dedication you will likely see in specialists across China these days, as the nation accelerates its drive to upgrade its manufacturing sector, in line with the central government's "Made in China 2025" strategy launched in 2015.

The grand plan aims to transform the country from the world's factory into a world-leading high-tech manufacturer of top-end products.

Think automation, smart and net-connected factories, artificial intelligence, virtual reality, big data, electric vehicles, driverless cars, so on.

Shao, a Tsinghua University student, has been on the climbing robot project for over 14 months now. His job is to provide safe and efficient testing-and-maintenance services for over 100,000 wind power generator towers around China.

"I love automation and have the full support of my tutors who are all top scholars," Shao said. "I dream of creating something great."

Shao is among X-Lab's 116 teams dedicated to technology and intelligent manufacturing or IM. X-Lab is the startup incubator of Tsinghua, which houses China's best scholars in the fields of mechanics, engineering and computer sciences.

Mao Donghui, executive director of X-Lab, said there were no such programs even two years ago. The national plan changed all that in 2015.

She attributed the current boom in IM programs to significant increase in financial support, government policy and public attention.


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Besides universities, even enterprises and governments at various levels are making joint efforts to realize the 2025 dream.

"As the second-biggest economy, China must rely on independent research and development. We have made big gains in the past few years," said Qu Xianming, executive director of the Chinese Mechanical Engineering Society and an expert on the Advanced Manufacturing Strategy Advisory Committee.

He said last year's R&D inputs from enterprises surpassed that of 2015, providing full steam for technological innovation.

According to National Bureau of Statistics data, R&D funding expenditure reached 1.42 trillion yuan ($205.86 billion) in 2015, double that of 2011, and ranked next only to the United States.

According to a Financial Times report, Chinese inventors filed 43,000 international patent applications last year, up 45 percent year-on-year. This put "the country on track to overtake Japan and the US to become the largest user of the international patent system within two years".

Qu said: "It really amazes me that not only big power-transmission equipment manufacturers but even small furniture factories in inland counties are embracing technology and innovation. They are no longer content with just expanding their operations."

Fu Dafan, chief information officer of Tebian Electric Apparatus Stock Co Ltd, also known as TBEA, said the company won 216 patents in the past two years, with the R&D spend topping 1 billion yuan.

TBEA is China's leading energy equipment producer that has supplied the nation's technology backbone projects as well as a dozen other countries in Asia, Africa and Europe. It has invested in intelligent workshops, production lines and robots, to reap incentives related to the 2025 initiative.

According to the Ministry of Industry and Technology or MIT data, high-tech manufacturing contributed more than 20 per cent of industrial growth in the first three quarters of 2016.

"R&D and industrial output are correlated, and critical to China's manufacturing upgrade," said Mao of X-lab. "Only with close collaboration among research institutes, enterprises and the government, we can overcome this challenge."

But there is a general sense that a missing link keeps China's labs and industrial applications disconnected. To forge a high-level collaborative innovation platform that can link labs and industry, the MIT published "1+X Plan" in mid-February.

The "1" stands for the Make-in-China strategy; and "X" refers to a series of supports such as the construction of 15 National Manufacturing Innovation Centers.

Wang Shouwen, vice minister of commerce, has said foreign enterprises will be encouraged to join the effort and enjoy the same treatment as their domestic counterparts, in terms of patent applications, government purchases and preferential policies.


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The first two National Manufacturing Innovation Centers were set up in May 2016 and early this year, respectively. They focus on power batteries and additive manufacturing.

"At least three Chinese manufacturing segments-power generation and transmission equipment; communication equipment; and rail transportation-would wrest global lead in the coming 10 years," Qu said.

Industry insiders expect this year to be instrumental in making the Made in China 2025 plan a success. For, 25 provinces and municipalities had issued supportive policies by the end of last year, which are expected to give a solid impetus to China's industry.

In February, GE China's supply chain president, Steve Meszaros, said that with manufacturing upgrade, the company plans to increase the share of its purchases in China to $10 billion by 2020, which would be the largest for any country in the world.

Ha Enjing, a spokeswoman for Siasun Robot & Automation Co Ltd, understands the significance of Meszaros' statement. She said Siasun Robot has supplied products and services worth hundreds of millions of yuan to many leading Western companies, including BMW, General Motors and a US-based flash memory maker.

She believes the trend could prove win-win for both Chinese suppliers and Western corporate buyers.

John Seifert, worldwide CEO of WPP's Ogilvy & Mather, said in an interview with Xinhua News Agency that Chinese companies are willing to invest in technology, go global to become more competitive, and thus succeed in both local and overseas markets.

Agreed Hao Wu, a managing director at Silicon Valley Bank Financial Group, who focuses on management of relationships with venture capital firms. "X-Lab is functioning like a magnet and catalyst. It has attracted top academic talents and facilitated a lot of original technology innovation."

SVB, based in California, mainly serves venture capital firms and global companies engaged in innovation. The joint venture bank was set up in 2012.

"I believe the platform (X-Lab) could play an instrumental role in upgrading the traditional manufacturing sector and we would be more than happy to assist these efforts."

For Tsinghua student Shao, all these developments are harbingers of exciting times ahead. For the rest of the year, he is intent on sustaining his intense focus on two aspects: technical optimization and marketing.

"Climbing robots are a niche market, but key to the green energy strategy. Maybe, we (X-Lab) can grow into the sector's No1 and China's ABB," said Shao.

Contact the writers at wuyong@chinadaily.com.cn

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