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The Promotion of China’s Industry towards the Mid-to-High End of the Global Value Chain Propelled by Service-Oriented Manufacturing Industry(No. 41, 2018)

Apr 16,2018

By Li Yan, Research Department of Industrial Economy, DRC

Research Report No. 41, 2018 (Total. 5316) 2018-3-6

Abstract: The 19th CPC National Congress came up with strategic plans on implementing the new development concept, building a modern economic system, promoting high-quality development and continuously enhancing China’s economic innovation and competitiveness. Service-oriented manufacturing industry is an important leverage for the innovation-based development of global manufacturing industry against the landscape of knowledge economy and IT application. Vigorously developing the service-oriented manufacturing industry is an effective way to turn China into a strong manufacturer and move China’s industry towards mid-to-high end of global value chain. It is an important measure to accelerate the transformation of development mode, improve the quality and efficiency of development and cultivate and strengthen the growth of economic development with new drivers. At present, the service-oriented manufacturing industry in China is experiencing an initial stage of development. As a result, the service mode is relatively simple and the output level is still low. There are still some key constraints checking manufacturing enterprises to carry out service innovation. The Central Government needs to take the development of service-oriented manufacturing industry as an important strategy for sharpening its competitive edge in the world and promoting its innovative growth. Efforts need to be made to flesh out overall planning, institutional mechanisms, resources integration and policy environment so as to promote the integrated and interactive development of Internet Plus-based manufacturing industry as well as manufacturing with service industries.

Key words: service-oriented manufacturing industry, industrial upgrading, institutional environment