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State Council’s series of policies on manufacturing, consumer goods

Updated: Aug 4,2016 7:06 PM

Premier Li Keqiang refuels a truck on the assembly line during his visit to a heavy truck plant of Dongfeng Commercial Vehicle Co in Shiyan city, Central China’s Hubei province, on May 23. “I’m not only encouraging Dongfeng company, but also encouraging Made in China. We need quality reform to promote the upgrading of Chinese manufacturing,” said Premier Li.

Premier Li Keqiang pointed out in this year’s government work report that efforts should be made to improve quality of consumer goods and promote manufacturing upgrade. The State Council also issued a number of documents to facilitate such efforts.

Made in China + Internet generates a new pattern

As an important support to “Made in China 2025”, “Internet Plus” should promote integrated growth of manufacturing and Internet, said Premier Li at a State Council executive meeting on May 4. On May 20, the State Council released a guideline to deepen integrated development of manufacturing and Internet, and stated that innovation and entrepreneurship platforms should be established in 80 percent of backbone enterprises in key manufacturing industries by the end of 2018.

According to the guideline, Internet-based innovation and entrepreneurship platforms should be built for manufacturing enterprises, and Internet and telecom operators are encouraged to provide such service to SMEs.

The government should support innovative integration of manufacturers and Internet firms in strategic investment, brand cultivation, online sales, and logistics. Key national R&D plans should be implemented to support automatic, digitalized, and smart manufacturing.

The guideline also emphasized that solutions should be in place to facilitate standards in interconnection, data exchange and communication protocols among industrial products while ensuring information and system security.

Cut excessive capacity in steel and coal industries for better growth

The State Council executive meeting on Jan 22 pointed out that cutting excessive capacity in steel and coal industries is an important measure to advance the supply-side reform and promote optimization and upgrade of industry structure.

In February, the State Council issued opinions to cut excessive capacity in steel and coal industries to realize better growth. According to the opinions, 100-150 million more tons of crude steel will be cut on the basis of over 90 million tons weeded out in recent years, and the output of coal will be substantially reduced.

The government should halt approval of new coal mines and capacity, and optimize policies to fund reposition of redundant personnel, support financial institutions to process non-performing assets, and allow social capitals to participate in acquisition and reorganization.

Build brands to upgrade the supply and demand structure

On May 30, the General Office of the State Council issued the opinions on campaigns in consumer goods industry to create good market environment, calling to increase types, raise quality and enhance brands of the industry.

On June 20, the office further released opinions to upgrade the supply and demand structure with strong brands. The opinions pointed out that basic brand building should be consolidated with structure upgrade of both the supply and demand sides. The supply side should build brands and increase product types and quality while expanding brand influence at the demand side to upgrade consumption structure.

Optimize quality for leap-forward development

The executive meeting on April 6 pointed out that inferior products should be weeded out to raise consumers’ trust on “made in China” and enhance international competitiveness with innovative, high-quality and popular products.

On April 19, the General Office of the State Council issued the 2016 action plan on implementing quality development and urged brand building and supply-side reform with a focus on quality and efficiency. The plan emphasized that efforts should be made to generate motivation, create conducive environment to strengthen quality and brands, and form new advantages under complete technical and legal framework.