General Secretary Xi has stressed that optimization and upgrading of industrial structure is key to improving the comprehensive economic competitiveness of China; that we should promote the deep integration of the Internet, big data, artificial intelligence and the real economy, and continue to do a good job in the deep integration of IT application and industrialization; and that we should accelerate the research on green and low-carbon technologies, and continue to promote the optimization and upgrading of industrial structure. The MIIT has adhered to the supply side structural reform as the main line to promote digital transformation of the manufacturing industry, advance green and low-carbon industrial development, speed up the development of emerging industries, as well as shut down outdated production facilities and resolve excess capacity. The middle and high-end industries are taking an increasingly higher percentage in the industrial structure. The percentages of high-tech manufacturing and equipment manufacturing in the added value of industrial enterprises above the designated size increased from 9.4% and 28% in 2012 to 15.1% and 32.4% in 2021, respectively contributing 28.6% and 45% to the growth of those industrial enterprises. Remarkable achievements have been made in eliminating outdated and resolving excess capacities. The iron and steel industry fulfilled the target of reducing production capacity by 150 million tons during the 13th “Five-year Plan” period two years ahead of schedule, and 140 million tons of “substandard steel” have been fully cleared. The outdated production facilities of electrolytic aluminum, cement and other industries have been basically shut down. The digital level of the manufacturing industry has improved significantly. By the end of 2021, the numerical control rate of key processes and the popularity of digital R&D and design tools in industrial enterprises nationwide reached 55.3% and 74.7% respectively, 30.7 and 25.9 percentage points higher than those in 2012. More than 700 digital workshops/intelligent factories have been built, enabling the refining and chemical, printing and dyeing, home appliances and other fields to lead the world for their intelligent manufacturing. The industrial Internet platforms have connected more than 78 million units/sets of equipment, serving more than 1.6 million industrial enterprises. Industry has sped up its green transformation. The energy consumption per unit of added value of industrial enterprises above the designated size declined by 28% and 16% respectively in the 12th and the 13th “Five-year Plan” periods, and the figure further went down by 5.6% in 2021. Likewise, the water consumption per 10,000 yuan of industrial added value further decreased by 7% in 2021 on the basis of the respective reduction of 35% and 39.6% in the 12th and the 13th “Five-year Plan” periods. In 2020, the comprehensive utilization rate of general industrial solid wastes reached 55.4%, recycling about 380 million tons of renewable resources. Since 2012, the compound annual growth rate of the total output value of the environmental protection equipment manufacturing industry has surpassed 10%. Regional industrial development has been more coordinated. We have implemented major national strategies for regions and created regional growth poles in manufacturing by fostering 445 national new industrialization demonstration bases, and guiding them to improve their level of cluster development. The number of enterprises in those bases has exceeded 4 million, out of which more than 10,000 are listed companies. Contributing to over 30% of the country’s industrial added value and import and export volume, and more than 40% of the total profits, they have become an important carrier for China’s industrial transformation and upgrading, and the building of strength in manufacturing. We carried out a special action to cultivate advanced manufacturing clusters and selected 25 as national advanced manufacturing clusters, to promote a development ecosystem of “industry + technology + finance + talents”, and build a source of momentum for high-quality development of the manufacturing industry.

4. Major breakthroughs have been achieved in innovation in key areas, accelerating the transformation from China Manufacturing to China Creation

General Secretary Xi Jinping has emphasized that innovation should be placed at the heart of driving the development of the manufacturing industry. The MIIT has continued to implement the strategy of innovation-driven development, and promoted coordinated implementation of major projects, initiatives and special programs. The development of an industrial technology innovation system has been accelerated - under which enterprises play the principal role in market-oriented innovation and enterprises, universities, research institutes and end-users are deeply integrated – so that more focus will be given to improvement in systematic capacity instead of individual, standalone breakthroughs. The “Fuxing” high-speed EMU train that runs all over China has become a better option for faster and more comfortable travel. The “Fendouzhe” (Striver) deep-sea manned submersible has reached the Mariana Trench and completed 21 10,000-meter dives, breaking the world record in terms of the number of 10,000-meter dives and divers. Major progress has been achieved in the R&D of the C919 large passenger aircraft, which will soon be certified for airworthiness and delivered to customers. The one-million-kilowatt hydro-generator unit, with the world’s largest single-unit capacity, has been put into operation at the Baihetan Hydropower Station and every year, the unit can produce electricity that satisfies the daily needs of about 75 million people in a whole year. The super-sized shield machine, named “Jinghua”, has been put into operation, ready to support nationwide transportation connectivity with its powerful tunneling capacity. Mobile robots, underwater robots, cleaning robots, drones and other technologies as well as high-end medical imaging equipment such as magnetic resonance and ultrasound imaging have gained global leadership. Compared with 2012, the gravimetric energy density of the power cell of new energy vehicles has increased by 1.3 times, with a price drop of 80% and a rise in the driving range of mainstream models from 150 kilometers to more than 500 kilometers.

5. The world’s largest network infrastructure has been built, with leading technology, guaranteed operation, and global leadership in 5G