The five years since the 18th Party Congress have been fruitful for industry and information technology in China. Over the past five years, the CCP Central Committee with Comrade Xi Jinping as the core has put forward a series of new discourses on vigorously revitalizing the manufacturing industry, accelerating the construction of a manufacturing power and a cyberpower based on the overall situation of state governance and administration and the great cause of national rejuvenation, with brilliant new achievements made in leading and promoting industry and information technology development. In particular, in the face of the historical intersection of a new wave of S&T revolution and industrial transformation and China’s accelerated transformation of economic development models, the Party Central Committee and the State Council have reviewed the situation and have strengthened strategic planning and forward-looking deployment. Aiming at the Two Centenary Goals, China has begun the incredible journey of building a manufacturing power and a cyberpower, bringing industry and information technology in China into a new era. The system of industrialization and informatization has thoroughly implemented the spirit of General Secretary Xi Jinping’s series of important speeches and the new concepts, new ideas, and new strategies for state governance. We have firmly implemented the decisions and arrangements of the Party Central Committee and the State Council, unswervingly followed the new road of industrialization with Chinese characteristics, and led new development with new ideas, fully implementing the Made in China 2025 and Internet+ campaigns. The system accelerates industrial transformation and upgrades, improves quality and efficiency, and encourages innovative development. By accelerating the building of a manufacturing power and cyberpower, it has provided vital support for economic and social development and the steady improvement of comprehensive national strength, laying a solid foundation for realizing the Two Centenary Goals.
I. Taking multiple measures to achieve steady growth and realize the stable and rapid development of the industrial communication industry
General Secretary Xi Jinping emphasized that industry is the foundation of a country. A stable industry leads to a stable economy, and sound industrial growth is linked to the stable operation of the national economy and social stability. Facing the sustained downward pressure on the industry, we have adhered to the general tone of seeking progress while maintaining stability. Following the requirements of industrial policies, we have paid close attention to the implementation of various policies and measures to stabilize industrial growth, make structural adjustments, and increase efficiency. We must strive to address the significant problems industrial development faces to ensure that the industrial economy operates within a reasonable range, lending strong support for the national economy to maintain a medium-high growth rate.
(1) Investment vitality effectively stimulated. Investment plays a crucial role in stabilizing industrial growth. We have promoted the establishment of the National Integrated Circuit Industry Investment Fund, the National Small and Medium Enterprise Development Fund, and the Advanced Manufacturing Industry Investment Fund, improved the investment environment, improved investment services, and have guided social funds to invest in advanced manufacturing fields, the transformation and upgrading of traditional industries, and the innovative development of emerging industries. Thanks to a series of comprehensive policy measures to stabilize investment, China’s industrial fixed asset investments increased from RMB 15.46 trillion in 2012 to RMB 22.78 trillion in 2016. The share of manufacturing investment in industrial investment increased from 80.8% in 2012 to 82.4% in 2016. We have taken technological transformation as a significant starting point for stabilizing industrial investment and have encouraged, supported, and guided enterprises that have implemented several technological transformation projects with high industrial relevance, an advanced level of technology, and promising market prospects. From 2013 to 2016, the average annual growth rate of industrial-technological transformation investment was 13%, of which the average annual growth rate of manufacturing technology transformation investment was 14.3%. In 2016, technological transformation investment accounted for 40.6% of industrial investment, an increase of 7.7 percentage points over 2012, becoming the main driving force for industrial investment growth.
(2) Consumption potential has been continuously unleashed. We have actively responded to the adverse impact of the decline in external demand, adapted to the needs of a structural upgrade to consumption, and made efforts from both supply and demand. While steadily expanding traditional consumption, we have incubated and expanded emerging consumption hotspots such as information consumption and green consumption and have unleashed the potential of domestic demand. Benefiting from the reduction of the purchase tax on small-displacement vehicles and the promotion and application of energy-saving and new energy vehicles, vehicle consumption has continued to grow. In 2016, China’s automobile production and sales reached 28.119 million and 28.028 million, respectively, ranking first in the world in terms of production and sales. The new energy vehicle industry has developed rapidly, and its production and sales have ranked first in the world for two consecutive years. It is expected to continue to maintain its leading position this year. We have actively encouraged the State Council to issue two policies and measures to promote and upgrade information consumption and continue to expand the potential of domestic demand, enabling the vigorous development of information consumption. The supply level of information products has been continuously improved, and the production and market size of mobile phones ranks first in the world. In 2016, 1.5 billion smartphones were produced, accounting for 74.7% of all mobile phone production. New smart hardware in such fields as home living, personal wear, and medical and health care have emerged in an endless stream. Online and offline integration and business innovation are active, online medical treatment, online education, and other forms of innovation continue to grow, and new consumption in transportation, travel and accommodations, and catering and takeaway is rapidly emerging. The scale of information consumption increased from RMB 2.2 trillion in 2013 to RMB 3.9 trillion in 2016, with an average annual growth rate of 21%, indirectly driving the economic growth of more than RMB 10 trillion.
(3) Openness and cooperation are expanding day by day. We have actively implemented the strategy of opening up to the outside world, coordinated the accelerated implementation of central Belt and Road projects, built an international production capacity and equipment manufacturing cooperation platform, supported the construction of overseas industrial cooperation parks, accelerated the interconnection of information infrastructure with neighboring countries, and promoted the development of open cooperation in the industrial communication industry at a more comprehensive, deeper, and higher level. In 2016, China’s industrial exports reached USD 1.99 trillion, accounting for one-seventh of the world’s total, making it the largest exporter of industrial products. Technology-intensive mechanical and electrical products have surpassed labor-intensive textile products to become the main export force. In 2016, exports of mechanical and electrical products and high-tech products accounted for 57.7% and 28.8% of exports of goods, respectively. The pace of “going global” in the manufacturing industry has accelerated. In 2016, China’s overseas non-financial direct investment was USD 170.11 billion, of which foreign manufacturing investment was USD 31.06 billion, accounting for 18.3% of total foreign investment from 9.6% in 2013. The brand reputation and international influence of Made in China have been significantly improved.
Through active efforts in all aspects, China’s industrial communication industry has overcome many difficulties and withstood downward pressure, showing a development trend of slowing and stabilizing, steady progress, and continuous improvement. From 2013 to 2016, China’s total industrial added value increased by an average of 6.7% annually, ranking among the world’s top major economies. The total annual industrial added value increased from RMB 20 trillion in 2012 to RMB 24.8 trillion in 2016, ranking firmly as the world’s largest manufacturing country. In 2016, the revenue of China’s information and communication service industry exceeded RMB 2.4 trillion, an increase of 80% compared with 2012. The average annual compound growth rate of internet industry revenue exceeded 40%, becoming the second-largest force in the global internet, with obvious advantages in scale and applications. The overall level of corporate efficiency is good, and the output per unit of labor has increased significantly. From 2013 to 2016, the primary business income of industrial enterprises above the designated size increased by 3.8% annually, and total profit increased by 3.1% annually. Several internationally competitive enterprise groups have been formed in rail transit equipment, communication equipment, and electric power equipment. 10 enterprises joined the ranks of the top 30 global internet companies by market value. The vitality of small, medium, and micro enterprises is constantly overflowing, and the development pattern of large and medium-sized enterprises is accelerated.
II. The innovation-driven development strategy has been implemented, and the industry has accelerated its progress towards the mid-to-high-end
General Secretary Xi Jinping has noted that innovation is the primary driving force for development. We have placed innovation at the core of the overall development of the manufacturing industry, have deeply implemented Made in China 2025, highlighting key points, strengthening foundations, and making up for shortcomings, and have improved the national manufacturing innovation system. We have enhanced basic industrial capabilities and accelerated key core technologies breakthroughs. We have promoted the significant enhancement of industrial innovation capabilities and have provided a strong impetus for the improved quality, enhanced efficiency, and overall upgrading of the industrial communications industry.
(1) The pace of construction of manufacturing innovation centers has been accelerated. As the first of the five major projects proposed by Made in China 2025, the construction of a manufacturing innovation center is a fundamental solution to make up for the broken links in the innovation chain, especially to solve the “valley of death” problem between laboratory products and industrialization. Under the leadership of the National Leading Group for Building a Manufacturing Power, we have issued the Implementation Guidelines for the Construction of Manufacturing Innovation Centers (2016-2020) and published the Guidelines on Improving the Manufacturing Innovation System and Promoting the Construction of Manufacturing Innovation Centers. Guided by industrial applications, efforts have been made to build and improve the national manufacturing innovation network with the national manufacturing innovation center as the core and the provincial manufacturing innovation center as an essential supplement. In June 2016, the establishment of the National Power Battery Innovation Center was approved. In December of the same year, the National Additive Manufacturing Innovation Center was approved. The construction of manufacturing innovation centers has entered the implementation stage from top-level design. Together with relevant authorities, we have demonstrated the overall layout of the construction of the national manufacturing innovation center and have identified 22 critical areas for construction in the near future. In July 2017, we announced the conditions for upgrading the provincial manufacturing innovation center to the national manufacturing innovation center. So far, a set of work measures for the layout, incubation, selection, operation, and sustainable development of innovation centers have been initially formed, which provides an essential basis for the steady, orderly, and high-standard overall development of the construction of national and provincial manufacturing innovation centers. At present, there are 35 provincial-level manufacturing innovation centers under incubation and construction in various regions.
(2) Basic industrial capabilities have continued to be consolidated. The industrial base directly determines the performance and quality of products and is an essential foundation and supporting condition for building a manufacturing power. We have implemented solid industrial base projects and have used key projects to break through the bottlenecks of engineering and industrialization of essential core components, vital basic materials, and advanced basic processes. We have built essential industrial technology services and accelerated the filling of the outstanding shortcomings that restrict the manufacturing industry’s innovation, development, and overall improvement. Since 2013, we have supported a total of 314 solid industrial base demonstration projects, achieved more than 30 breakthrough results, established 19 public service platforms for industrial technology foundations, and have strongly supported the overall upgrading of critical industries. To promote the successful introduction of the products of solid industrial base demonstration projects to the market, we have formulated an implementation plan for the “one-stop” application of critical products and processes of solid industrial base projects, promoting nearly 50 critical applications, covering power battery diaphragm materials, micro-motor system sensors, new urban rail transit bearings, engine EFI systems, graphene, and other essential products. We have broken down foreign monopolies and addressed the “throttle” placed on many essential core components, critical basic materials, and advanced basic technology.
(3) Important breakthroughs have been made in the innovation and development of high-end equipment. As a high-end field of manufacturing, high-end equipment reflects the core competitiveness of a country’s manufacturing industry. Regarding equipment upgrades as the focus of Made in China 2025, we have launched high-end equipment innovation projects, accelerated the implementation of high-end CNC machine tools, “aircraft towing” technology, large aircraft, and other major national S&T projects, and have actively promoted the industrialization of major equipment, with frequent reports of major breakthroughs at the major national heavy equipment technology level. The world’s first high-resolution earth observation remote sensing satellite in geosynchronous orbit, Gaofen-4, was launched into orbit and put into use. The Beidou satellite navigation system was fully completed and put into operation. The first quantum satellite was successfully launched, the C919 large passenger plane was successfully tested twice, and the ARJ21 regional passenger plane was put into commercial operation. The manned submersible (Jialong) and submarine metal and mineral exploration and development equipment (Bluewhale 1) have entered the world’s first echelon, the independently-built “Haidou” unmanned submersible has ranked China third after Japan and the United States in having the ability to develop 10,000-meter-level unmanned submersibles, and the Yangtze River Three Gorges ship lift broke the world record. Multi-axis precision heavy-duty machine tools, 400-horsepower continuously variable tractors, and other products are among the world’s advanced ranks. The high-speed EMU with independent intellectual property rights has become a postcard to the world for the development of China’s manufacturing industry. Technologies such as speech recognition and image recognition have reached the internationally advanced level. Active progress has been made in technologies such as robot body optimization design and performance evaluation, high-speed and high-precision control, and the output of industrial robots accounts for about a quarter of the world’s total.
(4) The development of military-civilian integration has advanced deeply. Implementing the military-civilian integration development strategy is a major deployment made by the CCP Central Committee with Comrade Xi Jinping as the core based on the development requirements of the times and from the overall national security and development strategy. We have given full play to the role of the inter-ministerial coordination group for military-civilian integration and military-civilian weaponry and equipment research and production. We have pushed relevant military and local authorities to introduce a series of policies and measures to promote the deep integration of military and civilian development in investment, taxation, and market access for military products. Three military-civilian integration high-tech achievement exhibitions were jointly held, and several military-civilian integration high-tech projects achieved fruitful results. We have continued to expand the opening up of the military industry, easing market access. Among the units that have obtained licensing for scientific research and production of weapons and equipment, civilian units have accounted for two-thirds of the total number of military scientific research and production license units, with the number of private enterprises increased from less than 500 in 2012 to 1,169, an increase of more than 130%. The functions of the national military-civilian integration public service platform have been continuously optimized. The regional role for demonstration and leadership of the national new industrialization industry demonstration base (military-civilian integration) has been further strengthened. The “military-to-civilian” and “civilian-to-military” catalogs have played an increasingly important role in promoting the bilateral transformation, application, and industrialization of military-civilian technological achievements, and an in-depth development pattern of all-factor, multi-field, and high-efficiency military-civilian integration is taking shape.
III. Supply-side structural reform has deepened with positive results in structural adjustment
General Secretary Xi Jinping emphasized that promoting supply-side structural reform is a strategic idea that must be established in China’s macroeconomic management under the new normal of economic development. Industry is the “pillar a country stands upon” for developing and upgrading and the main battlefield for promoting supply-side structural reforms. We have focused on reducing overcapacity, reducing costs, and making up for shortcomings in the industrial sector, focusing on reducing ineffective and low-end supply, expanding effective and high-end supply, and promoting the continuous improvement of the quality and efficiency of the supply system.
(1) The task of overcapacity reduction has been over-completed. Great efforts have been made in resolutely fighting the brutal battle to cut overcapacity. Together with the formulation of eight supporting policies such as reward and subsidy funds, employee placement, environmental protection, and finance, etc., and organize with relevant departments to carry out three special projects of eliminating backward and illegal construction projects and joint law enforcement. Actions to promote the establishment of an effective working mechanism and a relatively complete and vertically-linked policy system. From 2013 to 2015, a total of 48 million tons of backward iron-making capacity, 57 million tons of steelmaking capacity, 1.1 million tons of electrolytic aluminum, 240 million tons of cement (clinker and grinding capacity), and 80 million weight boxes of flat glass were eliminated nationwide. In 2016, the steel industry reduced production capacity by more than 65 million tons, exceeding the annual target. At the end of June 2017, strip steel was banned entirely, and the scheduled target task of resolving steel production capacity for the whole year was completed ahead of schedule from January to July. We have tightly seized upon the disposal of “zombie enterprises” and have promoted the introduction of guiding documents for the industrial restructuring and disposal of zombie enterprises. Baosteel and Wuhan Iron and Steel jointly established Baowu Iron and Steel Group. With the further progress of eliminating backward production capacity and resolving excess production capacity, steel, and other industries’ overall production and operation conditions have improved.
(2) The cost burden of enterprises has been further reduced. We have continued to deepen the reform to “delegate power, streamline administration and optimize government services,” canceling 30 administrative examination and approval items, which were decentralized and adjusted, accounting for 53.6% of the initial administrative examination and approval items. All non-administrative examination and approval items have been canceled, the supervision work of “inspections by randomly selected inspectors of randomly selected entities and the public release of inspection results” has been carried out, and the online “one window” processing of administrative licensing has been promoted. We have given full play to the role of the inter-ministerial coordination joint meeting mechanism of the State Council to reduce the burden on enterprises, have encouraged all regions and authorities to publish lists of enterprise-related administrative fees and government funds, and have established a normalized publicity system. We have carried out a special campaign to clean up and standardize enterprise-related charges, reduced the burden on enterprises by more than RMB 100 billion, and canceled more than 150 enterprise-related deposit projects. We have promoted the issuance of guidelines on financial support for the construction of a manufacturing power, have steadily promoted industry-fusion cooperation, carried out pilot projects in cities (districts) for industry-fusion collaboration, cleared channels for finance to enter real enterprises, and reduced corporate financing costs. We have continued to promote the construction of the financing guarantee system, have carried out special campaigns for small and micro-enterprise accounts receivable financing, and have encouraged financial institutions and core supply chain enterprises to provide accounts receivable financing to small and micro-enterprise suppliers. In 2016, the cost per RMB 100 of primary business income of industrial enterprises above the designated size was RMB 85.52, down RMB 0.10 from the previous year. From January to August of this year, the decline in costs further increased, falling by RMB 0.12 year-on-year.
(3) Quality brands have steadily improved. We have comprehensively enhanced the quality of products and services as the main direction of supply-side structural reform. We have carried out a special industrial quality brand-building campaign for six consecutive years. We have formed several influential and iconic campaigns such as quality benchmarking, quality control and technical evaluation laboratory construction, corporate brand incubation, and industrial cluster regional brand building. For the large-scale and wide-ranging daily consumer goods sector, the special campaign for “increasing varieties, improving quality, and creating brands” was implemented in-depth, and the supply capacity, quality of consumer goods, and brand competitiveness mid-to-high-end consumer goods were further improved. In terms of increasing varieties, the supply capacity of high-end products such as rice cookers, range hoods, smart toilets, and smart TVs has been continuously improved, and the trend of a return from overseas consumption is significant. Breakthroughs have been achieved in hybrid-ink pen technology with exports to overseas markets. The production and supply of 17 small varieties of drugs were promoted and guaranteed, and three innovative first-class medicines and 45 innovative medical devices were approved for marketing. In terms of quality improvement, in 2016, the overall random inspection pass rate of ten categories of key consumer goods in China was 90.3%, a year-on-year increase of 5.2 percentage points. More than 5,000 kinds of products have achieved “same line, same standard and same quality” for domestic and foreign sales. In terms of brand creation, nearly 10,000 companies across the country have carried out brand incubation pilot projects, and 99 consumer goods companies have been selected into the top 500 Asian brands.
(4) The pace of industrial greening has accelerated. Green manufacturing is an essential trend in the development of the manufacturing industry. It is also the only way to solve the resource and environmental constraints faced in China’s industrialization. We have successively issued and implemented the Industrial Green Development Plan (2016-2020) and Green Manufacturing Engineering Implementation Guidelines (2016-2020) to accelerate the formation of green production methods and lifestyles. On the one hand, we have further promoted the development of green manufacturing. We have organized special projects for green manufacturing projects, have utilized financial funds to support 225 major green manufacturing projects, have built a green manufacturing system centered on green standards, green factories, green products, green parks, and green supply chains, and have driven the continuous improvement of resource and energy utilization efficiency in critical industries. On the other hand, we have made full use of national and local policies and measures such as energy conservation and emission reduction, technological transformation, and green credit to accelerate the green transformation of traditional industries. We have published the Administrative Measures for Industrial Energy Conservation and have carried out major national industrial energy conservation monitoring campaigns. We have formulated and implemented the Twelfth Five-Year Plan for the Promotion of Industrial Cleaner Production to guide the industry to implement cleaner production technology transformation. We have issued guidelines for strengthening the green development of industries in the Yangtze River Economic Belt and have formulated plans for cleaning and transforming key sectors to prevent and control air and water pollution. We have vigorously promoted the comprehensive utilization of industrial solid waste and renewable resources and have promoted the implementation of 44 demonstration projects for the coordinated development of industries in the comprehensive utilization of industrial resources in Beijing-Tianjin-Hebei and surrounding areas. From 2012 to 2016, the energy consumption per unit of industrial added value of enterprises above the designated size decreased by about 29.5%, and the cumulative decrease of water consumption per RMB 10,000 of industrial added value decreased by about 26.6%. From January to August of this year, the energy consumption per unit of added value of industrial enterprises above the designated size across the country dropped by 3.19% year-on-year.
(5) Coordinated regional development has been further strengthened. We have collaboratively promoted the development of the Three Major Strategies and Four Major Sectors, have given full play to the enthusiasm of both the central and local governments, and have promoted the further improvement of the level of coordinated regional development. We have published the industrial transfer guidance catalog, have supported the construction of industrial transfer collaboration demonstration parks, and have guided the orderly transfer of industries to the central and western regions. We have worked with relevant authorities and the three provinces and cities of Beijing, Tianjin, and Hebei to formulate the Beijing-Tianjin-Hebei Coordinated Development Industrial Upgrade and Transfer Plan and the Beijing-Tianjin-Hebei Industrial Transfer Guide to clarify the industrial development orientation of the Beijing-Tianjin-Hebei region, support the planning and construction of the Xiong’an New Area in Hebei, and relieve Beijing of non-capital functions. We have formulated a plan for the transformation and upgrading of innovation-driven industries in the Yangtze River Economic Belt, have organized the compilation of the Guidelines for Industrial Transfer in the Yangtze River Economic Belt and the Market Access Black List for Industrial Development in the Yangtze River Economic Belt to promote the orderly transfer of industries along the river and achieve differentiated development. We have continued to promote the construction of new industrialized industry demonstration bases. The 333 national-level demonstration bases that have been awarded have achieved industrial added value and their profits account for one-third of the national industry total above the designated size. We have intensified the promotion of targeted poverty alleviation, have supported the development of key areas such as old revolutionary base areas, Xinjiang, and Tibet, and have fundamentally formed a new pattern of industrial development based on local conditions and regional linkages.
IV. We have promoted the in-depth integration and development of informatization and industrialization, spurring the emergence of a large number of new business forms and models
General Secretary Xi Jinping has emphasized that as the world economy accelerates its transformation to economic activity themed around the network information technology industry, we must excel the deep integration of informatization and industrialization. Focusing on the main line of promoting the in-depth integration and development of new-generation information technology and manufacturing technology, we have formulated and organized a series of plans and special action plans to continuously improve the level of digitization, networkization, and intelligentization in the manufacturing industry.
(1) The development of intelligent manufacturing has achieved positive results. We have carefully studied and judged the new trend of industrial transformation, have taken intelligent manufacturing as the main direction of the integration of industrialization and industrialization, and have jointly released the Guidelines for the Implementation of Intelligent Manufacturing Engineering, Guidelines for the Construction of the National Intelligent Manufacturing Standard System (2015 Edition), and Intelligent Manufacturing Development Plan (2016-2020), forming a work pattern that takes intelligent manufacturing engineering, pilot demonstration, and standard system construction as the starting point where all authorities and localities work with one another to jointly implement production, education, research, and applications and jointly promote all aspects. Since 2015, 207 pilot demonstration projects in intelligent manufacturing have been selected, a number of digital workshops and intelligent factories have been initially built, and a number of new models of intelligent manufacturing that are relatively mature, replicable, and popular have been explored and formed. We researched and formulated a number of key standards such as the digital factory reference model, have preliminarily established the intelligent manufacturing standard system framework, and have actively promoted international collaboration and mutual recognition of standard system frameworks, standard roadmaps, and standard formulations. We have released the industrial internet system architecture and have promoted the construction of a number of industrial internet platforms for aerospace, home appliances, machinery and heavy industry, and other sub-sectors. After continuous efforts, the pace of intelligent transformation of production equipment in China’s manufacturing enterprises has accelerated, and the comprehensive integration level has continued to improve. Smart robots, additive manufacturing, wearable smart products, mobile smart terminals and other industries are developing rapidly. The promotion of mass customization in clothing, furniture, and other industries has accelerated. Collaborative R&D and manufacturing are increasingly emerging in high-end manufacturing fields such as automobiles, aviation, and aerospace. In 2016, the numerical control rate of key processes of industrial enterprises reached 45.4%, an increase of 6.3 percentage points (comparable caliber) compared with 2013, and the networking rate of digital production equipment reached 38.2%. The competitive advantages of intelligently transformed manufacturing enterprises in supply chain collaboration, lean management, precise manufacturing, and rapid market response are constantly expanding.
(2) The construction of the “mass entrepreneurship and innovation” platform has accelerated. Building a “mass entrepreneurship and innovation” platform that gathers the wisdom and strength of the masses is an important force for promoting mass entrepreneurship and innovation. We have promoted the introduction of guidelines for deepening the integration and development of manufacturing and the internet, have accelerated the construction of an internet-based “mass entrepreneurship and innovation” platform for large-scale manufacturing enterprises and a third-party “mass entrepreneurship and innovation” service platform for small and medium-sized enterprises, and have worked hard to form the effects of superposition, aggregation, and multiplication from the deep integration and development of the manufacturing industry and the internet. The penetration rate of “mass entrepreneurship and innovation” in large enterprises has continued to increase, and the penetration rate of internet “mass entrepreneurship and innovation” platforms in key manufacturing industries has exceeded 60%, providing an important carrier for large and medium-sized enterprises to evolve from surface-level collaboration to deep integration. We have encouraged localities to use idle factories and land, as well as existing industrial parks, to establish small business start-up bases and to develop innovation and entrepreneurship carriers such as virtual incubators and makerspaces. From 2015 to 2017, three batches of 297 national small and micro enterprise entrepreneurship and innovation demonstration bases were announced. We have strengthened dynamic management and demonstration guidance, have supported about 500 national public service demonstration platforms for small and medium-sized enterprises, and have provided small and medium-sized enterprises with entrepreneurship and innovation services that can be discovered, utilized, and guaranteed.
(3) The management system for the integration of informatization and industrialization is constantly improving. We have taken the construction of the management system for the integration of informatization and industrialization as an important measure and a powerful starting point to promote the in-depth integration of informatization and industrialization, marking an important shift from understanding to aggressively moving forward. In 2013, the Industrial Enterprise Informatization and Industrialization Integration Evaluation Specification was officially released, becoming the first national standard for the integration of informatization and industrialization, entering the ISO international standard project establishment process in early 2017. In 2014, the Administrative Measures for the Evaluation of the Integrated Management System of Informatization and Industrialization was issued, which clarified the requirements, management, and supervision methods for evaluation work, and a pilot program for implementing the standard was fully launched. Drawing on management system standards such as ISO9000, the establishment of national standards for the four basic standards of the integrated management system of informatization and industrialization has been completed. With this as a driving force, 6,160 enterprises have carried out the integration of informatization and industrialization, 1,149 enterprises have passed implementation evaluation, and more than 77,000 enterprises have carried out self-assessment, self-diagnosis, and self-benchmarking, improving market competitiveness by implementing the integrated management standard system of informatization and industrialization.
(4) Steady progress has been made in service-oriented manufacturing. As a new industrial form integrating manufacturing and the services, service-oriented manufacturing has become an important means for reconstructing the global manufacturing value chain. We have issued a special action guide for the development of service-oriented manufacturing, focusing on key models such as supply chain management, product life cycle management, general integration and general contracting services, and information value-added services. We have selected service-oriented manufacturing demonstration enterprises, demonstration projects and demonstration platforms, organized and carried out a series of campaigns under the “Service-oriented Manufacturing Miles,” accelerated a summarization of demonstration experience and case study promotions, and have guided manufacturing enterprises to strengthen their main manufacturing business, extend the service chain, and promote value-added services. We have supported relevant units in the establishment of the China Service-Oriented Manufacturing Alliance and the construction of a service-oriented manufacturing public service platform. Productive service industries such as industrial design, financial leasing, energy-saving services, and information technology services have gradually grown. The service-oriented manufacturing business of construction machinery, power equipment, fan manufacturing, and other industries has developed rapidly. Businesses such as full life cycle management and financial leasing have increasingly become an important source of corporate profits, and the income from corporate services for some enterprises now exceeds 50% of total income.
V. Development, management, and security have been coordinated, promoting the accelerated transformation of the information and communication industry
General Secretary Xi Jinping emphasized that the strategic deployment of building a cyberpower should be advanced in sync with the Two Centenary Goals, towards the goal of basic popularization of network infrastructure, significant enhancement of independent innovation capabilities, comprehensive development of the information economy, and strong cybersecurity guarantees. We have adhered to the people-centered development philosophy, have strengthened the construction of information infrastructure, have steadily promoted network speed improvements and fee reductions, have strengthened key core technology research, have improved the cybersecurity guarantee system, and have promote the deep integration of information technology in economic and social fields, playing a fundamental and key supporting role in developing the digital economy and building a cyberpower.
(1) The construction of a new generation of information infrastructure has accelerated. The information and communication network is an important infrastructure and the “cornerstone” of a cyberpower. We have deeply implemented the Broadband China strategy, have continued to promote network speed improvements and fee reductions, and have accelerated the construction of a new generation of high-speed, mobile, secure, and ubiquitous information infrastructure. Enterprises have been encouraged to actively raise funds. From 2015 to 2017, cumulative investments exceeded RMB 1.2 trillion for optical fiber construction and reconstruction and 4G network construction. By the end of 2016, it only took two years to build the world’s largest 4G network, and cities across the country have fundamentally built optical network cities. The length of optical cable lines has more than doubled compared to the end of 2012, and mobile broadband has been transformed from 3G to 4G through leapfrog development. As of the end of August of this year, the total number of 4G users in China reached 930 million, and the penetration rate among mobile phone users was 67.2%. In terms of internet capacity expansion, internet bandwidth expanded from 984G at the end of 2012 to 5220G at the end of September 2017, making the problem of poor internet connectivity in China a thing of the past. In terms of the international import and export of the internet, the capacity was expanded from 1.7T at the end of 2014 to 5.4T at the end of September 2017, easing the pressure on international import and export access. Since 2015, the three basic telecommunications companies have successively implemented fixed broadband speeds without raising prices, abolished domestic long-distance and roaming charges for mobile phones, and reduced private line charges and international long-distance phone charges for small and medium-sized enterprises, significantly dropping the level of network charges. From 2015 to 2016, the average cost for fixed broadband dropped by 86.2%, and the cost for mobile broadband dropped by 64.7%. In the first half of 2017, mobile traffic costs were further reduced by 33%, and private line costs for small and medium-sized enterprises were reduced by 15%-20%, continue to increase users’ sense of value. In order to narrow the digital divide between urban and rural areas, three batches of pilot programs for universal telecommunications services have been organized and implemented. The central government has allocated a total of about RMB 12.1 billion in subsidy funds to support fiber-optic broadband construction and upgrades in approximately 130,000 administrative villages in 27 provinces (autonomous regions and municipalities). After the completion of the three batches of pilot programs, the goal of 98% of administrative villages nationwide with optical fiber access and more than 90% of impoverished villages covered by broadband network set forth in the National 13th Five-Year Plan outline will be achieved ahead of schedule.
(2) The modern internet economy has risen rapidly. With the in-depth promotion of network speed improvements and fee reductions and the Internet + campaign, the cross-border integration and in-depth application of the internet in various fields of the economy and society, cloud computing, big data, mobile internet, Internet of Things, as well as new e-commerce, mobile payment, sharing economy, and other new business models have developed rapidly. The cumulative number of mobile applications in China has exceeded 8 million, and the cumulative download volume has exceeded 1.5 trillion times, while the number of applications and the scale of distribution both rank first globally. The IoT production chain is improving day by day, and the number of deployed machine-to-machine (M2M) terminals has exceeded 100 million, making China the world’s largest M2M market. In 2016, China’s e-commerce transaction volume reached RMB 26.1 trillion, accounting for about 39.2% of the global e-commerce retail market. The integration of telecommunications, broadcasting, and internet networks has entered the stage of comprehensive promotion, and integrated business has developed vigorously. As of May 2017, the scale of IPTV users exceeded 100 million. The scale of mobile payment transactions exceeded RMB 81 trillion, ranking first in the world. The sharing economy experienced explosive growth, with an average daily online car-hailing orders reaching 25 million, with the scale of shared bicycle users exceeding 100 million.
(3) The new-generation information technology industry system has been continuously improved. To build a cyberpower, we must have our own outstanding technology. In accordance with the requirements of the central government, we have actively studied and formulated a roadmap for the development of core information technology, focusing on breakthroughs in high-end chips, basic software, network architecture, key equipment, and other fields, and have concentrated our strengths to build a technologically advanced, secure, reliable, independent, and controllable industrial system. Time Division Synchronous Code Division Multiple Access Long Term Evolution (TD-LTE Advanced) with independent intellectual property rights has become one of the 4G international mainstream standards, winning the 2016 National S&T Progress Award Special Prize. China took the lead in launching 5G research and development in 2013 and has basically completed the second phase of technical solution testing. Our 5G network architecture, flexible system design, coding solutions, and other technologies have been adopted by international standards and are expected to form a global leading edge. We are a global leader in quantum communication technology. Sunway TaihuLight has become the world’s first supercomputer with a peak computing speed exceeding 93 petaflops. China’s integrated circuit system-on-chip (SoC) design capacity is close to the international advanced level, important progress has been made in the research and development of the 16/14 nanometer process, and the 32/28 nanometer manufacturing process has achieved mass production. The production of high-generation LCD panels is moving towards the 10.5-generation line. New technologies and new products such as quantum dot TVs, OLED TVs, and laser TVs are rapidly emerging. The domestic YunOS system has begun to transform from a mobile phone operating system to an Internet of Everything operating system and has achieved product coverage ranging from automobiles and homes to mobile phones and watches.
(4) The network information security guarantee system has been gradually improved. Without cybersecurity, there is no national security. We have insisted on paying equal attention to security and development, ensuring development with security and promoting security with development. On the one hand, we constantly improved the industry supervision system centered around the internet. We have fully collaborated with the legislation and implementation of the Cybersecurity Law, have formulated and promulgated the Regulations on the Protection of Personal Information of Telecommunications and Internet Users, Guidelines for Cybersecurity Work in the Telecommunications and Internet Industries, Guidelines for the Protection of Industrial Control System Information Security, and other departmental rules, regulations, and normative documents. The Telecom Business Classification Catalog has been revised and promulgated, and new businesses such as cloud services and content distribution networks (CDNs) were brought into the scope of supervision. We have paid close attention to the management of basic internet resources, website filing, and user personal information protection. We have carried out the joint supervision of illegal websites in the Internet + field, and more than 12,000 illegal websites have been shut down in the past five years. On the other hand, we have continued to promote the establishment of technical support capabilities. The national internet financial risk analysis technology platform has been initially established. The real-name registration of telephone users has been fully realized. The fraud phone prevention system has been completed in 31 provinces (autonomous regions and municipalities) across the country, and the detection and interception of fraudulent calls at home and abroad has basically achieved full coverage. The cybersecurity pilot demonstration covers the entire industry, and the cross-departmental security assessment system for new technologies and new businesses has been further improved. The radio management regulations were revised and implemented, and the special campaign to crack down on illegal broadcasting and fake base stations was carried out in depth. We have completed with excellence major event communications, network information security, and radio security assurance tasks as well as relief communications and emergency communications support tasks for floods, typhoons, earthquakes, and other disasters.
The practice of industrial and informatization development in the past five years has fully proved that to accelerate the promotion of new industrialization, we must adhere to the centralized and unified leadership of the Party Central Committee with Comrade Xi Jinping as the core, and we must adhere to the spirit of General Secretary Xi Jinping’s series of important speeches and the new concepts, new ideas, and new strategies for state governance. Looking to the future, we will unite more closely around the Party Central Committee with Comrade Xi Jinping as the core, hold high the great banner of socialism with Chinese characteristics, firmly establish the Four Consciousness, and strengthen the Four Matters of Confidence. We will fully implement the decisions and arrangements of the Party Central Committee and the State Council, fully implement Made in China 2025, and deepen the drive for innovation. We will focus on promoting the strategic transformation of manufacturing from quantitative expansion to quality improvement, accelerate the process of building a manufacturing power and a cyberpower, and make new and greater contributions to the realization of the Two Centenary Goals and the Chinese dream of the great rejuvenation of the Chinese nation.