China Invests in Innovation

China Invests in Innovation

China Invests in Innovation

The Ministry of Industry and Information Technology (MIIT) said China will set up around 40 national manufacturing innovation centers by 2025.

In detail, the centers will be devoted to information technology, intelligent manufacturing, new materials and biomedicine.

The MIIT has promiseto improve the intellectual property management system to promote cooperation and profit sharing between centers.

To build a better manufacturing sector, China came up with the “Made in China 2025” plan last year, to shift the country away from low-end manufacturing to more value-added production.

In this year’s government work report, Premier Li Keqiang put forward the craftsmanship concept in manufacturing for the first time, and stressed efforts to diversify the varieties of products, increase quality and create more brands.

This year, he promoted Made-in-China products on many occasions, offering suggestions to upgrade the manufacturing industry and holding high expectations for its development.

“Manufacturing has to become ‘smarter’, relying on technology such as the internet, cloud computing and big data.”

The “Made in China 2025” strategy and Internet Plus are inseparable, as we must upgrade the manufacturing industry and boost intelligent manufacturing, said the Premier.

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.

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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