"Science and technology policy should focus on self-reliance and self-improvement.” The government work report on March 5 proposed a new type of national system, where government crucially organize and promote key technology research and development, and highlighted the main role of enterprise science and technology innovation.

"To promote high-quality development, scientific and technological innovation is the key.” Leng Weiqing, Member of National Committee of the Chinese People's Political Consultative Conference and Chairman of Shanghai Electric Group, submitted a proposal this year, focusing on making breakthroughs in key industrial basic part technology and building a high-end industrial pattern with advanced technology.

Tackle Key Industrial Basic Parts Bottlenecks

The government work report proposed to focus on key manufacturing industry chains and integrate quality resources to promote key core technologies.

Leng Weiqing pointed out in her proposal that industrial basic parts are building blocks that cannot be separated or are usually not separated, and are the foundation and support of the manufacturing industry. In particular, the technical level of key basic parts determines the performance, quality and reliability of products. It concerns the manufacturing ability and quality, and the high-quality development and the realization of the boosting of China's economy.

"China has built a complete and independent modern industrial system, with fast-growing engineering machinery, rail equipment, aerospace, shipbuilding industry and other OEM manufacturing industry," said Leng Weiqing, but some of the key basic materials and parts are still heavily dependent on import, with unsolved bottlenecks.

According to Leng Weiqing, the reasons are as follows: Firstly, the lack of special policy support and long-term investment. Secondly, excess low-end production capacity and lack of high-end products due to small and scattered enterprises. Thirdly, an imperfect talent training and management system.

Instruct Enterprises to Become Specialists and Cultivate a Talent Team at the Source

For this purpose, Leng Weiqing put forward three suggestions. First, develop special policies and implement supporting measures. Draw up a systematic plan aiming to build China into a power of manufacturing and quality, develop special policies to promote the industrial development of key industrial basic parts, strengthen the top-level design, and implement supporting measures. Establish special projects for high-end precision bearings, aviation fasteners, high-end hydraulics, etc., formulate the list of key categories that advance the development of key basic parts, and support the enterprise and scientific research institutions to enhance their independent innovation capability.

Second, reinforce the industry guidance, and instruct enterprises to become specialists. Instruct basic parts manufacturers to be specialized in their own segments, and thus build an industrial pattern and market ecosystem of complementary advantages and coordinated development. Strengthen the upstream and downstream collaboration. Introduce policies to guide industrial basic parts enterprises to cooperate with equipment manufacturers, reinforce their collaboration in design, testing, manufacturing and application, match the production and demand, and achieve common development.

Third, cultivate a talent team at the source, to lay a solid foundation for the continuous and sound development of the industry. Make an overall plan in the education system, discipline setting and qualification certification, and advocate implementing customized talent cultivation schemes for enterprise and university cooperation. Introduce a talent team cultivation plan, increase policy support for leading talents and urgently-needed talents, and strengthen talent introduction and incentive. Create a positive public opinion that highly values and respects talents in the basic industries, and enhance the industry attractiveness.

Rely on Advanced Technology as “a Pillar of the Great Power” to Promote High-end Industrial Upgrading

Since the traditional industry constitutes the cornerstone of the modern industrial system, its transformation and upgrading is directly associated with the construction of the whole modern industrial system. According to the Ministry of Industry and Information Technology, China will focus on high-end, intelligent and green development, to move the traditional industry up the value chain.

According to Leng Weiqing, as the largest manufacturing country in the world, China should seize the opportunity of this new round of industrial revolution, strive to build a new industrial system led by Chinese-style modernization, improve the industrial chain and supply chain security in competitive industries, make far-sighted deployment for future manufacturing and technology roadmap, cultivate competitive edges in advanced manufacturing industry, and achieve the leapfrog development of the made-in-China towards the high-end part of the value chain.

In this process, we must rely on advanced technologies, and master key technologies. Leng Weiqing said that Shanghai Electric has successfully conquered a series of technical challenges in the previous five years. It has taken the lead in 10 and participated in another 10 National Science and Technology Major Projects of “High-end CNC Machine Tools and Basic Manufacturing Equipment”, offering “Machine Tools” to various industries.

Seeing the strategic opportunity, Shanghai Electric adheres to equipment as the primary business, science and technology as the primary productive force, talent as the primary resource, and innovation as the primary driving force, stresses on collaboration internally, and expands cooperation externally. Statistics show that Shanghai Electric has invested over CNY 25 billion in science and technology in the past 5 years. The proportion of annual average scientific research investment in operating income exceeded 4%, and hit a peak of the recent three years in 2022. Shanghai Electric boasts 6 key state laboratories, 8 national-level corporate technical centers, 3 academician and expert workstations, and 8 provincial engineering technology research centers.

Moreover, during the construction of the modern industrial system, Shanghai Electric, one of the national high-end equipment manufacturing enterprises, will continue to uphold self-reliance in science and technology, attach equal importance to independent innovation and open innovation, build the high-end industrial pattern based on advanced technologies, boost the high-quality economic development in China, and contribute to the Chinese-style modernization.