After the 18th National Party Congress, the development of China’s economic situation has prompted a profound adjustment of economic policies. The Fifth Plenary Session of the 18th CPC Central Committee conforms to the inherent requirements of the new normal of China's economic development, clearly clarifies the guiding ideology, basic principles, and main goals of China's economic and social development by entering a phase of success in building a well-to-do society, and proposes innovation, coordination, green, Open and share five development concepts. From the “three phases of superposition†to the “new normal†to the five major development concepts and supply-side structural reforms, it is a process of continuous exploration and deepening of understanding. The Central Economic Work Conference recently held that “to promote economic development, we must pay more attention to improving the quality and efficiency of development. To stabilize economic growth, we must pay more attention to the supply-side structural reforms.†Pushing supply-side structural reforms is to adapt to and lead economic development. The major innovation of the new normal is an active choice to adapt to the new situation of comprehensive national strength competition after the international financial crisis and is an inevitable requirement to adapt to the new normal of China’s economic development.
From the perspective of supply side reform to see how domestic special car companies develop
The practice of promoting supply-side reforms was not started today. In fact, in the 1980s, the household contract responsibility system reform of joint production, the development of township and village enterprises, the overall reform of the economic system in the mid-1990s, and the strategic restructuring of the state-owned economy in the late 1990s, 10 The comprehensive reforms of the Third Plenary Session of the Eighth National Party Congress are all reforms on the supply side. So what exactly is the structural reform on the supply side and why is it necessary to carry out this reform? How does the structural reform on the supply side enlighten the current domestic special-purpose vehicle enterprises? The author will briefly review and elaborate on the above issues.
First, what is the supply-side structural reform?
In 2015, the Central Economic Work Conference put forward five tasks: “capacity removal, inventory de-stocking, de-leveraging, cost reduction, and short-cuttingâ€. These five tasks correspond to the most prominent structural contradictions and problems at present. The so-called "supply-side reform" refers to the reform initiated by the supply side. The so-called “structural reforms†are reforms that are guided by structural issues. The so-called “supply-side structural reforms†refer to the reforms initiated by the supply side and aimed at the economic structural problems. The structural reform on the supply side is to correct the mismatch between the supply and demand structure and the distorted distribution of factors, to solve the problem of effective supply and to adapt to changes in market demand, so that supply and demand can achieve a new balance at a higher level; that is, to expand effective supply and increase supply. Structural adaptability and flexibility, improving supply quality, creating new supply, and cultivating new demands; is to play a decisive role in the allocation of resources in the market, to activate production factors such as labor, capital, and land that have been precipitated by excess production capacity, and to make production factors from inefficient areas. Moved to the high-efficiency sector, from the already surplus industry to the market-demanding industry, and then optimize resource allocation and increase total factor productivity.
Second, why should supply-side structural reforms?
(1) The marginal benefits of the macro-control policies on the demand side are decreasing, and the side effects are becoming larger.
Since the outbreak of the international economic crisis in 2008, in order to maintain growth or steady growth, China has adopted a series of demand management policies, such as active fiscal policies, stable monetary policies, and government investment policies. These policies did achieve some guaranteed growth. However, the marginal effect of demand management policies has been declining since then. Although steady growth measures have been adopted several times in succession, GDP growth has been at a height of 12.1% since the first quarter of 2010. The shock went down until 6.9% in the third quarter of 2015, and the downward trend has not yet been reversed. As demand management policies are mainly driven by government investment and the release of liquidity, the “troika†is used to achieve economic growth, which is a short-term stimulus policy. As a result, while bringing economic growth, it also results in overcapacity, high prices, or The side effects and sequelae, such as asset price bubbles, increasing pressure on local debt, increasing pressure on resources and the environment, declining corporate profits, shadow banking and rising bad assets of banks, etc.
(B) Solve the current structural contradictions in China and realize the need for sustainable development
The current structural problems in China mainly include six structural issues such as industrial structure, regional structure, factor input structure, emission structure, economic growth dynamic structure, and income distribution structure. Among them, the problem of industrial structure is reflected in the high proportion of low-value-added industries, high-consumption, high-pollution and high-emission industries; regional structural problems are manifested in the unreasonable regional distribution of population; the urbanization rate of household registration population is low, and regional development is uneven , Inconsistent and inequitable; the problem of factor input structure is reflected in the high proportion of general resources such as resources, energy, labor, and funds, and low input of high-level elements such as talents, technology, knowledge, and information; the discharge structure is reflected in waste water and waste gas. , waste slag, carbon dioxide, etc., have a high proportion of emissions; economic growth, power structure problems are manifested in too much dependence on investment, consumption, and export “troikaâ€, especially investment to stimulate economic growth; income distribution structure problems are reflected in the urban-rural income gap, industry Income gaps and income gaps between different groups are large. The structural problems in these six aspects are both relatively independent and superimposed on each other and need to be addressed in a targeted manner through structural reforms on the supply side.
(3) The need to release China's economic potential.
Through the structural reform on the supply side, first, it is possible to form a new entity, that is, to play a decisive role in the allocation of resources in the market, to give play to the leading role of enterprises, entrepreneurs, and entrepreneurs in economic development, while at the same time to simplify the devolution of power and change Government functions restrict the government’s “visible hand†and give full play to the role of the government. Second, it can cultivate new impetus by cultivating new growth drivers through comprehensive reforms, forming new economic growth points through comprehensive innovation, and improving total factor productivity. To achieve sustainable economic development, the third is to be able to develop new industries, that is, to respect and adapt to economic laws and market laws, and to eliminate surplus production capacity and zombie enterprises in a timely manner so that the market can be cleared in a timely manner to avoid waste of resources and resolve the economic bubble in a timely manner. To avoid systemic risks, on the other hand, we must vigorously develop new industries, new technologies, and new forms of business.
(d) The need to improve the country's competitiveness.
Under the conditions of an open economy, if the supply capacity of domestic enterprises and individuals improves, even if domestic demand does not increase, economic growth will be maintained, because companies and individuals with increased supply capacity will open up external markets to meet the needs of foreign markets and make foreign investments. Human money. Conversely, if the supply capacity of domestic enterprises and individuals does not increase, even if domestic demand expands, it does not necessarily bring about economic growth, because if the supply capacity of domestic enterprises and individuals does not increase, the expanded domestic demand market is likely to increase. Occupied by foreign companies.
Third, the supply-side structural reform inspired the special car company
Supply-side reform mainly emphasizes the decisive role of the market in allocating resources, stimulating the vitality of market players, adapting to the diversification of demand, high-end and service-oriented trends in market competition, and deploying more resources to adapt to changes in market demand. Through supply-side reforms, we will increase effective supply capacity, create new supplies, increase supply quality, expand consumer demand, and enhance economic endogenous power and vitality to create conditions for sustained, stable and healthy development of the medium and long-term economy. Then, as a subdivision plate of the manufacturing industry, special-purpose vehicle manufacturing companies should take measures to grasp and use the country’s policy of supply-side structural reform on the supply side of the country and rejuvenate in the deep-water zone of reform. The author believes that the following points must be understood, thoroughly understood, and practiced. The following points are for reference only.
First, continuously enhance the ability to innovate and meet the individual needs of consumers. Special-purpose vehicles companies must adhere to technological innovations and not relax, continue to attract outstanding talents, take the path of innovation-driven and endogenous growth, and strive to form a new situation of “everyone’s innovationâ€. With the increasing influence of the Internet economy, the level of consumer participation is getting higher and higher. In the past, the imitative-type row-spending-type consumption phase basically came to an end, and personalization and diversified consumption became mainstream. Therefore, special vehicle manufacturers must transform their advanced manufacturing methods and business models, such as individualized customization, flexible production, and networked sales, to meet increasingly personalized and diversified consumer demands, and to support the upgrading of consumer structures.
Second, we must formulate production capacity according to market demand, prevent blind investment expansion, cause excess capacity, and break the capital chain. The 11th China Finance Leadership Meeting and the Politburo meeting on December 14 have proposed the principle of “proactively and steadily promoting the survival of the fittestâ€. Prime Minister Li Keqiang pointed out on December 2 that he must lay a knife on companies with “zombie enterprises†and “absolute excess capacityâ€. At the same time, it also proposes “to support enterprise technological transformation and equipment renewal, reduce the debt burden of enterprises, innovate financial support methods, and improve the ability of enterprises to invest in technological transformationâ€, and accelerate the cultivation of new economic growth patterns through investment restructuring and more emphasis on connotative growth. At present, although China’s special-purpose vehicles have undergone decades of hard work and hard work and continue to learn from foreign technologies, they have made great progress. However, compared with foreign famous brands, there is still a large gap and they still remain basically in imitation. Phases (mainly referring to tops), development and design similarities are common, there are few varieties of special vehicles, and product homogeneity is very serious. Most enterprises can only produce medium-sized ordinary special-purpose vehicles, and other types of special-purpose vehicles still have relatively small output and simple functions. High-tech, high-value-added, high-reliability domestic-made special vehicles are still insufficient, and chassis companies and special-purpose vehicle companies are seriously out of touch. These have seriously affected the structural adjustment and industrial upgrading of China's special-purpose vehicle industry. The entire special-purpose vehicle industry has low barriers to entry. The special-purpose vehicle market is promiscuous, and the homogenized low-end special-purpose vehicle products have excess production capacity. If we ignore this actual blind project or market, it is bound to be a bitter fruit.
Third, eliminate backward production capacity and achieve product upgrades. With the adjustment of the industrial structure and transformation and upgrading in all aspects, the future is an era of fighting intelligence rather than hard work. Special-purpose auto companies must take the road of intelligence, high-end, high-tech, high value-added, and high-tech. Special auto companies must seize the opportunities of new technologies, new formats, and new business models, and accelerate the development of special vehicles. Breakthrough in smart manufacturing, applying new technologies, developing new business models, and innovating business models, realizing the shift from low-end to high-end products, the transition from primary products to end-use consumer products, and the transition from extensive and high energy consumption to green, low-carbon recycling, and quality. Benefits change from inefficient to efficient.
Fourth, seize the trend of service manufacturing and make the service more user-friendly. Special vehicle companies must strengthen communication and exchange with customers. In the manufacturing service model, customers are no longer passive product acceptors, but participate in the design and production of products. This requires customers to participate in the effective way and means of interaction between design and production, effectively manage customer expectations, and improve product reliability, manufacturability, maintainability, recyclability, and reduction while satisfying individual customer needs. cost. Service-oriented manufacturing is the discovery of demand, the satisfaction of demand, and the creation of demand, and this demand is not only the demand of the product, but also the demand of the service. Based on the needs of users, products that fully meet the needs of users. Integrate demand into products and make products more accurate and efficient. Because only the products that meet the needs of users are the value foundation in the transition to service-oriented manufacturing. The next step is to dig deeper into customer needs and expand value-added services. Special-purpose vehicles companies should be good at discovering the deep-seated real needs of customers, integrating superior resources, satisfying consumers' needs from the supply side, maximizing customer value, and creating new customer demands.
Fifth, introduce advanced technologies, build flexible production lines, and actively promote intelligent production. The structural reform on the supply side places more emphasis on the input of high-level elements such as talents, technology, knowledge, and information. With the landing of the “Made in China 2025†strategy, the integration of information technology, smart technology, and manufacturing processes has deepened, presenting design information, With the development trend of intelligent equipment, process automation and management modernization, intelligent production will play an important role in reducing manufacturing costs and improving product quality and production efficiency. Therefore, special-purpose vehicle companies should set their sights on the long-term. Through research, they should set up flexible production lines ahead of time for advanced and special-purpose vehicle companies at home and abroad to enhance their flexibility and risk resistance.
Fourth, the conclusion
The Central Economic Work Conference proposed that the current major problems in the Chinese economy are structural issues rather than cyclical ones. To adapt to and lead the new normal of economic development, it is necessary to push forward the structural reform on the supply side. The key point is to grasp the five key tasks of capacity reduction, inventory destocking, de-leverage, cost reduction and short-cutting. The special vehicle company needs to learn how to make good use of the socialist political economy with Chinese characteristics, combine the company itself, advance supply-side structural reforms, and achieve a shift from a low level of supply-demand balance to a high level of balance between supply and demand, reducing inefficiencies and low-end supply. , expand effective and middle- and high-end supply, and enhance the adaptability and flexibility of its own supply structure to changes in demand. Through structural optimization and upgrading of elements, the total factor productivity will be increased and the healthy and sustainable development of the company's operations will be promoted.
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