On March 4, Li Yizhong, member of the National Committee of the Chinese People's Political Consultative Conference and former Minister of Industry and Information Technology, stated that China has a lot of industrial structural problems and contradictions, and the growth of resources and energy consumption is too fast. The total energy consumption growth rate must be kept below 5%. It is difficult to sustain the economy for a long time. He also said that it is necessary to speed up reforms such as electricity prices and resource taxes.
Li Yizhong stated that China's industrial and real economy has achieved remarkable results, but there are also many problems and structural contradictions: First, there is a lack of independent innovation. The R&D input of industrial enterprises above designated size in China only accounts for 0.69% of business income, while foreign companies and industries are generally 2%-3%, and emerging industries are 10%-15%. Our independent R&D investment is insufficient, and some key technologies, components, parts, and even complete sets of equipment are dependent on imports, resulting in being controlled by others.
The second is the poor quality and efficiency of development. China's industrial sales profit margin is only 6.14%, of which the steel industry is less than 3%, and the latest data is only 2.55%. Even the sales margin of electronics manufacturing as an emerging industry is only 2.54%. The industrial added value rate is only 26.5%, and the developed countries are 35%-40%.
Third, the degree of emphasis on resources and environmental issues is not enough. Last year, China’s total disposable energy consumption was approximately 3.5 billion tons of standard coal, an increase of 7%, accounting for 46% of the world's total. The amount of iron ore used was 1.7 billion tons and imports were 680 million tons. Such a development model will be difficult to sustain in the long run.
Li Yizhong said that the total energy consumption growth rate must be reduced from the current 7%-8% to less than 5%. “For industry and enterprises, there must be a sense of urgency. It is necessary to speed up the transformation and upgrading and adjust the structure.†He suggested that the country should speed up the reform in related fields, especially the electricity price and resource tax reform.
Li Yizhong stated that China's industrial and real economy has achieved remarkable results, but there are also many problems and structural contradictions: First, there is a lack of independent innovation. The R&D input of industrial enterprises above designated size in China only accounts for 0.69% of business income, while foreign companies and industries are generally 2%-3%, and emerging industries are 10%-15%. Our independent R&D investment is insufficient, and some key technologies, components, parts, and even complete sets of equipment are dependent on imports, resulting in being controlled by others.
The second is the poor quality and efficiency of development. China's industrial sales profit margin is only 6.14%, of which the steel industry is less than 3%, and the latest data is only 2.55%. Even the sales margin of electronics manufacturing as an emerging industry is only 2.54%. The industrial added value rate is only 26.5%, and the developed countries are 35%-40%.
Third, the degree of emphasis on resources and environmental issues is not enough. Last year, China’s total disposable energy consumption was approximately 3.5 billion tons of standard coal, an increase of 7%, accounting for 46% of the world's total. The amount of iron ore used was 1.7 billion tons and imports were 680 million tons. Such a development model will be difficult to sustain in the long run.
Li Yizhong said that the total energy consumption growth rate must be reduced from the current 7%-8% to less than 5%. “For industry and enterprises, there must be a sense of urgency. It is necessary to speed up the transformation and upgrading and adjust the structure.†He suggested that the country should speed up the reform in related fields, especially the electricity price and resource tax reform.
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