Wei Jianguo: The era of new physical enterprises has arrived and will help China’s economy move towards a global leader

Translated from the Headlines (Toutiao 头条新闻)

Author: Economics Home(经济学家园)

Author: Wei Jianguo Former Deputy Minister of Commerce

At present, China is facing major changes unseen in a century, and the global economic recovery is weak. As the new crown epidemic has not yet been fully controlled, our country is upgrading its digital industry, accelerating the vigorous development of new physical enterprises. The combination of new digital technology and physical enterprises is a major decision made in line with China’s current national conditions and to meet the eastward trend of global industries. This is crucial to the implementation of the dual circular economy pattern in my country in the next step. This move is very important for China.

So what exactly is a new type of entity enterprise, how to develop and encourage the new type of entity enterprise, and what role and significance do it have?

What is the new physical enterprise?

The new type of entity enterprise is the combination of new technology and industrialization to generate new business formats, especially the use of digital to support the development of traditional industries, which is very important for economic development.

I divide the new entity enterprises into three categories: the first category is the original traditional industries in our country, which integrate new digital technologies; the second category is the traditional industries that need to be digitized in their development and carry out revolutionary technological innovations; the third category With the development and innovation of information technology, new industries, and new departments have evolved and derived from it.

These three categories cover what we are talking about as a new type of entity enterprise. At present, from a national perspective, it is still in a stage of development, but in the next step it will release more increments than the original traditional industries, and it will also exceed the pure science and technology industries. That is to say, although the new entity enterprise is currently in a state of being ready to take off, it will have more remarkable achievements on the economic stage of the whole of China in the next step, and it will form an unstoppable trend in the future.

Why is the era of the new type of physical enterprise coming?

I think there are three signals for the advent of the new physical enterprise era.

The first signal is that as a major global industrial manufacturing country, China has the most complete industry, most complete categories, and mature upstream and downstream chains. We will be the best-developed industrial entity in the future and the country with the best developed industrial system recognized by the United Nations. . How to build a higher level on the original basis, it is necessary to use the digital economy to combine with the existing traditional manufacturing entities to form new industries, new formats, and new models.

This can be said to be the next step for China’s overall economic development, especially industrial and commercial development, as well as the new connotation of the development of all walks of life. This is a major decision made by China on a new development path. It is not only related to our current development, but also to the long-term development of the next 30 or 50 years.

The second signal is that digital technology plus the real economy from a new entity enterprise, which we call the “three new industries” or “new entity enterprise”, but it is definitely not 1+1=2, but 1+1 >2. This new type of physical enterprise is formed based on our original strengths, such as digital technology, smart city, digital industry, and the real economy. It is not simply regarded as a physical reaction but generates powerful energy like a chemical reaction, which is an acceleration to the current original traditional economic upgrade. And it will inevitably produce a huge sensation and influence. Because there are not many countries in the world that are implementing digitalization and the real economy. Developed countries such as the United States, Europe, Japan, etc., are not doing enough to use digitalization and the real economy, especially to enhance the integration of traditional manufacturing. Applying high-tech achievements and new technology research and development to a complete industrial chain and supply chain is a manifestation of new economic vitality. China’s economy can get a lot of benefits from this, and it will have a greater effect. Especially for my country’s traditional manufacturing industry, it will be an excellent transformation and upgrading for the existing real economy.

After the epidemic, there will be an eastward migration of manufacturing technology, capital, and talents around the world in the future, and China will be the most promising country in the process of this eastward migration.

The third signal I think is very important. This combination is a combination of internal and external, top and bottom, and a combination of soft power, digital technology, the real economy, and industrial economy. This combination can make a qualitative leap in China’s industry, agriculture, and economic fields such as science, education, culture, technology, and commerce.

This combination of internal and external, upper and lower, soft and hard, coupled with China is the world’s super-large-scale market, these will promote China to become the world’s largest innovation center. And this kind of innovation will promote China’s economy to become a global leader.

What is the role and significance of the new entity enterprise?

The so-called “chemical reaction” does not refer to a simple, mathematical, or physical improvement on the original basis, but a more important, chemical reaction. It penetrates into various sectors and various sectors of the manufacturing industry. For example, because of its innovation, this response has penetrated into the fields of R&D and manufacturing, affecting hundreds of supply chains and reforming production factors.

For example, Huawei, which we are focusing on now, is a physical enterprise, a mobile phone manufacturer and a communications industry manufacturer, which produces routers and communications equipment, but if it is given new technologies, including cloud computing and 5G, it is combined in this way. , It is not simply upgrading the original real economy, but infiltrating more important chemical reactions into various fields.

In terms of technology and industry, this is a great innovation. Therefore, the new technologies and new ideas in the new entity enterprise are not separated from our traditional industry but are organically combined. This combination produces a chemical reaction. Then it will release a huge amount of energy. This energy is no less than the energy of our entire past. Therefore, it is very important for China to make this move well.

Practices of new domestic entities

Chinese leaders have always been farsighted, and we are leading in the overall industrial layout, including the integrity of our manufacturing layout, and the seamless integration of the entire upstream and downstream chains. If digitalization is added, the business model will be even higher. Scientific and technological achievements. In terms of new materials, new technology, life medicine, smart cities, etc., diversified and personalized recombination, including many new models, is more outstanding. Combining new elements with the existing people’s pursuit of a better life will produce A new business model that produces results beyond imagination. This new type of physical enterprise is the world’s first and also leads the development of global digital technology and the real economy.

For example, in general, traditional sales shops sell what they sell. This is a trading concept from ancient times to the present. Through the innovation of a new type of physical enterprise, we are now the other way round. It is reverse thinking. I will sell what we need. At present, JD.com is a typical representative of the new entity enterprise. It covers clothing, food, housing, transportation, including home furnishings, and electronic products through digitization and informatization. According to the needs of such consumers, it guides manufacturers to produce personalized products. The terminal of sales, a traditional channel for what to sell, is upgraded to understand more consumers’ needs in the next step, and then transformed into a digital industrial chain hub that takes consumers’ needs as the starting point. Through radiation influence on production bases, industrial bases, and R&D bases, JD.com has become a distribution center, which breaks through its original pattern of being a pure sales channel and sales network.

This change in form has driven the development of the entire logistics industry. The express delivery industry has been refined, including specialized medical express delivery, household, and department store express delivery, and food and vegetable express delivery. The development of the industry has led to the formation of industry, increased domestic employment, and accelerated the development of the industry. For example, the flash delivery business requires motorcycles and electric vehicles. Then the sales of these needs have driven our overall consumption.

While exerting its growth efficiency with the development experience of new physical enterprises, JD.com relies on solid infrastructure, efficient digital and intelligent social supply chain, and innovative technical service capabilities. Companies have set an example of “helping reality” in reducing costs and increasing efficiency, and have “assisted” in order to strengthen the real economy, reduce costs horizontally, increase efficiency, and improve vertical quality. This is far greater than the value of the company’s own development.

How to encourage the development of new entities?

First, the government needs to issue relevant policies. For example, our current 15% corporate income tax concession for science and technology companies, I think that a new type of economy like this must abide by the new economic system in terms of policies.

Second, in the context of the dual cycle, for example, in the free trade zone and the free trade port, new economic entity industrial parks, new entity enterprise parks can be formed, and some such industrial clusters will be formed in various places in the future. Give key support, and the periphery of the industrial cluster should also enjoy the same preferential treatment.

Third, science and technology departments, especially universities’ science and research institutions, should try their best to connect with traditional industries. University scientific research institutions can take the initiative to connect with the industry and must carry out certain system optimizations. In the same way, the industry has to actively seek scientific research institutions and cooperate with university research departments. Even foreign talents need preferential policies or support, not only in terms of income tax but also in other policy levels.

Fourth, the government and intermediary agencies should also increase their service efforts, which is to solve our current situation of information asymmetry. We don’t know which companies need new technologies to combine, and we don’t know which companies have this need. Government departments need to play the role of a matchmaker. Local Development and Reform Commissions, Bureaus of Industry and Information Technology, and scientific research offices understand the needs of enterprises, and they must also understand the connection of scientific research projects of some scientific research institutions and university research institutions. In terms of helping companies find objects, especially chambers of commerce, business associations, and societies, the intermediary services should be transferred to this aspect.

For companies and individuals, they should raise their awareness of distress. If we are still waiting and lingering now, we will definitely be eliminated in the future tide of the overall Chinese economy. We must have the confidence to be the first in the world, and we must bravely move towards the goal.

After industrial development enters high-speed globalization, China will further highlight the concepts of fairness, diversification, justice, equality, coordination, mutual assistance, and reciprocity. China’s own confidence comes from the maturity of our digitalization and industrialization. We are striving to continue to innovate. New types of physical enterprises will become a big and unstoppable trend, which will promote the development of China’s economy towards innovation, and China will become the world’s attention. hero.