Convergence of traditional emerging industries can not "make another set"

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Since the rise of emerging industries to national strategies, any contagion that is destined for it will become the focus of public opinion. One rumor about the new industry’s investment of 10 trillion yuan has just been clarified, and the path to rejuvenate the development of strategic emerging industries has been renewed.
Accompanied by a series of preferential policies about to be announced, some new-type enterprises related to emerging industries are springing up, but the vitality of these new-type enterprises that greet the policy has been questioned.
According to informed sources, the "Strategic Emerging Industries Development Plan" that is being drafted stipulates that strategic emerging industries-related enterprises are expected to obtain a series of preferential policies in areas such as taxation and finance, such as tax relief, consumer subsidies, government procurement, and R&D support. And talent attraction.
"The development of strategic emerging industries is a sub-strategy of the country's national economic strategy to adjust the economic structure and transform the mode of development. Therefore, the state will provide two-wheeled driving of funds and policies." Executive Dean, School of Management and Industrial Development, Peking University Rain told the reporter of the "China Sankei Shimbun".
In an interview with a reporter from the “China Sankei Shimbun”, Li Yuheng, a senior research fellow at China Investment Corporation, said that government agencies should provide a favorable environment for the development of strategic emerging industries. Fund subsidies, policy support, and market cultivation are all common features of government departments. The macro-control measures should be said that these are necessary.
However, industry sources have warned that in the case of immature markets, it is necessary for the state to grant preferential policies to some emerging industries. However, it is terrible for a company that has no technology and no capital to start blindly. Compared with cage-changing birds, walking on two legs is a route that is more suitable for industrial upgrading and the rejuvenation of strategic emerging industries.
The so-called “changing cages and changing birds” means shifting the existing traditional manufacturing industries from the current industrial bases and transferring advanced productive forces to achieve economic transformation and industrial upgrading. This is a policy that has been implemented in many developed provinces such as Guangdong.
According to industry insiders, there are many problems in this area, especially before the market demand for new industries has yet to be established. Newly-established new-type companies face the problem of how to develop. "Funding is the biggest problem. It is not enough to rely solely on the government's investment funds and preferential policies."
This is mainly determined by the characteristics of emerging industries. Yu Yu believes that the most significant features of emerging industries are high-risk, high-input, and high-tech additions. Funds need to have a foundation and strength, and science and technology are not one-time, there must be a growing process. Our transformation is very urgent, but technological innovation cannot be solved at once.
The Director of the High-tech Department of the National Development and Reform Commission, Mr. Ruan Chengyuan, clearly stated that the "Strategic Emerging Industries Development Plan" that is being drafted does not focus on investment, but on how to improve laws and policies and cultivate markets.
Li Yuheng said that the current government funds are mainly used to subsidize the R&D work of enterprises. The contingency plan is more obvious and less important. Most of them play an auxiliary role. And subject to the amount of government budget, the limited subsidy funds must be used "on the knife edge."
Under such conditions, adhering to two-legged walks may be able to better revitalize strategic emerging industries. The so-called two-legged walk is to insist on supporting some large-scale existing enterprises with R&D strength. While they are developing traditional industries, they are encouraged to actively develop technologies for emerging industries and use the profitability of traditional industries to nourish new industries.
As an example, BYD Company, which is known for its R&D of new energy vehicles, relies on the sales revenue of traditional vehicles. BYD has the strength to develop electric vehicles. In the field of electric vehicles, BYD has spent five to six years investing billions of dollars in funds.
Li Yizhong, minister of the Ministry of Industry and Information Technology, has also repeatedly stressed that the development of strategic emerging industries should form a connection with traditional industries and cannot be pursued separately. For example, new materials, such as "functional materials" and "structural materials," are inseparable from steel and can not be separated from petrochemicals, and cannot be separated from the petrochemical industry. There is no basis for development.
Yu Yu pointed out that the cultivation of new industries should focus on the immediate and long-term, and the current need to support long-term stability. The role of the government is regulation and service. The main force is the enterprise. The cart before the horse can not be reversed. At the same time, it is necessary to unify the development of strategic emerging industries with other forms of economic and social development. Otherwise, the individual troops cannot advance suddenly.

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