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Round table “Sustainable Industrial Development: the Experience of the BRICS”
Round table “Sustainable Industrial Development: the Experience of the BRICS”
Vienna International Centre, November 20th, 2012
The speech of Mr. Yin Zonghua, Director General, DITEA of the Ministry of Commerce of China
Dr. Yumkella, Director General of UNIDO
Mr. Luetkenhorst,
Mr. Sundaram,
Colleagues from BRICS countries,
Ladies and Gentlemen,
Good afternoon.
It’s a great pleasure for me to join you in this round table. I should thank Dr. Yumkella for introducing to us report “Structural Change, Poverty Reduction and Industrial Policy in the BRICS”. China appreciates the efforts made by UNIDO and other collaborating institutes to draft the report, and the proposal to promote the cooperation among the BRICS under the framework of UNIDO.
To take this opportunity, I would like to share with you some of China’s experience in its industrial restructuring and development.
As the mainstay of China’s real economy, industry has always played a substantial role in the national economy. It accounts for 40% of China’s gross domestic product and contributes 50% to its economic growth. As sustainable development becomes a global trend, China’s industry also faces the inevitable shifts of structure and development pattern. In the process, China has made progress mainly in the following areas.
First, optimized internal structure. Through restructuring, traditional sectors have been renovated and upgraded, strategic emerging industries have gained strength, and production-oriented services have been expanded fast.
Second, improved technological structure. China strives to build up a technological innovation system that is led by enterprises and market-oriented. It supports businesses to adopt new techniques, processes, equipment and materials, change, renovate and upgrade existing facilities and processes, and guide various factors of production to flow into key industries and products.
Third, better organizational structure. Since 2003, the Chinese government has issued four integrated policy documents, including the Law Promoting SMEs and Opinions on Supporting the Healthy Development of Small and Micro-Businesses. It has put in place a host of fiscal and tax incentives and promoted the development of small and medium-sized financial institutions and credit guarantee agencies for SMEs, to alleviate their financing pressure.
Forth, more reasonable geographical distribution. The Chinese government has provided guidance to the orderly transfer of industries. It has strengthened industrial support to regions inhabited by ethnic minorities in Western China and accelerated the relocation of industries from the eastern coastal areas to the Central and Western China. During the 11th five-year plan （2006 -2010） period, the share of central and western regions in the industrial value-added of the national economy, rose by 5.8 points of the percentage.
Fifth, improved market structure. In 2011, the share of manufactured goods in China’s total merchandise export rose to 95% from 90% in 2001. The export of mechanical and electronic products and hi-tech products accounted for 57% and 29% respectively out of the total export.
Industrial restructuring as a whole creates new jobs. By the end of 2011, 225 million people had been employed in the industry-dominated secondary sector, which accounted for almost 30% of the entire work force and had kept growing for ten consecutive years. In the process of industrial development, we have also noticed certain slowdown in growth as a result of phasing out backward production capacity, readjusting structure and changing the development pattern. However, we are convinced that only by improving economic structure and the quality and efficiency of development, can the Chinese economy become more internationally competitive and more resilient to risks and maintain steady and sustainable growth in the long-run.
Ladies and Gentlemen,
Now I would like to talk about the FDI’s conducive role in industrial development of China
The experience of more than 30 years’ reform and opening-up has proved that FDI could uplift the level of manufacturing industry, enhance the export competitiveness and promote industrial development of china.
First, technology brought by FDI is conducive to development of hi-tech industry in China.
Second, competition brought by FDI, forces the domestic enterprises to improve management and innovation capability, enforce transformation and upgrading.
Third, FDI could lead to industry aggregation and enhancement of the global competitiveness of the Chinese enterprises.
Forth, foreign-funded enterprises are conducive to introduce high level managerial human resources.
Fifth, TNCs’ transfers of R&D Centers to China enhance R&D level of China, and help the enforcement of our national innovative strategy.
Ladies and gentlemen,
China is the strong supporter of the south-south cooperation. The Chinese government has always appreciated the role of UNIDO in helping sustainable industrial development of the developing countries, and actively participated in the activities organized by UNIDO. We sincerely wish UNIDO could play a bigger role in the era of sustainable development and a new trial of industrialization. In our view, resource efficiency, sustainable sources of energy, poverty reduction through productive activities, trade capacity-building, industrial and technological innovation, as well as issues of social inclusion such as youth employment and economic empowerment of women, are the main areas where UNIDO has its strong comparative advantages.
In recent years, China and UNIDO has jointly carried out lots of south-south cooperation on capacity-building for the developing countries. Through the workshops jointly organized by both sides, nearly 300 industrial officials and technicians from other developing countries have been trained on the knowledge about solar energy, resource efficiency, and sustainable sources of energy and investment promotion. We are willing to strengthen our cooperation with UNIDO in the above-mentioned area, and share with other developing countries the experience and lessons in our process of industrialization.
Dear colleagues,
To conclude, I would like to highlight the role that UNIDO could play in facilitating BRICS cooperation.
Through the last few decades, UNIDO has established various centers such as ITCs, ITPOs, NCPCs and SPXs in BRICS. We sincerely hope UNIDO could make full use of all these centers and turn them into a comprehensive cross-sector platform for promoting industrial development. We should encourage and support enterprises, especially SMEs from BRICS to strengthen technical exchange and cooperation through this platform, and expand their investment and technology transfer to other developing countries as needed, so as to promote their industrial development to create more jobs and to reduce poverty more dramatically.
Thank you for your attention.
Vienna International Centre, November 20th, 2012
The speech of Mr. Yin Zonghua, Director General, DITEA of the Ministry of Commerce of China
Dr. Yumkella, Director General of UNIDO
Mr. Luetkenhorst,
Mr. Sundaram,
Colleagues from BRICS countries,
Ladies and Gentlemen,
Good afternoon.
It’s a great pleasure for me to join you in this round table. I should thank Dr. Yumkella for introducing to us report “Structural Change, Poverty Reduction and Industrial Policy in the BRICS”. China appreciates the efforts made by UNIDO and other collaborating institutes to draft the report, and the proposal to promote the cooperation among the BRICS under the framework of UNIDO.
To take this opportunity, I would like to share with you some of China’s experience in its industrial restructuring and development.
As the mainstay of China’s real economy, industry has always played a substantial role in the national economy. It accounts for 40% of China’s gross domestic product and contributes 50% to its economic growth. As sustainable development becomes a global trend, China’s industry also faces the inevitable shifts of structure and development pattern. In the process, China has made progress mainly in the following areas.
First, optimized internal structure. Through restructuring, traditional sectors have been renovated and upgraded, strategic emerging industries have gained strength, and production-oriented services have been expanded fast.
Second, improved technological structure. China strives to build up a technological innovation system that is led by enterprises and market-oriented. It supports businesses to adopt new techniques, processes, equipment and materials, change, renovate and upgrade existing facilities and processes, and guide various factors of production to flow into key industries and products.
Third, better organizational structure. Since 2003, the Chinese government has issued four integrated policy documents, including the Law Promoting SMEs and Opinions on Supporting the Healthy Development of Small and Micro-Businesses. It has put in place a host of fiscal and tax incentives and promoted the development of small and medium-sized financial institutions and credit guarantee agencies for SMEs, to alleviate their financing pressure.
Forth, more reasonable geographical distribution. The Chinese government has provided guidance to the orderly transfer of industries. It has strengthened industrial support to regions inhabited by ethnic minorities in Western China and accelerated the relocation of industries from the eastern coastal areas to the Central and Western China. During the 11th five-year plan （2006 -2010） period, the share of central and western regions in the industrial value-added of the national economy, rose by 5.8 points of the percentage.
Fifth, improved market structure. In 2011, the share of manufactured goods in China’s total merchandise export rose to 95% from 90% in 2001. The export of mechanical and electronic products and hi-tech products accounted for 57% and 29% respectively out of the total export.
Industrial restructuring as a whole creates new jobs. By the end of 2011, 225 million people had been employed in the industry-dominated secondary sector, which accounted for almost 30% of the entire work force and had kept growing for ten consecutive years. In the process of industrial development, we have also noticed certain slowdown in growth as a result of phasing out backward production capacity, readjusting structure and changing the development pattern. However, we are convinced that only by improving economic structure and the quality and efficiency of development, can the Chinese economy become more internationally competitive and more resilient to risks and maintain steady and sustainable growth in the long-run.
Ladies and Gentlemen,
Now I would like to talk about the FDI’s conducive role in industrial development of China
The experience of more than 30 years’ reform and opening-up has proved that FDI could uplift the level of manufacturing industry, enhance the export competitiveness and promote industrial development of china.
First, technology brought by FDI is conducive to development of hi-tech industry in China.
Second, competition brought by FDI, forces the domestic enterprises to improve management and innovation capability, enforce transformation and upgrading.
Third, FDI could lead to industry aggregation and enhancement of the global competitiveness of the Chinese enterprises.
Forth, foreign-funded enterprises are conducive to introduce high level managerial human resources.
Fifth, TNCs’ transfers of R&D Centers to China enhance R&D level of China, and help the enforcement of our national innovative strategy.
Ladies and gentlemen,
China is the strong supporter of the south-south cooperation. The Chinese government has always appreciated the role of UNIDO in helping sustainable industrial development of the developing countries, and actively participated in the activities organized by UNIDO. We sincerely wish UNIDO could play a bigger role in the era of sustainable development and a new trial of industrialization. In our view, resource efficiency, sustainable sources of energy, poverty reduction through productive activities, trade capacity-building, industrial and technological innovation, as well as issues of social inclusion such as youth employment and economic empowerment of women, are the main areas where UNIDO has its strong comparative advantages.
In recent years, China and UNIDO has jointly carried out lots of south-south cooperation on capacity-building for the developing countries. Through the workshops jointly organized by both sides, nearly 300 industrial officials and technicians from other developing countries have been trained on the knowledge about solar energy, resource efficiency, and sustainable sources of energy and investment promotion. We are willing to strengthen our cooperation with UNIDO in the above-mentioned area, and share with other developing countries the experience and lessons in our process of industrialization.
Dear colleagues,
To conclude, I would like to highlight the role that UNIDO could play in facilitating BRICS cooperation.
Through the last few decades, UNIDO has established various centers such as ITCs, ITPOs, NCPCs and SPXs in BRICS. We sincerely hope UNIDO could make full use of all these centers and turn them into a comprehensive cross-sector platform for promoting industrial development. We should encourage and support enterprises, especially SMEs from BRICS to strengthen technical exchange and cooperation through this platform, and expand their investment and technology transfer to other developing countries as needed, so as to promote their industrial development to create more jobs and to reduce poverty more dramatically.
Thank you for your attention.
