Emerging industries are the real economy that requires support

Editor's note: A forum on the Chinese economy, co-hosted by People's Daily, China Economic Weekly, China Academy of Information and Communications Technology, and Alliance of Industrial Internet of the Ministry of Industry and Information Technology, was held in Beijing on Dec 29. The following are excerpts of the speakers' points of view.

Yan Qingming, vice-chairman of the China Securities Regulatory Commission, said some people have not made clear what the real economy is while pledging support to it. The real economy should not include the real estate industry. What really needs support are the advanced manufacturing industries. He urged the authorities to clarify the meaning of the real economy. Otherwise, talking about the new industrial revolution is like building skyscrapers on sand, he said.

Fang Jiangshan, deputy editor-in-chief of People's Daily, said that the advanced manufacturing industries should be the pioneer in the supply-side structural reform, as well as the key to pursue high-quality development. He said innovation is the driver of industrial transformation and technological upgrading, as it can provide a strong driving force for quality growth.

Huang Qifan, former mayor of Chongqing, said the strategic emerging manufacturing industries are growing at 10 to 15 percent a year, related service industries are growing at 15 to 20 percent a year, and some digital industries, including big data, cloud computing, artificial intelligence and the internet are growing at more than 25 percent a year. This poses a sharp contrast with the traditional manufacturing and service industries as their average annual growth is only 2 to 3 percent. So it is not the economy that is weak, but some industries.

Li Yining, an economist with Peking University, said that it is the outdated development mode that hinders development. The old mode must be weeded out to give way to new technologies. As the economy is changing very fast, if China cannot embrace the new production mode, it will stand no chance in the competition with other countries.

Chen Hongwan, director of government finance department of the National Development and Reform Commission, said that the government has plenty of policy tools to ensure the aforementioned high-end equipment manufacturing industries and strategic merging industries enjoy the necessary financing support from the State and the market.