Real economy key to a modern industrial system

The central authorities recently reiterated the importance and urgency of building a modern industrial system supported by the real economy, stressing that governments at various levels must concentrate on the development of the real economy.

China's manufacturing industry is at risk of being "caught by the throat" in some cutting-edge technologies that are crucial to the new industrial revolution. At the same time, in the new historical environment, the government needs to address imbalanced growth. It should always regard scientific and technological innovation as the growth driver, and promote efficient resource integration and the restructuring of industries.

In this process, policymakers must properly handle the relationship between the real economy and the financial sector and the real estate industry.

China's industrial system should be able to withstand the challenges of external shocks, and adapt to the trends of the digital economy. The country should improve its ability to absorb international industrial and technological resources.

A modern industrial system needs to correctly handle the relationship between scientific and technological innovation and industry. The country should target leading industries and new technology tracks, develop high-end manufacturing with higher technological content, and strengthen strategic emerging industries.

At the same time, the country should speed up the digitalization, networking and intelligent upgrading of traditional manufacturing industries, and break through the obstacles restricting the deep integration of traditional and digital industries.

This requires encouraging entrepreneurship, improving the business environment, especially for scientific and technological innovation enterprises, and giving full play to the role of capital in promoting industrial development.

Some local governments have accumulated valuable experience in building a modern industrial system. Good top-level design and grassroots exploration should be closely integrated. By giving full play to the initiative of local governments, enterprises and research institutes, a modern industrial system with Chinese characteristics can be constructed.

To build a modernized industrial system, the country must adhere to the market-oriented reform direction, and properly handle the relationship between the government and the market. The government acts as a neutral referee in the market competition.

The construction of a modern industrial system is also a test of policy rationality. The way to enhance industrial stability and resilience should be the free circulation of economic factors and clear competition rules.

21ST CENTURY BUSINESS HERALD