The modernization of the industrial system represents the foundational material and technological basis for a modern nation, serving as a crucial vehicle for developing new quality productivityTraditional industries play an essential role in the national economy and the construction of a modern industrial systemWhile fostering strategic emerging and future industries, it is vital not to overlook or abandon traditional sectorsAs technological advancements and market demands evolve, it becomes imperative to revamp and uplift traditional industries using new technologies, thereby enhancing their levels of sophistication, intelligence, and sustainability, and breathing new life into these sectors.

Key strategies to accelerate the development of new quality productivity

When considering a country's economic development, industry serves as a critical entry pointIndustries consist of a collection of enterprises with shared characteristics and act as a bridge that connects the national economy with business operations

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A national economy comprises various industries that exhibit synergies among one anotherIndustries can be categorized based on different criteria into diverse types; they can be classified into traditional and emerging sectors according to their variations in demand, supply, and performance.

Traditional industries refer to those sectors characterized by relatively stable market growth, technological innovation, and profitabilityTraditional and emerging industries are symbiotic and convertible; traditional industries can morph into emerging ones after transformation while emerging sectors may, over time, transition into traditional categories.

In contrast to emerging industries, traditional sectors exhibit three primary characteristics: firstly, the market demand for their products tends to be more stable, with lower income and price elasticity, primarily catering to the basic needs as described by Maslow's hierarchy of needs; secondly, their production relies heavily on tangible factors such as land, labor, and capital, showcasing insufficient application of technological innovations and experiencing slow improvements in efficiency; and thirdly, they often occupy a competitive middle segment within the "smile curve" of the industry chain, generally enjoying lower product added value, resulting in average profits for enterprises rather than excess profits.

In China, traditional industries encompass not only agriculture and fishing but also numerous subsectors within secondary and tertiary industries

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Following the reform and opening-up period, traditional industries have rapidly expanded in scale, with production capacities and global competitiveness consistently enhancingBetween 1978 and the first quarter of 2023, the gross value added of primary industries soared from 101.85 billion yuan to 8.9755 trillion yuan, while total grain output increased from 30.4765 million tons to 69.541 million tonsChina's economic integration into the global framework has been profound, particularly within manufacturing, notably labor-intensive sectors like garments, toys, and home appliances, propelling the country into one of the world's manufacturing hubsFurthermore, certain regions in China have strategically focused on developing economies centered around traditional industries, fostering spatial industrial clustering with significant geographical identification, seen in clusters such as the small commodity manufacturing and trading hub in Yiwu, Zhejiang, and the home and equipment manufacturing cluster in Foshan, Guangdong.

Expediting the development of new quality productivity and solidly advancing high-quality growth are pressing contemporary challenges

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Emphasizing the transformation and upgrading of traditional industries forms a core aspect of building a modern industrial system and is a pivotal step toward accelerating new productivity development.

Transforming traditional industries to upgrade requires substantial focus on the application of new technologiesThe advent of the digital economy brings new opportunities to reshape the industries driven by technologies such as big data and artificial intelligence, offering crucial chances to renovate and enhance traditional industriesThese innovations facilitate significant advancements in the products, elements, processes, organization, and market-engagement of traditional sectors, exemplifying the "creative destruction" effect within Schumpeter's innovation theory, thus reshaping their relative disadvantages in terms of demand, supply, and performanceFor instance, in agriculture, the integration of new technologies has birthed types like smart agriculture, ecological farming, and branded agriculture, significantly elevating the precision of production and diversification of products

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In traditional manufacturing fields, enterprises that lead in adopting informational and intelligent technologies often succeed in creating new combinations of production factors, enhancing the carbon reduction and greening of production processes, moving adeptly from low-value-added segments to high-value-added areasEmpirical evidence suggests that a shift toward digitalization and green development generally boosts overall productivity.

China continues to leverage new technologies to transform and uplift traditional sectors, increasingly enhancing the integration of traditional industries with othersVarious industries, and within specific sectors, the circumstances of different enterprises can vary significantly; industries or enterprises that are sensitive to shifts in market demands and resource availability typically front the adoption of technological innovations, demonstrating exemplary models.

From the perspective of new production relations driving the advancement of new productivity, it is essential to facilitate a better combination of effective markets and proactive government interventions.

On one hand, there is a need to further optimize the business environment, deepen the market-oriented reform of elements, and expedite the construction of a unified national market to fully leverage the market's decisive role in resource allocation

This initiative can ignite vitality in various enterprises within traditional industries in the application of technologies and innovation, cementing firms' stable expectations for continual investment and future development, thereby bestowing greater autonomy for exploration across various dimensions.

On the other hand, it is crucial to utilize the advantages of China's new type of national system and its colossal market scale, relying on collaborative breakthroughs to resolve critical technological bottlenecksThis approach should focus on unblocking integration points among industry, academia, and research, enhancing investments in human capital in education and health, and expediting equitable basic public service provision, thus offering robust support for the transformation of traditional industries by better harnessing governmental roles.

Driving innovation to propel high-end transformation and upgrading

Traditional industries constitute a vital component of the national economy; their high-end transition is significant for meeting the needs of upgraded consumption, constructing a modern industrial framework, and promoting sustained economic growth.

Firstly, enhancing industry competitiveness is essential for ensuring stable economic growth

Historically, China’s industries have leveraged low-cost advantages, but as economic levels rise, production factor prices are on an upward trend, and cost advantages are diminishing, leading some labor-intensive sectors to relocate to economies with lower production costsUpgrading traditional industries to higher-end solutions can mitigate the impact of rising costs, thereby maintaining competitiveness in international markets.

Secondly, adapting to consumption upgrades strengthens intrinsic economic growth momentumWith increasing income levels, consumer preferences in China are transitioning toward personalized and diversified consumption, gravitating more towards health, safety, sustainability, and technology-driven experiencesHigh-end transformations in traditional sectors can stabilize conventional market demands while expanding into new consumption avenues, optimally enhancing internal demand to fuel economic growth.

Thirdly, fostering new quality productivity and cultivating new propulsion for economic progression are vital

High-quality economic development necessitates nurturing and fortifying new productivityAlthough this new productivity primarily emerges from original and disruptive technological innovations, often manifested through strategic emerging and future industries, traditional industries still play an irreplaceable roleOn one side, traditional sectors can transform into new productivity through the adoption of new technologies; conversely, they provide essential support, such as raw materials, components, and productivity services needed for future and strategic emerging industries.

The essence of high-end transformation in traditional industries lies in upgrading toward higher total factor productivity, added value, and profit margins, incorporating more environmentally friendly, human-centric featuresOver recent years, traditional sectors have achieved high-end upgrades primarily through several avenues.

Product innovation has been a leading approach

By developing new products, redesigning product structures, and enhancing process designs, companies can offer products or services with updated functions, improved performance, and better quality to meet upgrading consumer demandsIn the fashion industry, for example, Hanfu has emerged as a contemporary trend; in the home appliance sector, smart locks and devices, including robotic cleaners and washing machines, have become new consumer hotspots, enhancing convenience in consumers' lives.

Process innovation has also been prominentThrough optimizing production processes, adjusting equipment and parameters, notable enhancements in product performance can emerge, solidifying an essential backbone for the development of emerging industriesThe textile sector, for instance, has adjusted raw material formulations, improving processes to produce novel materials with anti-wrinkle, thermal insulation, waterproof, and breathable functions; within the steel industry, innovations have continuously increased the proportion of steel for automobiles and ships; and the chemical sector enhances the physical and chemical performance of products, providing superior new materials and chemicals for strategic emerging industries.

Business model innovations have allowed manufacturing firms to adapt to user demands, transitioning from one-time product sales to continuous value-added service offerings

The shifts in manufacturing service models have revealed substantial gains compared to one-off product transactionsFor example, fertilizer producers have transitioned from simply selling fertilizers to offering soil testing and customized fertilization services to farms.

Lastly, upgrading supply chains can transition processes from low value-added links to higher value-added segments within the same industryProcessing and assembly phases within sectors such as clothing and electronics usually yield lower added value, while upstream raw material and component processing stages yield higher valuesThus, upgrading entails moving towards those upstream segments in electronics or fabric manufacturing and dyeing in apparel, promoting value increase across the supply chainAdditionally, elevating value from components to complete machinery encompasses shifts from parts manufacturing to whole machine production in desired industries.

Brand upgrades are equally vital; traditional sectors enhance product quality while simultaneously expanding brand influence, establishing higher-end brand identities, and bolstering customer loyalty to lift international recognition

In dynamic fields like consumer electronics, new energy vehicles, and industrial equipment, Chinese brands increasingly gain domestic and international acclaimFurther, some clothing enterprises have augmented their global presence through acquisitions of international brands, fostering unique local styles.

It is essential to note that the high-end transitions of traditional sectors should rely upon and enhance intrinsic strengths, including accumulated industry knowledge and robust supporting systems developed over timeThese foundations form the bedrock of a traditional industry's high-end upgradeConcurrently, seizing the latest technological innovations is crucial, fostering digital technology applications to facilitate the comprehensive digitalization and intelligence of traditional sectors, and synergizing with innovations in alternative energy and green technologies to forge collective momentum that propels traditional industries towards higher-end prospects.

Intelligent technologies are reshaping industrial structure

As a new wave of technological revolution and industrial transformation rapidly advances, intelligent technology continues to break through and evolve, increasingly aligning with manufacturing processes

This synergy gives rise to more innovative technologies and applications, forming an intelligent-driven manufacturing process characterized by storage, computing, and logical reasoning, thereby reshaping traditional industrial structures and hastening the optimization and upgrading of traditional sectors.

First, using algorithms to control and optimize production processes is pivotalEnterprise operations encompass various crafts, equipment, and raw materials, where intelligent technologies can harness data through learning and optimization algorithms to real-time access and process manufacturing data, make intelligent decisions on device parameters, and achieve automation in production while optimizing the entire traditional manufacturing process, thus enhancing operational efficiency and productivity.

An exemplar is Jinpan Technology, which has established a high-end digital factory for dry transformers, optimizing decision-making, R&D models, modes of operation, and production workflows through algorithm control and process enhancement, significantly elevating operational efficiency, production quality, and market approval.

Secondly, enhancing the intelligence of maintenance and quality inspection through software has become paramount

Equipment maintenance and product quality checks play critical roles in traditional manufacturing, and enterprises can leverage systems to monitor equipment in real-time, anticipate faults, and automate maintenance measures effectively, thereby significantly enhancing the intelligence levels of equipment upkeep in manufacturing.

For instance, the GNN Energy Group’s Ledong Power Plant project has achieved comprehensive 5G coverage, leveraging advantages of low latency and mobility to deploy intelligent security monitoring and equipment inspection throughout the facility, thus minimizing inspection costs and enhancing inspection efficiency in high-noise environmentsSimilarly, Nantong Xingchen Synthetic Materials Co., Ltdaimed at standardizing management for real-time monitoring systems, fostered an industrial internet platform that boosted liquid leak detection rates by 90% and reduced violations by 85% among various other goals.

Moreover, intelligent inspection and classification of products on production lines through software enhances product quality controls, improves sorting efficiency, and reduces defect rates, contributing significantly to advancing quality inspection in traditional sectors.

Kingdee Software utilizes an integrated solution comprising Kingdee Cloud, product lifecycle management, enterprise resource planning, and manufacturing execution systems to assist the automotive manufacturing sector in its digital transformation by resolving customer order conversion challenges, ensuring timely delivery, and achieving complete traceability of product quality, culminating in notable improvements.

Thirdly, the integration of the internet in managing the entire lifecycle of products is key

The internet harmonizes equipment intelligence with human intellect, amalgamating artificial intelligence, the Internet of Things, big data, and other new-generation technologies with manufacturing processesThis convergence promotes data aggregation for production capacities and techniques, streamlining the overall manufacturing process of all product componentsWithin this context, each element can synergistically form optimal systems that enhance the automation, intelligence, and digitization levels of traditional manufacturing.

China National Chemical Corporation has implemented a 5G smart factory to achieve real-time safety and environmental monitoring, coordinated upstream and downstream management in the supply chain, equipment health warnings, automated production processes, and integrated emergency management, resulting in improvements at various milestones.

In summary, promoting the deep integration of intelligent technologies with manufacturing, establishing digital factories, facilitating industrial enterprises' digital presence, applying industrial internet platforms, implementing 5G solutions, and advancing intelligent applications in production scenarios are effective pathways to facilitate the transformation and upgrade of traditional industries while creating new fields and opportunities within these sectors, ultimately cultivating new productivity advantages.

Transforming toward energy efficiency and carbon reduction signifies green initiatives

Over the past 40 years of reform and opening up, traditional sectors such as agriculture, manufacturing, and construction have played crucial roles in propelling rapid national economic growth

Nevertheless, these industries typically exhibit lower energy utilization efficiencies, with data indicating that industrial energy consumption constitutes nearly 70% of national totalsKey energy-consuming industries include steel, cement, and chemicals, with the steel sector alone accounting for around 15% of national carbon emissions and the cement industry marking about 10% as wellFurthermore, the construction industry's high energy consumption during projects and the greenhouse gas emissions related to production processes for steel and cement similarly place pressure on ecological conservationTraditional sectors urgently require technological innovations to achieve energy conservation and carbon reduction while transitioning towards greener alternatives.

Currently, China has nurtured the establishment of 3,657 green factories, 270 green industrial parks, and 408 green supply chain enterprises, implementing nearly 30,000 green products

The average solid waste disposal utilization rates in green industrial parks exceed 95%, progressively fostering a comprehensive green manufacturing and product supply chain spanning from raw material to end consumer goodsBy 2022, substantial strides were made in the green transformation of key sectors like chemicals, machinery, electronics, home appliances, food, textiles, and large equipment, propelling the implementation of key projects via three rounds of recommendations urging advanced energy efficiency technologies and equipment overlaying next-generation solutions.

Traditional industries have actively engaged in energy conservation and carbon reduction across their entire lifecycle processesWithin the construction sector, the application of technology for cogeneration and regenerative energy feedback systems, along with green lighting designs and water recirculation systems, has yielded remarkable conservation results

In transportation, the proliferation of electric vehicles has markedly reduced reliance on fossil fuels as demand surges for clean energy automobiles; application of patents in emissions treatments explores the feasibility of carbon capture technologies for maritime vessels, curbing the carbon output consequent from rapid maritime developmentsIn steel, refining sintering processes and employing electric furnaces have led to lower energy consumption and carbon emissions while enhancing production efficiency and product qualityThe focus on carbon emissions centralized in the petrochemical sector prompts ongoing advancements in scale, carbon capture utilization, and storage technologies among othersMoreover, the digitalized and intelligent characteristics that define this technological revolution are pioneering innovations in ecological realms, particularly the socio-economic transformations ushered by big data and advanced artificial intelligence technologies, driving capital solution complexes to tackle intricate pollution challenges and promoting integrated environmental protections across urban-rural interfaces while facilitating simultaneous pollution reduction and decarbonization.

China's initiatives to drive large-scale equipment upgrades and product exchanges provide substantial opportunities for energy conservation and green transitions in traditional industries

Such upgrades catalyze the integration of intelligent and sustainable technologies, where artificial intelligence significantly enhances both energy efficiency and production efficacy, while also bolstering the scientific, systematic, and precise nature of decision-making, effectively aligning economic indicators alongside energy conservation goalsConcurrently, large-scale equipment renewal fosters harmonious growth along the entire supply chain, encompassing everything from raw material resource development and supply to manufacturing, product distribution, and recycling processesAdditionally, promoting product exchanges ignites market demands for energy-efficient, low-emission, and less-polluting products, consequently facilitating an overarching transition towards green utilities.

Currently, over 10% of production capacities in China’s steel, nonferrous metallurgy, petrochemical, and building materials sectors fall below benchmark performance; over 60% of existing equipment, including boilers, motors, and transformers, remain below advanced efficiency levels, with over one-third of current construction not aligning with energy-efficient building standards, pointing toward vast potential for upgrades in energy conservation and carbon reduction

Continuous improvements in management mechanisms for long-term energy-saving and carbon-cutting measures are crucial in establishing a robust atmosphere for corporate responsibility.

Conducting targeted actions in energy efficiency and carbon reduction surrounding features in sectors such as construction, steel, and cement, while concurrently pursuing synchronized energy-saving, emission-reducing, and pollution-cutting efforts through comprehensive approaches, amplifying standards in energy consumption, emission control, technology implementations, and managerial efficiency will be paramountEfforts that tie large-scale equipment upgrades, consumer product exchanges, productive investments, and urban renewal initiatives will drive energy-saving and carbon-cutting transitions in these key sectors.

It is vital to recognize that policy support, corporate technological innovation, refined market mechanisms, heightened public awareness regarding environmental conservation, and strengthened international collaborations act as critical cogs in driving innovation within energy-saving and carbon-cutting technological advancements and product iterations in traditional sectors