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Press Conference on the 60-years’ Glorious Achievements in Industrial Development of Sichuan Province

  During the past 60 years after the founding of the People’s Republic of China, under the leadership of the CPC Central Committee, the State Council, the CPC Sichuan Provincial Committee and Sichuan Provincial Government, Sichuan industry went through foundation-laying in the Sino-Soviet friendship period, development in the “Third Front” Construction Period, adjustment since the adoption of the reform and opening-up policy and elevation at the turn of the century, and made great strides from being small and weak to being strong and powerful and from being known in the domestic market only to finding itself a place in the international market. So far Sichuan has established an industrial system of complete segments, well-arranged structures and clear hierarchies and is playing an important role in China’s industrial development. Especially since the Fourth Plenary Session of the Ninth Sichuan Provincial Committee of the CPC, all industries in Sichuan province have been taking Deng Xiaoping Theory and the important thought of “Three Represents” as guidance, thoroughly applying the Scientific Outlook on Development, focusing on “Two Accelerates” and “Invigorating the Province with Industry” as core strategies, adhering to the path of novel industrialization and making particular efforts on the transformation of industrial development pattern. As a result, Sichuan’s industries have maintained a sound momentum of fast, steady, healthy and sustainable development.   

  I. From only three industries to modern grand industries, Sichuan’s industries have made tremendous historic strides.

  During the early period of post-liberation, the gross output value of industry and agriculture in Sichuan including the present Chongqing Municipality was merely 4.3 billion yuan, to which industry contributed only 700 million yuan. There were hardly any industry except for some workshops of sugar, paper and salt. After the large-scale construction in the periods of the First Five-year Plan, the Second Five-year Plan and the “Third Front” Construction Period, Sichuan’s gross industrial output value and industrial value added increased to 15.77 billion yuan and 5.94 billion yuan respectively in 1978. Output of major products in the machinery industry, electronics industry, metallurgy industry, building materials industry and chemical industry took top places in the whole country, and industrial value added accounted for 3.7% of the country’s total in 1978, up from 2.2% in 1965. Then the policy of reform and opening-up pushed Sichuan’s industries into the phase of all-round development. It was the first province in China to launch ten pilot programs of enlarging enterprise’s self-managing rights and 23 pilot programs of modern enterprise system, inaugurating the beginning of enterprise reform in China. Through a series of reform measures such as factory director and manager responsibility, shareholding system reform and property rights system reform, a modern enterprise system of clearly established ownership, well defined powers and responsibilities, separation of enterprise from administration, and scientific management was basically established. From 1978 to 2000, Sichuan’s industrial value added increased with an annual average growth rate of 11.04%. The industrial value added of the whole province in 2000 reached 127.384 billion yuan, and the ratio of primary industry, secondary industry and tertiary industry was 23.5: 39.2: 36.8. In particular in recent years, Sichuan’s industry experienced robust development, keeping a double-digit growth for 9 consecutive years. In 2008, the ratio of primary industry, secondary industry and tertiary industry was adjusted to 18.9: 46.3: 34.8, industrial value added of industries above designated scale amounted to 493.93 billion yuan and industry accounted for 39.36% of the province’s GDP. Industry’s contribution to economic growth has risen to 53.5%. In a word, industry has turned into the main force for economic and social development of the province.

  “Invigorating the Province with Industry” was defined as the leading core strategy for the whole province. Since 1999, the province has seized the strategic opportunity of the western development drive, speeded up strategic adjustment of industrial structure, and adopted three solutions, namely merger and bankruptcy, technological reform and debts-for-shares. Sichuan’s industrial economy had leap-forward development as a result. In 2004, Sichuan accelerated its pace on the path of novel industrialization and focused its efforts on the development of four competitive industries, namely electronics and information, equipment manufacturing, competitive resources and agricultural product processing. In March 2006, the goals and tasks for industrial development were proposed in the work conference for invigorating the province with industry. In 2007, the Ninth Party Congress of Sichuan Province put forth a strategic arrangement for the province’s evolvement from a major province of industry into a top province of industry. Especially after the Fourth Plenary Session of the Ninth Sichuan Provincial Committee of the CPC, Sichuan proposed and effected the overall principle of quickened, scientific, sound and rapid development, and adhered to the guideline of taking “invigorating the province with industry” as the core strategy, promoting novel industrialization, novel urbanization and agricultural modernization and strengthening opening-up and cooperation, strengthening technological education and strengthening infrastructure construction, so as to develop Sichuan into a prominent region for economic development in the western region supported by “one hub, three centers and four bases” (one western comprehensive transportation hub, three regional centers for logistics, commerce and finance, and four bases for strategic resource development, modern processing and manufacturing industry, industrialization of scientific innovation and intensive processing of agricultural products). As such, “Invigorating the Province with Industry” was fixed as the leading core strategy for the whole province.

  II. Industrial structure being optimized constantly, a modern industrial system supported by “7+3” industries is formed.

  In line with the requirements of the Scientific Outlook on Development and novel industrialization, Sichuan province has been reinforcing efforts on industrial structure adjustment and industrial development pattern has been transformed.

  Industrial structure was upgraded. The construction and development during the periods of the First Five-year Plan, the Second Five-year Plan and the “Third Front” Construction Period helped Sichuan form a relatively complete industrial system. Up to 1978, the province boasted an equipment manufacturing industry dominated by aviation equipment manufacturing, electronic equipment manufacturing, machines manufacturing and power-generating equipment manufacturing, a metallurgy industry dominated by steel and non-ferrous metal metallurgy, a chemical industry dominated by salt chemistry and natural gas chemistry and an energy industry dominated by coal production and power generation. After the adoption of the reform and opening-up policy, centering the primary task of industrial structure adjustment, Sichuan province pushed forward the optimization and upgrading of industrial structure and shifted its efforts from the five polar industries emphasizing quantity to the four competitive industries with emphasis on quality, and further to the “7+3” industries that are more consistent with Sichuan’s advantages. The size of light industries and the size of heavy industries are more in proportion to each other, with ever-increasing development level. Sichuan has led the country in the manufacturing of complete sets of equipment for nuclear power generation of millions of kilowatts, making considerable contribution for China’s nuclear power industry. In 2008, the “7+3” industries in the whole province realized value added of 376.1 billion yuan, representing 74% of the total of industries above designated scale. This has proved to be a powerful support for Sichuan’s industrial economy. The leading role of high technology industries was reinforced with quickened industrialization process. There emerged 6 competitive fields, namely advanced manufacturing represented by electronics, information, and important equipment, bioengineering, aerospace and aviation, new material, nuclear technology, and renewable energy, 9 strategic products and 80 key projects. Moreover, construction of hi-tech industrial zones (or bases) was progressing smoothly. Hi-tech industries demonstrated increasing driving force on economy and society. In 2008, hi-tech industries in the whole province realized value added of 83.58 billion yuan, up 24.9%. At present, in light of the new trends and new changes in global industrial development, the province has proposed work arrangements dedicated to developing emerging industries such as new materials, renewable energy, electronics and information, biopharmacy, energy-saving and environmental protection, and indicated the direction for elevating industrial level, transforming development pattern, amassing development force and strengthening Sichuan’s industrial competitiveness.

  Enterprise organizational structure tends to be more reasonable. Since the adoption of the reform and opening-up policy, Sichuan has been leading the country in enterprise reform and urban economic system reform. Ningjiang Machine Tool Works took the lead in exploring the possibility of marketization. Yibin city initiated the “Yibin Experience” for small and medium enterprise (SME) reform that won nation-wide reputation. The Hope Group pioneered a new development path for private economy. And Leshan city was among the first in the country to start shareholding reform of state-owned enterprises and get these enterprises listed for trading. Meanwhile the expansion of 37 enterprises ushered in the climax of marketization of industrial enterprises in the province. In this respect, large enterprises and large groups had increasing influence on other enterprises. In accordance with the requirement of the CPC Sichuan Provincial Committee and Sichuan Provincial Government that we must help enterprises grow stronger in order to develop industry, particular efforts were made to foster the growth of a great number of large-scale enterprises and groups such as Panzhihua Iron & Steel (Group) Co., Dongfang Electric Corporation, Changhong, Wuliangye Group, Chengdu Aircraft Industry Group, Sichuan Chemical Industry Holding (Group) Co., Ltd. and so forth. In 2008, Sichuan had 1,545 industrial enterprises whose revenue from main businesses exceeded 100 million yuan, 250 more than that of 2007. Twelve of them had gross output value of 5 billion to 10 billion yuan and 13 of them had gross output value of over 10 billion yuan. Total revenue from main businesses of 78 large enterprises and groups accounted for about half of that of enterprises above designated scale and industrial value added of these enterprises approximated one third of that of enterprises above designated scale. SMEs expanded rapidly. In 2007, the number of SMEs above designated scale hit 10 thousand, reporting over 50% of the whole province’s value added. In 2008, private economy contributed to 52.1% of the whole province’s GDP. The New Hope Group, Sichuan Hongda Co., Ltd, Sichuan Lomon Corporation, Sihai Group and Kelun Pharmaceuticals are representatives of key private enterprises and groups, which have made significant contribution to Sichuan’s economic and social development.

  Technical structures were elevated significantly. Sichuan province insisted on taking technical innovation as the central phase in industrial structure adjustment, based itself on elevation of local independent innovation ability, and laid particular stress on increasing investment for technical transformation and innovation, so that the technical quality and value added of industries and products has been improved remarkably and industries boast forceful sustained development. Investment in technical transformation has been growing rapidly. After the adoption of reform and opening-up policy, technical transformation has been regarded as one crucial means of industrial development. As one of the six pilot enterprises in China for technical innovation, Changhong took the lead in evolving into a state-level enterprise technical center and post-doctoral research center, turning a new page of progress from “Made in China” to “Created in China”. In 2008, investment in technical transformation in the whole province reached 167.6 billion yuan, 22.1% of fixed asset investment in all sectors, contributed to 27.1% of Sichuan’s GDP growth and 2.6 percentage points in the province’s economic growth, and contributed to 44.1% of Sichuan’s industrial growth and 6.7 percentage points in the province’s industrial development. Enterprises’ independent innovation capability has risen remarkably. Sichuan province pioneered the promulgation of local regulations that reinforce the back-up system for enterprises’ independent innovations, one example for which was the Regulations of Sichuan Province for Enterprise Technical Innovations. In 2008, 22 enterprises in Sichuan had state-level enterprise technical centers, 11 enterprises had state-level engineering technical centers, 191 enterprises had province-level enterprise technical centers and 63 enterprises had province-level engineering technical centers. About 20% of the province’s large and medium enterprises had technical centers. The quantity of patent applications and approvals has been rising year by year, and in 2008 alone, the former totaled 6,947 and the latter totaled 3,738. Twenty-five Industry-University-Research Institute alliances were certified and 163 innovative enterprises were newly established. Output value of new products has increased rapidly. The proportion of hi-tech products, high-value-added products and products manufactured by large complete sets of equipment has been on the rise, and output value of new products keeps increasing quickly. In 2008, output value of new products of the whole province amounted to 279.82 billion yuan, 5.5 times more than that in 2002. 

  Industrial layout and structure turned to be more scientific. In the late 1990’s, Sichuan province launched an industrial layout adjustment characterized by “bases plus industrial chains” and at the beginning of the 21st century started the “1+8” project in the major equipment industry. The province has been making particular efforts to realize a centralized, clustering and intensive layout of competitive industries, promote industrial zones by means of industrial chains, constitute industrial clusters with industrial zones and spur the evolvement of industrial strips through industrial clusters. As a result, 8 industrial strips have come into being, namely Chengdu-Mianyang-Leshan electronics and information industrial strip, Chengdu-Deyang-Ziyang-Zigong-Yibin equipment manufacturing industrial strip, Chengdu-Deyang-Mianyang-Nanchong-Ziyang auto industrial strip, Panxi Region vanadium, titanium and rare earth industrial strip, Chengdu-Leshan-Mianyang silicon industrial strip, South Sichuan chemical industrial strip, Northeast Sichuan natural gas chemical industrial strip and Chengdu-Suining-Nanchong-Dazhou garment and footwear industrial strip. Sichuan still has to boost the development of these 8 industrial strips. Industrial clusters have proved to be an important platform for the centralized, clustering and intensive development of competitive industries. In 2008, various industrial clusters in Sichuan totaled more than 140, and characterized industrial clusters develop quickly, like major equipment manufacturing industry in Deyang, digital household appliances industry in Mianyang, vanadium and titanium industry in Panzhihua, auto industry in Chengdu, auto sales in Ziyang, natural gas chemical industry in Dazhou, leather shoes manufacturing in Wuhou, ceramics industry in Jiajiang, food industry in Suining, aluminum and silicon industry in Chengdu-Leshan, white wine industry in South Sichuan, silk garment industry in Nanchong, and furniture industry in Chengdu.

  Industrial structures were more competitive. Sichuan province initiated and executed the strategy of industrial brand-building and has made fruitful achievements in this regard. After liberation, the province started to lay particular stress on product quality management, inaugurating the cause of brand-building. Since the adoption of reform and opening-up policy, Sichuan introduced a series of policies and measures pushing forward the strategy of industrial brand-building and reinforcing the efforts on brand-building. Especially since 2007, the province put into effect the Opinions on Implementing the Strategy of Industrial Brand-building in Sichuan Province. As of August 2009, Sichuan had 173 state-level brand name products. Among them, 3 products were granted the title of “Chinese Export Famous Brand”, 125 products were granted the title of “Chinese Well-known Mark” and 45 products were granted the title of “China Top Brand”. And there were 1220 province-level top brands. Among the top brands in Sichuan are J-7, J-10, FC-1, Wuliangye, Changhong, Jiuzhou, Maipu, COASTER, Jiannanchun, Luzhou Laojiao, Langjiu, Tuopai, Quanxing, Meihao, Di’ao, Jiaozi, Hope, Tongwei and so forth, covering 28 industries such as pharmacy, chemical industry, machine-manufacturing, metallurgy, food and beverage, transportation and telecommunications. More than 65% of enterprises in competitive industries were brand name enterprises. Among the 70 major industrial products of key national tracing, the output of 9 products in Sichuan accounted for over 5% of their respective national total. Competitive products such as digital household appliances, complete sets of large power-generating equipment, hydropower, synthetic ammonia, quality steel and iron, quality white wine, third-generation military aircrafts had top three market shares in China. Output of power-generating equipment was the largest in the world, white wine sales took up one third of the country’s total, output in nuclear industry, military aircrafts and crude ethanol took up 50% of the domestic market share, and electro-mechanical products and hi-tech products were leading export products. According to statistics, the economic aggregate of brand name enterprises represented 39.9% of that of industrial enterprises above designated scale in the province and brand name products contributed to 27% of the industrial value added in the province.  

  III. Industrial zones: an important connecting point and breakthrough point for the interactive development of industrialization, urbanization and agricultural modernization

  Sichuan province insisted on the principle of interactive development of novel industrialization, novel urbanization and agricultural modernization, in lien with the requirement of five-dimensional development, namely correlated development, industrial-chain-based development, clustering development, intensive development and cooperative development of competitive industries, and took the construction of industrial zones as the important connection point for interaction of novel industrialization, novel urbanization and agricultural modernization and major carrier for the take-over of industrial shifts. Additionally, Sichuan province worked out the Guiding Opinions for Development Planning of Industrial Zones in Sichuan Province, arranged industrial layout adjustment based on the idea of “one industrial zone must have one owner and industrial zones must have their own characteristics”, and took advantage of industrial zones (industrial clusters) to optimize industrial layout, boost competitive industries, foster key enterprises and develop industrial clusters. As a result, industrial zones have become a new growth pole for industrial economy. At present, Sichuan has 43 development zones approved and established by the state. 2 state-level hi-tech industrial development zones were approved by the Ministry of Science and Technology, 1 economic and technological development zones were approved by the Ministry of Commerce, 2 export processing zones were approved by the General Administration of Customs and 38 province-level development zones were approved by the NDRC. Besides, the province has 148 industrial zones (industrial clusters) of various kinds for the purpose of industrial centralized layout and metropolitan function segmentation. Considering post-quake reconstruction and seeking to make adjustment to industrial clusters and optimize the layout, the province plans to appropriate 3 billion yuan to build industrial clusters for circular economy, industrial zones for enclave economy and industrial zones for matched cooperation.

  46.103 billion yuan investment in infrastructure of industrial zones in the province was executed in 2008, up 53.5% compared with 2007, and such investment experienced rapid and steady growth from 2006 to 2008, with an annual average growth rate of 60.2%. Industrial value added of industrial zones in the province accounted for 46.3% of the province’s total industrial value added and contributed to 51.5% of the growth of industries above designated scale. Resident enterprises in industrial zones in the province totaled 15,034, among which 4,831 were industrial enterprises above designated scale, 40.4% of the total industrial enterprises above designated scale in the province. These resident enterprises in industrial zones realized industrial value added of 228.5 billion yuan, up 44.1%. Statistics show that employees in industrial zones (industrial clusters) in the province reached 2.267 million in 2008, among which 1.223 million were employees of industrial enterprises, 161 thousand more than that in 2007.

  More efforts were made to promote the “1525 project”. The province formulated the Administrative Measures on the Certification of Growing Distinctive Industrial Zones in the 1525 Project to regulate administration procedures in the certification of industrial zones, and determined 50 key industrial zones to be fostered. Among them, there were two 100-billion-yuan industrial zones, seven 50-billion-yuan industrial zones, and forty-one 10-billion-yuan-up industrial zones. Effective measures were taken to reinforce the orienting function of the 500-million-yuan industrial zone development fund, and increase investment in the building of infrastructure and five public service platforms. In 2009, 145 projects of public service platform construction for industrial zones triggered fixed asset investment of 14.08 billion yuan. 

  IV. Steady promotion of wider opening to the outside world and to the domestic market resulted in an all-round opening situation of “three orientations and four hierarchies”. 

  Sichuan province seized the emerging opportunities of multiregional cooperation, by stressing cooperation with the southern region, reinforcing cooperation with the eastern region and facilitating cooperation with the western region and by expanding regional cooperation, intensifying sub-regional cooperation, promoting pan-regional cooperation and participating in international regional cooperation. The whole province thus stepped up targeted and effective all-round opening and cooperation.

  The proportion of output value of foreign-funded enterprises increased constantly. Since the adoption of reform and opening-up policy, foreign-funded enterprises in Sichuan mainly invested in the processing and manufacturing sectors, which became an important growth point for Sichuan’s industry. In 1998, the gross output of foreign-invested enterprises reached 11.281 billion yuan, representing 2.95% of the total industrial output of the whole province. In recent years, Sichuan province grasped the opportunity of “westward flow of foreign investment and westward shift of domestic investment”, gave prominence to investment promotion for enterprises, industries and industrial zones, and attracted external capital to inject in competitive industries. As of 2008, the accumulated total of approved foreign-invested enterprises was 8,628, and 142 of the World Top 500 have established presence in Sichuan. The output value of foreign-invested enterprises increased to 94.284 billion yuan, nearly 9 times that of a decade ago, and accounted for 8.53% of the gross industrial output value of the province, up almost 6 percentage points.  

  Foreign trade grew continuously. The total volume of Sichuan’s foreign trade was only USD 1.79 billion in 1997 and the figure jumped to USD 22.04 billion in 2008, taking up the thirteenth place in China, with an annual average growth rate of 23.27%. In the new century, Sichuan stepped up construction of export product bases, fostered export enterprises and took effective actions to encourage enterprises to go global, explore the international market and increase the export of high-end products such as hi-tech products, electro-mechanical products and complete sets of equipment. And the export of electro-mechanical products and hi-tech products, whose proportion had experienced a drop a few years ago, demonstrated a rising tendency again since 2006.

  Under the concern, care and promotion by the media, Sichuan’s industry went through a glorious journey in these 60 years. On this occasion, we’d like to express our heartfelt gratitude for you all on behalf of all cadres and workers in the industrial circle of the province. In the future, we will further thoroughly apply the Scientific Outlook on Development, and in line with the requirement of novel industrialization with Chinese characteristics and based on the strategic arrangement of “Two Accelerates”, further emancipate our minds, explore new frontiers through innovation and meet challenges head on so as to realize Sichuan industry’s quickened, scientific, sound and rapid development and open up a new page in Sichuan’s industrial development.

  

 
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