“When the kinetic energy conversion is completed, it is the day of successful transformation and upgrading of Dongguan.” Lv Yesheng, secretary of the Dongguan Municipal Party Committee and director of the Standing Committee of the Municipal People’s Congress, said that through the “multiplication plan”, the low-end and order-based manufacturing industry will be transformed into smart manufacturing, making Dongguan truly Realize the transformation to independent technology, independent brands and market diversification and globalization. On February 27th, Hong Kong's "Economic Herald" published the "Multiplication Plan: The Secret of Kinetic Energy Conversion of the "World Factory"", introducing Dongguan's "multiplication plan".

Xiao Bian today reprinted this article to readers.



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Dongguan, known as the "world factory", has a foreign dependence of more than 400%, 220% in recent years, 160% last year, and more than 120 countries and regions with economic and trade exchanges - standing in the wave of internationalization A highly outward-oriented city. In 2016, Dongguan's GDP reached 682.767 billion yuan, an increase of 8.1% year-on-year; the city's total import and export volume reached 1141.6 billion yuan, an increase of 9.8% over the previous year. There is no doubt that Dongguan is a contributor and beneficiary of economic globalization.





however,

At present, the "anti-globalization" argument appears from time to time,

Trade protectionism is prosperous.

at this time,

How will this "world factory" respond?




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Beginning this year, Dongguan plans to select 50 companies in the four categories of private manufacturing enterprises, processing trade enterprises, listed or listed "new three board" enterprises, and high-growth high-tech enterprises. The policy is to urge these enterprises to achieve “multiplier” indicators such as income and assets during the “Thirteenth Five-Year Plan” period, as well as profit indicators such as profit and taxation, and to promote the multiplication of surface-venture enterprises and embark on an efficient and intensive development path. Dongguan called this program the “multiplier plan” for the scale and benefit of key enterprises. This is also the breakthrough way for the “world factory” in the “reverse globalization” situation.



Through the efforts of the next five years, Dongguan will achieve a GDP of trillions of yuan, strive to achieve a higher level of development at a higher starting point, and take the lead in basically achieving a new journey of socialist modernization.



Restricting the "six duals" of Dongguan's development





At present, the bottlenecks of land, resources and environment on Dongguan's economic development are becoming more and more prominent. Land development has approached the upper limit. According to the traditional extensive development model and path, there is almost no room for Dongguan to go up.

The data shows that by 2030, the total construction scale of Dongguan is 1190 square kilometers, and in 2015, the land use area of Dongguan has reached 1,140 square kilometers. In the case of the disappearance of the land element dividend, it has encountered domestic and international economic downturns, and large-scale investment to promote high-growth models is also difficult to sustain. Dongguan must achieve the goal of GDP of one trillion yuan, relying only on innovation-driven and intensive development. And improve the road to added value.







From July to September last year, Dongguan launched a large-scale survey on building a new open economy system. Afterwards, Lv Yesheng used the "six duals" to explain the challenges faced by Dongguan: first, the "double squeeze" of high-end manufacturing reflow and low-end market diversion, and second, the "double dilemma" of weakening regional advantages and increasing urban competition. Third, development The “double constraint” of high intensity and ecological load is too heavy. The fourth is the “double risk” of the “troika” deceleration and kinetic energy conversion. The fifth is the “double challenge” to resolve social contradictions and eliminate potential safety hazards. Deep transformation and forging the "double test" of the first-class team.

As a world-famous “Made in China” indicator city, since 2007, Dongguan manufacturing has become more sensitive to changes in supply and demand in the international market. Since then, Dongguan has embarked on the road of transformation and upgrading. Take Taiwan-funded enterprises as an example. In the past five years, the investment quota of Taiwan-funded enterprises in Dongguan has been affected by external migration or closure of US$980 million, while the investment of Taiwanese enterprises transferred to Dongguan during the same period was US$3.83 billion. .







"This one-in-one, objectively, is a round of industrial upgrading, and we seized the opportunity!" Lu Yesheng said that the traditional industry in Dongguan has changed ten years, freeing up a large amount of land, factory buildings, capital and high-quality workers, which has contributed to The landing of many high-quality enterprises in Shenzhen and Guangzhou has enabled Dongguan to gradually get rid of the dependence on low land prices and low wages, and gain support from technological innovation. The data shows that compared with 2011, the added value of Dongguan's advanced manufacturing and high-tech manufacturing industries accounted for 48.5% and 38% of the added value of industrial enterprises above designated size, up 6.6 and 9.3 percentage points respectively.









"This growth is mainly concentrated in the electronic information industry chain. The systemic characteristics of modern industry are still insufficient." Lu Yesheng said that the Internet and related service industries, software and information technology services are growing fast, but enterprises in these industries The proportion of quantity and output value is not large. Dongguan still lacks representative large-scale industry backbone enterprises to support it, and still has not exceeded the “middle income trap”.

"The 'middle income trap' is not just a number, the economy is not transformed, the structure is not optimized, and it will fall over the past." Lu Yesheng said that last year, Dongguan's per capita GDP has exceeded 12,000 US dollars, close to the level of high-income countries or regions. But it does not mean that it has already passed the "trap".

For Dongguan, how to use the growth of new kinetic energy to make up for the gap formed by the shrinking of old kinetic energy, the pressure and challenges are still very large. In 2016, Premier Li Keqiang inspected Guangdong and put forward the eager anticipation of “making new kinetic energy gradually provoke the girders and the old kinetic energy will continue to revitalize”. “This is a question laid by the central leadership to Dongguan.”



Innovation drives Dongguan enterprises to become more global







“After answering the 'Dongguan Manufacturing' new and old kinetic energy conversion test, the leading role is very important.” Lv Yesheng said that Dongguan has undergone industrial transformation and upgrading in the past ten years, and has many leading enterprises such as Huawei and BBK, and has become the point of economic transformation. .



The mobile phone industry in Dongguan has become a radiation trend in the world. It is understood that the shipments of Huawei, OPPO and vivo mobile phones produced in Dongguan have all entered the top six in the world, ranking the top three in the country. In 2016, Dongguan’s smartphone shipments reached 255 million units, accounting for 1/5 of the world’s total revenue. Nearly 300 billion yuan, an increase of more than 40%, driving the growth of the value of industrial enterprises above designated size in Dongguan's electronic information manufacturing industry by about 20%.







At the same time, more and more Dongguan enterprises are beginning to integrate more into globalization.



During the annual meeting of the 2017 World Economic Forum in Davos, the CCTV news channel "Oriental Time and Space" broadcasted the news that "Made in China is quietly upgrading" on the evening of January 16. Dongguan Deli Watch Co., Ltd. has become a typical representative of the “Made in China” upgrade counterattack in the report. The company has achieved process design and high-quality production that is difficult for Swiss manufacturers to achieve, and even the local factory in Switzerland has become an assembly partner of the company.



At present, Dongguan Deli watches in Fenggang Town, Dongguan City, have more than 700 employees, and the annual export of high-end watches is 3.6 million. There are only 600,000 high-end watches in Switzerland. The company is supporting the supply chain management park. In 2012, it also added the Heyuan City Peace Branch Factory in Guangdong Province.



Dongguan Weimei Ceramics Co., Ltd., which produces Marco Polo ceramics, also has a good performance. On May 5 last year, Weimei Group announced that it would invest US$172 million to build a plant in Tennessee, USA. The project construction period is expected to be 4 years. The plan combines domestic and European and American advanced production equipment to establish four high-end fully automated production lines for ceramics manufacturing. The US Governor of Tennessee, Bill Haslam, came to Dongguan from the United States for a special trip, thanking the Weimei Group for its huge investment.







This is the first ceramic enterprise in China to invest in Europe and the United States. It is also the first private enterprise in Dongguan to invest and build a factory in the United States. The company is "going out" from the limited products or "partially going out" at the manufacturing end, to achieve a big step – to invest in the most competitive market. Its production base in the United States will develop into a purely American company that registers its own brand in the United States and operates high-end R&D.



Whether it is the introduction of the project or the outbuilding of Dongguan enterprises, it is inseparable from the birth and support of this land in Dongguan. Dongguan is also striving to create a better environment for the company to grow and develop.



While building the Songshan Lake National Independent Innovation Demonstration Zone, Dongguan will coordinate the construction of the University Innovation City and the Professional Town Collaborative Innovation Center, and combine the high-level upgrading of the Science and Engineering Department of Dongguan University of Technology to comprehensively enhance the regional innovation capability and “proforestation and afforestation” with high-tech enterprises. The policies promote each other, and the innovation main body cultivation project is implemented. The international industry radiation of large companies is carried out, and the size of the innovation industry is complementary. The innovation industry in Dongguan is transformed into a scientific and technological original ecological forest. This is the foundation of Dongguan's technology base.







In May 2012, Dongguan initiated the reform of the commercial registration system, the registration of the country's first innovative business enterprise cluster, and the registration management of “residential information declaration + negative list”. By March 2016, Dongguan launched the “Full-time Electronic Chemical Dealer Registration Management System” and set up an online approval center to open a new model of smart business. On this basis, Dongguan implemented the “one Netcom” reform of enterprise registration and implemented the “five-in-one”. As of January 8, 2017, the city has established 534 cluster registration and custody companies, and registered 12,477 cluster enterprises. A total of 239,300 enterprises and 24,500 individual industrial and commercial households (accounting for 72.77% of the city) have been reloaded to load the unified social credit code. business license. The data shows that in 2013, Dongguan produced 66 bosses every day, and in 2016, 135 bosses were born every day. This is an improvement in the business environment in Dongguan.





Dongguan started the battle for water pollution control, and strived to promote the construction of sewage interception pipe network to ensure the newly built 1800 km sewage interception pipe network before the end of 2018, and then add another 1000 km before the end of 2020, and follow the "one river and one policy" idea and "close The rhythm of “building one and planning one” is to comprehensively carry out pollution control and ecological restoration of inland rivers. This is an upgrade of the ecological environment in Dongguan.



Lv Yesheng said that the innovation drive is not only an industrial concept. The more essential consideration is to build a fair and reasonable governance model and to create a balanced and inclusive development model. Only in this way can we fundamentally improve the technical and human qualities of Dongguan and cross the middle income. trap".





Complete the kinetic energy conversion by "multiplication plan"


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Lv Yesheng said that Guangdong Provincial Party Committee Secretary Hu Chunhua urged Guangdong to take the lead in comprehensive transformation and accelerate the development of socialist modernization at the provincial economic work conference held at the end of December 2016. As a major economic city in the Pearl River Delta, Dongguan is deeply responsible.


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“Dongguan must have an internal system innovation.” Lv Yesheng said that this set of innovations is to mobilize the system and investor capacity to form an endogenous growth strategy.

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According to Lv Yesheng, the non-public economy in Dongguan accounts for about 85% of the city's GDP. The total industrial output value and total import and export volume of non-public enterprises account for more than 90% of the city's total. “It is Dongguan that achieves a higher level at a higher starting point. An important force for development."


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If the big business is referred to as “the moon” and the small and medium-sized enterprise is referred to as “the sky full of stars”, then the community elements and growing soil needed for the global enterprises to grow, from product distribution to the gathering of designers, suppliers and sellers. The supporting chain provided by Dongguan “Fengxing” for “Yueyue” and the linkage between supply and demand market have become an important support for the global growth of large enterprises.



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On the other hand, the global operation of large enterprises has also enabled Dongguan small and medium-sized supporting enterprises to gain valuable international experience, technology and supply and demand networks, and then localize these international business elements to promote the competitiveness of the entire business environment in Dongguan. Move closer to global standards.



In other words, the future of Dongguan's economy is to realize the transformation of “full of stars” to “Xingyue Qihui”. The question now is, to cultivate "Xingyue Qihui", what is the grasp?



Lv Yesheng said that the strength of land development in Dongguan has approached the limit. To move forward, it is necessary to follow the path of intensive development to maximize the benefits of land output. At the same time, Dongguan has a large number of “single champions” in the industry. "Enterprises, the cultivation of these stocks "single champion", only the implementation of accurate services, accurate support strategies.



"Specifically, it is to adopt an enterprise-to-strategy approach and advance precisely." Lv Yesheng said that the Dongguan Municipal Party Committee and Municipal Government launched a "multiplication plan" for the scale and efficiency of key enterprises, and focused on increasing the industrial interaction between "Stars" and "Yueyue". In the end, the double scale of the “13th Five-Year Plan” and the benefits of manufacturing in Dongguan will be realized.



Lv Yesheng introduced that the whole idea of the “multiplication plan” is to start from the supply side, according to the private manufacturing enterprises, foreign-invested enterprises, listed or already listed “new three board” enterprises, high-growth high-tech enterprises, each select 50 A total of about 200 companies have formulated action plans one by one and provided support from five aspects:



● First, the supply of innovative policy elements, including multiplying fiscal policy support, establishing demand-oriented support mechanisms, implementing service package incentives, and establishing online and offline service platforms.
● The second is the supply of innovative industrial factors, including the implementation of major science and technology projects, increased R&D investment, the creation of a smart manufacturing ecosystem, and the strengthening of “Internet+” elements.

● The third is to innovate the supply of land elements, including encouraging enterprises to “in situ”, establishing an intensive development land allocation mechanism, innovating land supply, supporting headquarters economic land, and resolving historical issues left over from land use.

● The fourth is the supply of innovative capital elements, including supporting mergers and acquisitions, establishing industrial mergers and acquisitions funds, encouraging multi-level capital markets, and reducing financing costs.

● The fifth is the supply of innovative talents, including the introduction of quality talents, the retention of key talents, and the protection of educational resources. After the pilot is mature, we will explore the experience and practices that can be replicated and promoted, and form a support policy for the whole city.



Lv Yesheng introduced that in 2016, Dongguan’s GDP will exceed 682.767 billion yuan. In the next five years, it will achieve the goal of one trillion yuan on the basis of economic transformation and structural optimization. “This is not blind pursuit of economic scale. It is Dongguan’s economic market and The responsibility of the 'World Factory' is also the goal of the 'multiplier plan'.



Lv Yesheng said that the "multiplication plan" as a catalyst for industrial transformation in Dongguan will greatly mobilize the enthusiasm and creativity of intensive development of enterprises, and urge Dongguan to embark on a new road of intensive development that is completely different from the driving of resource elements. Three times in the "13th Five-Year Plan" period:

First, the scale and efficiency of the pilot enterprises have doubled; the second is the multiplication of the scale and efficiency of the towns and towns (parks) led by the “multiplication plan”; the third is to double the scale and efficiency of the industrial enterprises on the overall regulation of the city.



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“When the kinetic energy conversion is completed, it is the day of successful transformation and upgrading of Dongguan.” Lv Yesheng said that through the “multiplication plan”, the low-end and order-based manufacturing industry will be transformed into smart manufacturing, making Dongguan’s traditional processing trade from the outside. The transition to independent technology, independent brands and market diversification and globalization. (Hong Kong "Economic Herald" reporter Luo Wensheng)



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Source is "Dongguan Daily"


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