Promoting Industry Digitalization: Making Good Use of "Two Hands"

The new generation of digital technology represented by Big data, cloud computing and artificial intelligence is changing with each passing day, giving birth to the digital economy, a new form of economic development. The report of the 20th National Congress of the Communist Party of China proposes to "adhere to the focus of economic development on the real economy" and "promote the deep integration of the digital economy and the real economy"

The new generation of digital technology represented by Big data, cloud computing and artificial intelligence is changing with each passing day, giving birth to the digital economy, a new form of economic development. The report of the 20th National Congress of the Communist Party of China proposes to "adhere to the focus of economic development on the real economy" and "promote the deep integration of the digital economy and the real economy". This requires us to accelerate the process of industrial digitization and enhance the competitiveness of the manufacturing industry.

China has strong potential for the development of the digital economy and various favorable conditions, such as the largest online market, the largest industrial scale, the largest lighthouse factories, the strongest digital infrastructure, and the most intensive new digital enterprises. The most important aspect of industrial digitization is to promote the efficiency improvement of the entire production chain. China's traditional manufacturing industry accounts for a relatively large proportion and faces more tasks of industrial digitization. Digital technology empowers the entire industry chain in the following forms. One is the digitalization of the entire production process within the enterprise, which improves quality and efficiency. The second is to embed new digital services in the industrial chain and provide data collection and analysis services for on chain enterprises, helping them improve business connectivity and collaboration capabilities, and improving overall chain production efficiency. The third is to create a digital producer service platform that brings together the entire range of producer services on the platform. The platform efficiently matches the needs of both parties, and diversified service supply and demand are met together. The fourth is to improve the efficiency of the labor market through digital employment platforms, conduct large-scale and efficient precise matching between supply and demand, and promote the improvement of work efficiency and wage standards. The fifth is to promote energy conservation and emission reduction through digital technology, which can achieve significant energy conservation and emission reduction without compromising safety and comfort.

In the new situation, promoting industrial digitization requires both the hands of the market and the government, and we must adhere to the joint efforts of the government and the market.

From the perspective of the government, it is necessary to provide real-time and effective public services to assist SMEs in Digital transformation. One is to focus on talent cultivation, and we must find truly professional individuals for effective training to help enterprises better grasp the direction and make choices. Second, continue to support digital service enterprises to create a batch of small, fast, lightweight and accurate digital system solutions and products, and constantly accumulate samples to provide reference samples for subsequent Digital transformation of SMEs. Third, support Digital transformation service enterprises to provide public services or inclusive services, and provide consulting services for SMEs in need. Fourth, promote more financial institutions to support the Digital transformation of SMEs. The fifth is to support the construction of open-source and open industrial internet on top platforms, making the deployment of software and hardware for small and medium-sized enterprises more convenient, low-cost, and diversified. It also supports the deployment of multiple platforms for small and medium-sized enterprises, allowing them to carry their own data across platforms or platforms. The sixth is to study and introduce policies related to industrial platform data, clarify the rules for data ownership of all parties on the platform, the "package" data transaction rules for enterprises, cross-border data flow rules, etc., promote the orderly, efficient, and safe use, transaction, and flow of industrial data, and maximize data efficiency.

From the perspective of enterprises, Digital transformation of SMEs should respect market rules. Firstly, the speed and method of digital promotion for small and medium-sized enterprises should respect the market and enterprises. Secondly, the digital technology of large-scale internet platforms needs to adapt to the application needs of specific enterprises and scenarios, and there is also a lot of complex and personalized work. The market should also make a choice which platform is suitable for specific small and medium-sized enterprises. Thirdly, supplementing and strengthening the chain is an important task and an effective measure to address international risk challenges. In the digital era, the advantages and disadvantages of each enterprise, product, and industry chain will be redefined and rapidly changing, and the restructuring of the industry chain on a large scale and with a high frequency is inevitable. We must base ourselves on reality, respect laws, and continuously improve the modernization level of the industrial chain.

(The author is the former deputy secretary-general of the State Council, president of the China Industrial Economics Society, and professor of the University of Chinese Academy of Social Sciences)

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