10 Years of WTO: Electronic Power Goes to Electronics Power

This year marks the 10th anniversary of China’s accession to the World Trade Organization. In the past 10 years, China's electronic information industry has gradually integrated itself with the international market and has made great progress. In order to commemorate the 10th anniversary of China's accession to the WTO and to analyze the relationship between WTO and the development of China's electronic information industry, the newspaper has launched a series of special topics entitled "The 10th Anniversary of China's Accession to the WTO."

In the ten years of the current status of the industry, China’s electronic information industry has seized the opportunity of further opening the international market, actively introduced foreign investment, accelerated the transfer of international industries, expanded product exports, and encouraged enterprises to “go global” transnational operations. All aspects of the industry have made great progress.

From 2001 to 2010, China's electronic information industry sales revenue increased from 0.82 trillion yuan to 7.8 trillion yuan, an average annual growth rate of 28.4%.

The continuous optimization of the structure of large-scale manufacturing processes in the electronic infrastructure industry has resulted in continuous upgrading of the entire product lineup. The design level of integrated circuits in China is from 0.8 micrometers to 1.5 micrometers, and it generally has the following 0.13-micron process level and one million gate-scale design capability. Some leading companies have 45-nm/40-nm design capabilities and the largest design scale exceeds 100 million gates. The manufacturing process starts from a 0.25-micron to 12-inch production line, and the 65-nm chip can already be mass-produced. The 45-nm process enters the early stage of R&D. In 2003, SVA and BOE began construction of the 5th generation production line. At present, there are 4 5th Generation Lines and 2 4.5th Generation Lines in China. The 6th generation lines of BOE and China Panda have also been completed and put into production. The trend of tablet, network, intelligence, and greenization of computer products such as computers, color TVs, and mobile phones is significant: LCD TV production accounts for 75.5% of total color TV output; notebook PC output accounts for 75.6% of total PC output, and tablet PCs The sales volume of desktop and desktop machines grew by over 30%; 3G mobile phone production increased by 60% year-on-year, and smart phone production accounted for more than 20%.

The software industry has developed rapidly and the industrial structure has been continuously optimized. After joining the WTO for 10 years, China's electronic information industry has changed from a single manufacturing industry to a combination of manufacturing and software services. Under the support of the "introduction and going out" strategy, China's software industry has made considerable progress, accounting for 18% of the electronic information industry from 6% in 2001; export revenue has grown from 750 million U.S. dollars in 2001. By the end of 2010, it had an average annual growth rate of 49%. Huawei, ZTE, ChinaSoft, UF, and Other backbone software companies have achieved fruitful results by “going global”, and their international competitiveness has continued to increase. There have been 11 companies with exports exceeding US$100 million.

Since the rapid development of foreign trade accession to the WTO, the scale of import and export of electronic information industry has maintained a rapid growth. In 2010, China’s total import and export trade of electronic information products exceeded US$1 trillion, from US$124.1 billion in 2001 to US$101.2 billion, an increase of 7 times, and the proportion of China’s total import and export volume maintained at over 30%. Among them, the export value increased from US$65.02 billion in 2001 to US$591.2 billion in 2010, and the import amount increased from US$59.08 billion in 2001 to US$421.6 billion in 2010. Affected by the international financial crisis, in 2009, the import and export of electronic information products decreased by 12.8% year-on-year, with the first negative growth. However, after more than a year of hard work, the rate of recovery of foreign trade continues to accelerate. In 2010, the growth rate of imports and exports exceeded 30% again.

Breakthrough in research and development has achieved major breakthroughs in the areas of integrated circuits, software, mobile communications, new types of components, digital audio-visual, and computer technology. A batch of medium- and high-end chips such as general-purpose CPUs were successfully developed and put into production. The level of integrated circuit design exceeded 65 nm, and the 909 upgrade and reconstruction project achieved initial results.

Chinese Linux, domestic middleware, financial and enterprise management software, and anti-virus software with independent intellectual property rights have been successfully developed and widely used in various fields of economy and society. Third-generation mobile communications, digital trunking communications, and optical communications technologies have entered the world's advanced ranks. The TD-SCDMA standard of independent intellectual property rights has become one of the three major international standards. Its evolutionary technology has become a 4G international candidate and has begun commercial use. The gap between the development of core technologies in the field of optoelectronics and the international advanced level has gradually narrowed, and higher value-added products such as optical fiber preforms, liquid crystal panels, organic light emitting diodes, and solar polysilicon have been produced. The autonomous audio and video standards such as AVS and DRA have become national standards and have achieved relevant applications; a number of digital television related products and standards have entered the commercialization stage, and the supporting capabilities of dedicated chips have been enhanced. The calculation capabilities of “Galaxy” and “Dawn” have entered the forefront of the world. High-performance servers such as Shenteng have broken foreign blockades, and router switches have reached the international advanced level. The next generation of Internet core equipment has made significant progress in R&D. The standard and intellectual property strategy were vigorously promoted, and a number of technical standards such as TD-LTE, AVS, DRA, DTMB, and IGRS relying on independent intellectual property rights were formed. In 2010, the total number of patent applications in the national information technology field exceeded 1.1 million, ranking the first in all industries.

Outward experience in development is an important way to use foreign capital to accelerate development The development of an export-oriented economy is an important way for China’s electronic information industry to rapidly expand on a large scale. Since joining the WTO, foreign-funded enterprises have accelerated their investment in China. More than 90% of IT enterprises in Fortune's “Global 500” have entered China, and Business Week’s “Top 100 Global IT Companies” has basically invested in China. Foreign-funded enterprises are becoming an important pulling factor for industrial development. In 2010, the main business income of foreign-funded enterprises in the electronic information industry in China accounted for 72.4%. At the same time, the technological spillover effect of foreign investment project technology introduction has, to a certain extent, improved the technological level of the domestic electronic information industry.

Processing trade accounts for a large proportion of China's electronic information manufacturing industry. Since the accession to the WTO, the export of electronic information products in China has grown significantly. From 2001 to 2010, the average annual growth rate was 27.8%. If you leave the impact of the international financial crisis and calculate the amount of exports in 2008, the average annual growth rate will reach 34.7%.

We must adhere to the combination of "bringing in" and "going out" to participate in international economic and technological cooperation and competition in a wider range, broader areas, and higher levels. The electronic information industry is highly internationalized. Implementing the “going out” strategy is an inevitable choice to make full use of both domestic and international markets and two resources to become bigger and stronger. At present, the “going global” strategy of leading enterprises represented by top 100 electronics companies has achieved remarkable results. Many enterprises’ export and overseas operating income accounts for more than half of the total, and they have become truly multinational companies. Huawei and ZTE have entered the first-line camp of global telecommunication equipment providers, ranking second in the world and fourth in operating revenue; Lenovo and NEC have ranked third in the global PC market after joint ventures; Haier, Hisense and TCL are The status of the world's household appliances has become increasingly prominent, with some product shares ranking in the top five in the world; BOE, Tongfang, Guangzhou Radio, and Hikvision are among the top 10 in the world in terms of output of LCD panels, security inspection systems, ATM machines, and video surveillance systems.

Technology is still a key issue. The ability to independently innovate is not strong, and key core technologies are controlled by people. Key products such as high-end universal chips, core electronic devices, and large-size LCD panels are almost all dependent on imports. In the areas of communications, computers, digital audio-visual products, electronic devices, and information materials, the number of domestic invention patent applications is significantly lower than that of foreign countries. The key technologies are relatively backward, the number of core patents is small, and the industrialization of scientific and technological achievements is slow, which is not conducive to the industry becoming bigger and stronger.

Most of the production capacity is at the low end of the value chain, and the industry is greatly affected by the international market. It mainly concentrates on the large-scale assembly and processing of the whole machine and low-end components, and is basically in the downstream of the industrial chain and the low end of the value chain.

At the same time, industries are more susceptible to fluctuations in the international market. In particular, under the impact of the financial crisis, the global demand for electronic information products has shrunk, and the value of exports has fallen. In addition, the domestic market has not driven the development of the industry, and the problem of weak industrial autonomy has become increasingly prominent.

It is proposed to balance the internal and external markets (1) to concentrate their efforts on breaking key core technologies and enhancing independent innovation capabilities.

Accelerate the implementation of national key science and technology projects such as "core electronic devices, high-end general-purpose chips and basic software products," "very large-scale integrated circuit manufacturing equipment and complete sets of processes," and "a new generation of broadband wireless mobile communication networks," and overcome a number of core technologies. Develop a batch of key products. Increase the financial support for the application of information technology, and focus on supporting the industrial applications of autonomous technologies, products, and electronic special equipment.

(II) Further promote industrial restructuring and actively cultivate new growth points.

Aiming at the development direction of the new generation of information technology and making forward-looking strategic plans to nurture and expand next-generation network communication system equipment and intelligent terminals, high-performance integrated circuits, new displays, cloud computing, Internet of Things, digital homes, key electronic components and materials, etc. In the emerging field, a number of new growth points with a wide range of radiation and strong driving force will be cultivated. Adjust and optimize the layout of major productivity, increase industrial scale effect and supporting cooperation level.

(3) Accelerating the cultivation of large enterprises and SMEs with unique advantages, and consolidating the basis for industrial development.

Support powerful companies to implement mergers and reorganizations, and encourage qualified companies to conduct multi-level cooperation with overseas technology companies and R&D institutions, and accelerate the formation of a number of multinational corporations with independent intellectual property rights, internationally recognized brands, and international marketing channels. Guide small and medium-sized enterprises to develop in the direction of “specialization, refinement, specialization, and newness”, build an industrial division of labor system with large enterprises as the leader and supporting small and medium-sized enterprises, and promote the establishment of scientific mechanisms for collaborative cooperation among enterprises.

(IV) Guide the orderly transfer of industries and promote the coordinated development of the region.

Give full play to the guiding role of industry management departments and local governments in industrial transfer and cooperation, as well as the basic role of market allocation resources, strengthen planning, resource and market interface, study and formulate relevant policies to promote industrial transfer, and promote the Pearl River Delta and Changjiang. The advantageous regions of the electronic information products manufacturing industry, such as the Delta, Bohai Rim, and Fusha Coastal Areas, extend to the high end of the industrial value chain, give play to the leading role of the advantageous regions in the radiation of China's electronic information products manufacturing industry, and guide the industries from east to west and from south to north. An orderly shift has resulted in the formation of an industrial development pattern in which the industrial division of labor system is reasonable, with distinctive features, mutual cooperation, and complementary advantages.

(5) Further implement the policy of expanding domestic demand and balance the development of domestic and foreign markets.

We will continue to maintain and stabilize the development of the international market, optimize the structure of export products, increase the development of emerging markets, and diversify the export market. To focus on expanding domestic demand, especially increasing consumer demand, adjust the industrial structure and make full use of the scale advantages of the domestic market. To maintain policy continuity, further improve home appliances to the countryside, continue to implement the home appliance replacement policy, and support the development of domestic photovoltaic market and promotion of LED energy-saving lighting products. Actively cultivate the rural market, promote the upgrading of products, and meet the diverse needs of urban and rural consumers.

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