[Two sessions] relying on foreign parts "spell" no innovation

Ma Dexiu, deputy to the National People's Congress and secretary of the Party Committee of Shanghai Jiaotong University, told reporters that the government work report proposed that vigorous efforts should be made to cultivate strategic emerging industries. Now is the right time. She reminded that in previous years, China's photovoltaic, wind power and other industrial fields have seen a situation where they are “one-on-one, one-on-one and scattered” and should be avoided in the future.

Ma Dexiu said that at present, some local governments are eager to stare at investment, output value and the first to buy components and assembly products from abroad. They have launched various new projects and their actual results are counter-productive. Many companies have entered the development paradox of repeated construction and disorderly competition, and in the end they have been abandoned and dispersed.

For example, photovoltaic companies that once flourished were shutting down more than half of the current stage, creating a “virtual heat”. The downstream processing and manufacturing sectors of photovoltaic cell production are over-invested and continue to expand production capacity, but this is a low-level expansion without core technical support. Once the industrial technology is upgraded, increasingly expanding production capacity will turn into bad assets.

Ma Dexiu told reporters that some emerging industries have not really emerged from a new path of innovation and high-level development while they are “fast forward”. Some local governments and companies are keen to buy spare parts and assembling or carry out simple rough machining from abroad. Despite the scale of the industry, they lack the ability to innovate and have no way to master the core technologies. The wind power industry is typical. Due to the lack of independent innovation technology, the core key components rely on imports, and also need to pay the corresponding intellectual property costs to foreign countries, resulting in high wind power equipment costs, and relatively excessive production capacity in the assembly process. Low, even lead to industry losses.

Ma Dexiu said that the key to cultivating emerging industries is to master core technologies, possess independent intellectual property technology and continuous innovation capabilities, rather than blindly expanding at a low level. Emerging industries are the commanding heights of future industrial competition. It is impossible for foreign countries to easily transfer core technologies to us. "Market-for-technology" is just wishful thinking. Therefore, the development of new industries must guide enterprises to increase their investment in technology research and development, break through the bottleneck of core technology, and form a continuous innovation capability.

Ma Dexiu said that in building a development environment, the government should promote the establishment of a strategic alliance among the industry, universities, and research institutes, vigorously support scientific and technological small and medium-sized enterprises, improve the institutional environment that combines management and incentives, and cultivate and cultivate a large number of innovative and entrepreneurial talents.

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