Premier Li Keqiang: Chinese Manufacturing is “Large in Scale but Weak in Competitiveness”

Chinese Premier believes vocational training and IP protection need improvement.

China's Premier Li Keqiang.

China’s Premier Li Keqiang.

If you ask someone on the street to complete the phrase “Made in _____,” the odds are better than not that they’ll answer “China.” Home to nearly a fifth of the world’s population, the country wields enormous influence on the global stage, particularly when it comes to manufacturing.

That’s what makes it so surprising that a report from China’s Premier, Li Keqiang, would describe it as, “[S]till at the lower end of the international division of labor, large in scale but weak in competitiveness…”

The statement comes from a government website as part of recent remarks by Premier Li on the state of his country’s manufacturing sector, following a symposium on promoting the Chinese economy in general and manufacturing in particular.

“Manufacturing is fundamental for economic development. Only if China’s manufacturing industry gains strength for development, can the economy realize transformation and upgrades, and attain new-type industrialization,” the Premier said.

To that end, Premier Li argued that his country should undertake greater efforts to “eliminate backward production capacity and technology,” something that can be seen in recent developments in the Tianjin Economic-Technological Development Area (TEDA).

In addition to the usual government platitudes about improving product quality and brand recognition, the Premier emphasized the importance of transforming China’s primary manufacturing advantage from being low-cost to high-tech—specifically, the Industrial Internet of Things (IIoT) and big data.

Premier Li also urged China’s industry leaders to promote technical training and vocational education by providing incentives and opportunities to encourage the country’s young people to seek careers in manufacturing.

“We should take full advantage of our abundant resources of talent in improving the performance of and upgrading the manufacturing sector,” Premier Li said, echoing the calls to recruit millennials to address the skills gap in North America.

It’s also worth noting that Premier Li called for enhanced market regulation and the protection of intellectual property rights to crack down on the production and sale of counterfeit goods. His other regulatory recommendation concerned encouraging financial institutions to develop better methods of financing for enterprises, “especially SMEs.”

All this goes to show that—their monolithic image notwithstanding—Chinese manufacturers are facing many of the same hurdles as those in America: outdated technology, a lack of fresh talent and financial and regulatory hurdles. The two countries will no doubt address these issues in very different ways, but, especially given the rise in international tension, it never hurts to be reminded that we’re not so different after all.

Who do you think has the better approach when it comes to strengthening manufacturing, the U.S. or China? Share your thoughts in the comments below.

Written by

Ian Wright

Ian is a senior editor at engineering.com, covering additive manufacturing and 3D printing, artificial intelligence, and advanced manufacturing. Ian holds bachelors and masters degrees in philosophy from McMaster University and spent six years pursuing a doctoral degree at York University before withdrawing in good standing.