China accords top priority to supply chain stability

Nation set to bring upgrades to sectors and play bigger role in global recovery

China will work to ensure the stable operation of industrial and supply chains this year, which experts said will help accelerate the nation's industrial upgrade and contribute to the recovery of global industrial economy.

The move was announced by Premier Li Keqiang in the government work report on Friday.

China will implement projects for upgrading industrial infrastructure foundation and give full play to large enterprises' capacity to provide leadership and support, and to the collaborative and supporting role of micro, small and medium-sized enterprises, or MSMEs, the report said.

Meanwhile, the nation will further develop industrial internet and build additional platforms for generic technology research and development to enhance the capacity of MSMEs to make innovations and engage in specialized production.

The plans came after the nation's industrial output, an important economic indicator, reached 31.31 trillion yuan ($4.83 trillion) last year, making it the world's largest manufacturing country for 11 consecutive years. But challenges exist as China relies heavily on imports for certain key technologies such as high-end semiconductor products.

Qiao Biao, deputy head of the China Center for Information Industry Development, a Beijing-based think tank, said as uncertainties continue amid the COVID-19 pandemic, a more resilient and flexible industrial chain is an important foundation for the growth of China's economy.

"Meanwhile, China's efforts to ensure the stable operation of industrial and supply chains will contribute to the whole world, given the nation's position in the global industrial economy," Qiao said.

This year, China will also step up the development of 5G networks and extend the application of the superfast wireless technology in more settings, the government work report said, adding that the layout of emerging industries will be planned in a well-coordinated way.

"We will champion the pursuit of fine workmanship to boost the quality of Chinese manufacturing," the report said.

Yang Yuanqing, CEO and chairman of Lenovo Group Ltd, said China is transitioning from a manufacturing powerhouse to a smart-manufacturing center and this will generate more opportunities for enterprises.

Yang, who is also a deputy to the 13th National People's Congress, called for more efforts to provide financing support to supply chains and to promote the application of financial technology in supply chain finance to improve efficiency and prevent risks.