The Effectiveness Of Structural Adjustment Is Obvious: Enterprise Efficiency Remains Stable Under Low Growth Rate.

Liu Shijin, deputy director of the development research center of the State Council, seems to have some challenges to accomplish this goal.

He said that the economy has begun to receded in the past three or four years, but in addition to the rate of economic growth, China is more concerned about some new features behind the figures.

The key point is that in the process of decreasing economic growth, the profitability of enterprises has remained relatively stable.

Several new features under the new normal

"The first point is to adapt to the slowdown in economic growth. Our economic structure is undergoing some pitional changes with a long-term significance."

Liu Shijin stressed at the beginning of this year's China enterprise development summit that attention should be paid to the new changes following the data.

In 2012, consumption share of GDP has begun to exceed investment.

In 2013, the proportion of the third industry exceeded second industries for the first time.

China's foreign trade growth rate remained above 20% before the financial crisis, and has now dropped to the 5% to 10% growth range.

In terms of supply, the total labor force in China began to decline in 2012.

Sheng Lai Yun also said that the growth rate of investment has continued to slow down this year, and the shift of export growth has led to a continuous increase in consumption. The contribution of final consumption to economic growth in the first three quarters is 48.5%, which is 7 percentage points higher than the total contribution of capital formation, and the overall economic rebalancing situation is more obvious.

Liu Shijin believes that these data indicate that China's economic structure based on investment and relying on external demand and relying on factors to increase growth is undergoing substantial changes.

The eastern coastal areas where the growth rate has taken the lead has achieved the improvement of the quality and efficiency of the economic operation. "This is a very important line."

He said that the growth rate of Shanghai, Beijing and several other big cities has gone down to a higher level.

"These big cities at a relatively low level of growth are now basically stable.

Because the rapid growth of China's economy started from the eastern region first, now that the economy is down, whether the eastern region can be stabilized is more important. "

According to the GDP data released by the provinces, the daily economic news reporter found that in the first quarter of this year, the eastern coastal provinces and municipalities accounted for nearly 50% of the total GDP.

An important feature of structural adjustment is the adaptability of corporate earnings to slower growth.

"In the past, when the growth rate of industrial added value was 10% or less than 10%, the losses of enterprises were more serious."

Liu Shijin said that since May 2012, the growth rate of industrial added value has been below 10%, but the deficit situation of enterprises is generally better than that of the historical level.

"Of course, the level of profitability of the industry has also been split."

The first type of heavy chemical industry, such as coal, iron ore, chemical industry, iron and steel, nonferrous metals and so on, has seen a sharp decline in sales profit margins.

Textiles, clothing,

Sales of traditional advantageous industries, including furniture, products and household appliances, are basically stable.

"This shows a situation. Especially after 2013, the whole industry is still in a pick-up trend, the speed has come down, but the efficiency has basically stabilized, which is very important for the economic growth in the pitional period."

Liu Shijin said.

In 2013, the growth rate of GDP in several provinces was lower than expected, which did not happen before.

In the first quarter of this year, 22 provinces lowered the expected target of economic growth in 2014, emphasizing on improving the quality and efficiency of growth.

In addition, there is no large-scale unemployment in the decline of economic growth.

Traditional businesses are still in pain

The traditional heavy industry continues to seek pformation in the new normal, and it is the way to survive and develop through the pain period.

Take the steel industry as an example, since the fourth quarter of 2011, the main industry of iron and steel has been in a state of loss.

Li Xinchuang, Deputy Secretary General of the China Iron and Steel Industry Association and director of the metallurgical industry planning and Research Institute, said in October 17th that although the three quarter of this year has improved, it can not change the fundamental state of the low growth of the steel industry.

In October 17th, Hebei iron and Steel Group Shijiazhuang iron and steel city relocation project signed.

In addition, Handan, Wuan steel integration relocation, Tangshan Bohai iron and steel coastal relocation, Chengde vanadium titanium industrial base, Shougang two phase project structural adjustment projects are in progress.

Li Xinchuang said that the new normal of steel is consumption growth at a low growth rate, followed by a marked decline in production level compared with the high growth in the past few years.

In China

During the period of rapid development of "fifteen" and "11th Five-Year", high-speed industrialization exploded blowout demand.

"The excessive demand at that time made more products in short supply.

All of us are going to build capacity.

Of course, some of the capacity is not in short supply, is the market oriented reason. "

At that time, Li Wei, deputy director of the SASAC and director of the research and development center of the State Council, said that the problem of overcapacity has become increasingly prominent in recent years because of slowing demand. "From the traditional steel, electrolytic aluminum to photovoltaic and so on, from coast to inland, it can be said that basically there is no industry left, but the degree is different, and homogenization competition is very serious."

Li Wei said that the overcapacity of the whole country highlights the phased characteristics of China's economic development, and this stage is probably not too short.

In the reality of buyer's market, the market requires enterprises to accelerate pformation so as to realize differential competition.

The pformation of Chinese enterprises has been in practice for ten or twenty years, but no matter what the pformation of enterprises is, it is impossible to give a unified definition in academia or economic circles.

The more recognised business pformation refers to the overall pformation of the long term business direction, operation mode and the corresponding organization mode of resource allocation. It is a process for enterprises to rebuild competitive advantage, enhance social value and form new enterprise form.

The pformation of enterprises can be roughly divided into external upgrading pformation and internal upgrading pformation.

Shougang is an example of upgrading outside.

In the past, Shougang was an important source of environmental pollution in Beijing, and the steel industry suffered from overcapacity.

In this case, Shougang chose to develop non steel industry to spread risks.

In 2013, the profit of the non steel industry of Shougang Group reached 6 billion yuan, an increase of nearly 1 billion 600 million yuan compared with 2012. The non steel industry has become a new pillar for the development of Shougang.

The upgrading of enterprises includes many aspects, such as product and market pformation, management pformation, brand pformation, business mode pformation and so on.

"For example, in terms of brand pformation, China's coastal areas have a large number of export oriented enterprises based on processing trade, mainly engaged in foundry production."

Li Wei said that the impact of the international market and exchange rate fluctuations, labor costs and other factors are huge, these enterprises are marginalized or even marginalized.

But at present, the research and development center of the State Council finds that processing trade enterprises are developing from non brand subcontracting to brand producing independent brands.

"The process of moving from a brand to an independent brand is certainly hard and even painful, especially in the early stage, but this step must be taken."