All The Destiny Of China'S Industrial Economy Is In Its Own Hands.

Why is our manufacturing industry very difficult? First, we have three main advantages in the manufacturing industry, namely, cost advantages, scale advantages and institutional advantages. Basically, we have lost, not that we are not smart. China is getting richer and richer. Chinese people dare to spend. The industry can maintain 10%-20% growth. Why not make money? It's not that you are stupid, but your original competitive advantage has been lost.

The most frightening thing in the world today is the sudden loss of core competitiveness.

We say that pformation requires new capabilities, new tools and new business models.

This is the problem we face today.

The second is the impact of the Internet.

We are very indignant. We go to work every day, work at eight in the morning, work at six in the evening, work for more than 10 hours, and my net profit is only 3%, 5%.

Then there are some enterprises, annual net profit has 20%-30%, Baidu net profit 35%, Ali 36%, Shenzhen's Tencent 28%, the Internet has made a great impact on the manufacturing industry.

The third is supply and demand mismatch.

Why do we go to Hongkong to buy milk powder? Why go to Japan to buy eye drops, rice cookers and toilet seats.

There is a mountain spring hotel in Dubai. There are nearly five hundred rooms. Last year's Christmas, 490 of the five hundred rooms were Chinese.

China's manufacturing industry now has three strategic new starting points.

Which three?

First, the Internet has become a universal benefit project. It is our infrastructure.

The two characteristics of infrastructure are ubiquitous and very cheap.

If you ask BAT what the three bosses say about the Internet, they will tell you a standard answer: the Internet is connecting everything.

We are dealing with Internet Co now. The most troublesome thing is that we need to buy traffic from them. Baidu's bidding ranking and Taobao shopping are all traffic.

Why can we earn our money through traffic? Because connections are done by them.

But today's BAT faces a new challenge because the era of traffic is king is over.

In the future, you can sell things on the Internet. If your business still needs the help of traffic distribution, you will have a higher cost.

Why is there a lot of net red, live broadcast mode and community economy today?

The age of Internet enlightenment is over and has become our infrastructure.

The most important ability in the future is how to run faster and how to turn water into a beverage and wine into a tool that we can use.

What is our fundamental? We should make a good pair of shoes and make our bathrooms well.

We can not lose confidence in these Internet entrepreneurs and do not place their fate on BAT. Ma Yun, Ma Huateng and Robin Li are all our tool providers.

This is a new starting point. With the development of the Internet, the tool revolution has ended.

In virtual competition, there will be no tool revolution in the next five years.

Second, the fourth industrial revolution in the world.

How can we improve the efficiency of labor production and how we can iterate products? The manufacturing industry in the world is thinking about this problem.

Why did the topic of reviving manufacturing industry not be discussed before?

In the United States, Obama attaches great importance to the manufacturing industry and proposes the remanufacturing plan of the US manufacturing industry. Japan calls Japan's industrial revival plan, Germany calls industry 4, and China calls China to make 2025. Why Germany, the United States, Japan and China Re put the national strategy in the manufacturing industry.

Because the information revolution has ended, the Internet has become a universal tool.

In the global manufacturing industry, in 1978, when we compared with the Americans and the Japanese for 30 years, if we were five metres worse by 1998, we would be half as bad as them today.

In the fourth time

The path of the Americans and the Germans is different. China is caught in the middle.

Americans believe that my strategic plan is to have a lot of hardware, such as space shuttles, unmanned cars and VR systems. Americans will continue to magnify the achievements of the information revolution led by them in the past 20 years.

The revival of the automotive industry in the United States is now called Mask.

The German, the hidden champion.

They never produce entrepreneurs like Jobs and musk.

But in Hannover, we see many production revolutions.

A German production line, 4 of the world's standard industry.

When private entrepreneurs went to Hannover, when they got there, they came back and asked what experience they had to go to Hannover. Three experiences, pegging the Germans, learning their production line revolution and workshop revolution.

Learning from Americans, buying and selling the whole world.

In the next few years, buy the whole world

The part of the middle industry can win a lot.

Third, consumption upgrading induces supply side reform.

I think this term is a core strategy for China's manufacturing reform during the next five years of 13th Five-Year.

What does this mean? It shows that the central government's determination to eliminate backward manufacturing capacity has been decided.

Supply mismatch, mismatch will produce potential energy, this potential energy is called adaptive potential energy, so long as it is put together, there is an opportunity.

The supply side reform is because it can not satisfy the consumption demand of China's new consumer groups. They are the middle class in China.

Chinese entrepreneurs face less innovation than the biggest local market in the world. They are not entrepreneurs who are not smart. These entrepreneurs are the most astute.

Why? First, because China has no customers willing to do it for you.

Check.

Chinese consumers believe that the four word is "cheap and good quality", which can buy the best products in the world very cheaply.

Two, because no one can pay for your basic research and development, so you will not invest money in basic research and development, will put all the energy in two places, first, reduce costs, second, expand the scale.

Is this the fault of Chinese entrepreneurs? No, global entrepreneurs are all the same.

In 1920s, the rise of the middle class in the United States, the United States became a country on wheels, and Americans began to pay for the American spirit, American culture, American values and American aesthetics.

Then came a lot of brands with American cultural symbols.

Japan has been concerned about serving the Japanese consumers since 1970, because the middle class began to emerge in 1970.

Today's China has appeared in the US in 1920s, and in 1970s Japan had 150 million of the middle class consumption.

Why do we say that the manufacturing industry has lost its advantages in the past five years since the beginning of the golden year, and we can clear it? First of all, we are standing at a new starting point, the Internet has become a universal tool, and we do not need to fear the Internet anymore. Second, on the hardware revolution, China is just like the world's manufacturing power, we are on the new industrial 4 basis; third, the revolutionary changes of our consumers.