According to data released by the National Bureau of Statistics, in the first two months of this year, the profits of China's industrial enterprises above designated size increased by 4.8% year-on-year, reversing the previous trend of declining industrial profits throughout the year.

Five Major Opportunities for Industrial Development

The Reportindicates that China's industrial economic development model is accelerating its transformation, new growth drivers are emerging, and the fundamentally positive long-term outlook remains unchanged.

1. Continuous Optimization and Upgrading of Industrial Structure

The ongoing optimization and upgrading of the industrial structure provide a solid foundation for industrial development. Currently, China's factor input structure is gradually shifting from being dominated by labor-intensive and capital-intensive industries to being dominated by capital- and technology-intensive industries. This is mainly manifested in three aspects:

• •First, the growth rate of traditional industries is slowing down, while high-tech manufacturing, high-end equipment manufacturing, and consumer goods manufacturing are in an expansionary state.
• •Second, the proportion of fixed asset investment in raw material and high-energy - consuming industries is on a downward trend, while the investment proportion in the machinery and electronics industry and high-tech manufacturing is continuously rising.
• •Third, the import of resource - based products has increased significantly, and the export growth of mechanical and electrical products and high-tech products is remarkable. The export delivery value of advanced manufacturing accounts for over 60% of the total industrial export delivery value. "Made in China" is gradually transforming into "Quality Made in China".

2. Implementation of National Policies

The implementation of national policies such as the "Mass Entrepreneurship and Innovation" strategy and "Made in China 2025" has become an endogenous driving force for industrial innovation. The "Mass Entrepreneurship and Innovation" strategy eliminates various institutional constraints and shackles that are unfavorable to entrepreneurship and innovation through structural reforms and institutional mechanism innovations, and supports various market entities in continuously starting new businesses, developing new products, and exploring new markets. "Made in China 2025" has established the strategic task of improving the innovation ability of China's manufacturing industry, emphasizing not only corporate technological innovation but also corporate business model innovation.

3. Development of Global Disruptive Technologies

The development of global disruptive technologies serves as an external driving force for industrial innovation. Advanced manufacturing technologies represented by robots and 3D printing, and information technologies represented by cloud computing, the Internet of Things, and big data are becoming the technological backbones for the re - industrialization process of major countries in the world. These technologies are bringing about profound changes in the production methods, development models, industrial forms, and organizational methods of the world's manufacturing industry, pushing it towards intelligent manufacturing, collaborative manufacturing, networked manufacturing, and green manufacturing. At present, China has achieved breakthrough progress in some areas.

4. Benefits of Regional Coordination Strategies

The benefits of regional coordination strategies such as the Beijing - Tianjin - Hebei region, the Yangtze River Economic Belt, and the "Belt and Road" Initiative are gradually emerging, creating huge demand space. These regional coordination strategies not only promote balanced regional development and infrastructure construction investment but also enhance the convenience of integration in various aspects between regions. The "Belt and Road" Initiative also enables Chinese enterprises to improve their industrial competitiveness and adjust their industrial structures during the process of "going global".

5. Comprehensive Deepening of Reform

The comprehensive deepening of reform provides a strong institutional guarantee for industrial development. The guidance of the government's strategies, plans, and policies, the strengthening of government constraints, and the strict implementation of market access standards effectively address issues such as overcapacity, enabling the sustainable development of the manufacturing industry. As the reform deepens, the market and the government can effectively complement and cooperate with each other, further releasing the dividends of reform.

Seeking New Paths to Improve Industrial Competitiveness

2016 is the first year of the 13th Five - Year Plan. Regarding how to lay a solid foundation for the healthy development of industrial enterprises, the Reportproposes the following suggestions:

1. Implement the Innovation - Driven Strategy

To achieve the transformation of the industrial economic development model, it is necessary to build a service - oriented government, continuously improve the market mechanism, accelerate the decentralization of power, and enhance the vitality and creativity of industrial economic entities. At the same time, it is essential to increase support for the research and development of new technologies and new products, accelerate the transformation of new technologies into productivity, and actively cultivate new models, new business forms, and new products.

2. Expand Domestic Demand

Expand and upgrade consumption to stimulate the role of consumption in driving industrial growth. Actively expand and upgrade consumption, vigorously develop new technologies and new products, encourage commercial business model innovation, create new consumer demand through new supply, and guide consumption towards intelligent, green, and healthy directions. With the help of various regional coordination strategies, actively promote the development of central and western regions and urbanization in various regions to boost consumption. At the same time, optimize the consumption environment and promote the service - oriented development of manufacturing enterprises.

3. Promote Supply - Side Structural Reform

Improve the contribution of medium - and high - end industries to China's economic growth, promote the development of China's modern service industry, and enhance the capabilities of labor - and resource - intensive industries and low - technology industries.

4. Improve Investment Efficiency

Give full play to the guiding role of fiscal funds. Focus on solving the problem of overcapacity, explore new investment potential, and increase investment in people's livelihood, science and technology, and environmental protection projects. Reform the investment and financing system, give play to the guiding role of fiscal policy, and stimulate the vitality of private capital.

5. Unleash Enterprise Vitality

Make enterprises the main players in market competition. Vigorously promote the reform of mixed ownership. Dispose of zombie enterprises, long - term loss - making enterprises, and inefficient and ineffective assets. Actively introduce assistance policies to relieve enterprise difficulties. Leverage the "Belt and Road" construction to enable more enterprises to go global and participate in international competition and cooperation.

6. Improve the Financial Market

Guard against systemic financial risks. Adhere to a prudent monetary policy. Improve the financial supervision system. Strengthen the support of the financial sector for the real economy. Financial institutions should increase their support for the real economy in accordance with the national industrial and credit policies.

It is not difficult to see from the above analysis that the opportunities and development directions of China's industry play an important guiding role in the development of the construction machinery industry. In line with the changes in China's industrial profit index, the sales volume of excavators in February this year, after a continuous decline, rebounded for the first time, bringing firm development confidence to industry insiders. Meanwhile, at the 14th China Construction Machinery Development High - level Forum held a few days ago, Zeng Guang'an, Chairman of Liugong, also believed that "spring is coming". It is believed that with the joint efforts of industry insiders, the spring of the construction machinery industry is just around the corner.