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Guangdong Targets Advanced Manufacturing and Modern Industries
2011-May-26 Source: Newsgd.com
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During the past five year plan period, Guangdong experienced remarkable changes in its manufacturing sectors and local enterprises experienced substantial development in competitiveness and profit.

Guangdong’s gross industrial value added was 2.1 trillion RMB in 2010, which was 47 percent of the province’s GDP, twice as much as that in 2005 and one eighth of China’s total industrial value added. Local large scale industries delivered goods valued at 2.7 trillion RMB, up 24.6 percent year on year and up 86.5 percent compared with 2005. The value of Guangdong’s delivered goods took up 29.4 percent of the national total.

For years, Guangdong has been the manufacturing base of south China. In 2010, Guangdong manufactured 333 out of 500 new kinds of products produced in above designated size industries across the nation. These products were mainly petrochemicals, foods and beverages, textiles and garments, building materials, machinery, household electrical appliances and automobiles and electronics. The province has very strong competitive power in household electrical appliances and hi-tech products among domestic manufacturers.

Optimized Industrial Structure

During the past five years, heavy industry sector in Guangdong focused on projects related to petrochemical, steel, automobile and nuclear power plants. In 2010, the value added of the province’s heavy industry was 1.5 times that of its light industry. The breakdown of light and heavy industries was 42 : 58 in 2005 and it became 40 : 60 in 2010.

During the same period, the national light and heavy industries breakdown changed from 31: 69 to 29 : 71. Guangdong’s heavy industrial growth was on track with the national average, however, local light industries still took up a comparatively large share of the industrial output compared with national statistics.

Guangdong ranked middle among the nation’s main provinces in terms of hi-tech and equipment manufacturing. In 2010, after a state government survey, the value added rate of the above designated size industries in Guangdong was 23.3 percent, with an 1 percentage point increase every year during the past five years.

Pharmaceutical, electronics, telecommunications, computers and other business machines and their components are the main part of Guangdong’s hi-technical manufacturing. During the past five years, value added of these enterprises went up 17.3 percent annually, 2.4 percent faster than that of the province’s industry as a whole.

In 2010, Guangdong’s hi-technical manufacturing booked an industrial value added of 412.7 billion RMB which accounted for 20.6 percent of the value added yielded by the province’s above designated size industry, 8.9 percent higher than the corresponding statistics of the country.

The overall size of the local equipment manufacturing has doubled in the past five years. The above designated size equipment manufacturing enterprises expanded from 8,880 in 2005 to 14,531 in 2010. The sector’s industry value added shot up from 312 billion RMB to 676 billion RMB and its profit jumped from 58.4 billion RMB to 141.6 billion RMB.

Quality over Quantity

The economic efficiency of local industry was 199.07 in 2010, 49.2 points higher than in 2005. Labor productivity rocketed 73 percent in the past half decade to 144,300 RMB per capita. Compared with the national average Guangdong lagged the rest of the country by 56.5 points in industrial economic efficiency because the profit rate of local industry was relatively low.

In 2010, Guangdong’s ratio of total assets to industrial output was 13 percent, 1.8 percent lower than the national average and the province’s rate of profit based on the cost of production and expenses was 5.4 percent, 1.4 percent lower than the national average. Another reason for a low profit rate was low per capita productivity. Local personnel labor productivity was still 76,800 RMB lower than the national average.

Guangdong officials conclude that the province has improved scientific development, improved the competitiveness of its modern industry, increased self-innovation capacity and successfully implemented its double-transfer mode. However, officials admit that the weak links in development include low industrial input and low per capita product capacity compared with other strong provinces, such as Shandong and Jiangsu.

Guangdong officials plan to expand the province’s annual input in industry by 10 percent plus. The province will also support state-level industrial bases, industrial transfer parks, industrial clusters and three economic rings in the Pearl River Delta will develop new industrial clusters. The province will also put more emphasis on the economic efficiency of local industries.

Editor: Olivia
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