This year, the Chinese economy continues to slow down, so that the economic restructuring has become very difficult. To a certain extent, many Chinese enterprises practical difficulties (including LED enterprises) faced, are shaking the Chinese government's determination to promote economic restructuring. If China "accidentally" Back to the massive stimulus infrastructure "steady growth" model, is likely to have obliterated the previous reform of economic restructuring efforts, the Chinese economic growth and pull back in orbit.
    For decision-makers, when they focus on short-term "steady growth" this realistic goals, do not ignore the long-term goal of China's economic development - structural adjustment and transformation of economic growth mode. In our view, China's economic transformation, in fact, is a constant search for new growth momentum in the process, along with China's aging, as well as labor and capital accumulation gradually reach the limit, China's growth model will have to turn to a revolutionary technology and innovation.
In economic policy, China should pursue elements from the past into the scale pattern of growth towards a more pursuit of "total factor productivity" growth mode. The so-called "total factor productivity" (Total Factor Productivity), often called the rate of technological progress, in the neoclassical growth theory used to measure the role of pure technical advances in production, growth accounting in development since the 1960s, the As an integral part of long-term sources of economic growth, it is widely used in policy and academic fields. The so-called pure technological progress, including improving knowledge, education, technical training, economies of scale, organization and management and other aspects of those hard concrete technological progress.
    Obviously, the current pressures facing China's economy, not only means past growth patterns encountered a problem and show that TFP has shown a downward trend. Recently, UBS economist Magnus in an analysis of the article pointed out that China's attractiveness as a global manufacturing center still, but some trends are gradually weaken this advantage. Domestically, including rising labor costs and a shortage of technology and innovation policy of discriminatory application of intellectual property rights are not protected, the rule of law is weak, the state-owned enterprises and other entities suppressed. This can lead to what kind of results? When China's economic growth momentum weakened in the past, but did not find a new growth engine.
    Where is the way out of China's economic future at home and abroad scholars out of the "prescription" tens of thousands, but the original aim, the core content is still the transformation of economic development and structural adjustment -? In fact, this " prescription "has been adopted by decision-makers. However, the transformation and structural adjustment only strategic objectives, at the operational level, but also need to be more specific starting point. In our view, China's economic future to maintain long-term competitiveness, should seize several key areas:
    First, the Chinese economy can not abandon the "manufacturing advantages." China's economy is a big country economy, "world factory" status is not who a vacuum seal, but China's reform and opening up of the results of thirty years of hard work, is the latest round of global industrial division choice. Meanwhile, the Chinese government at all levels is the "world factory" status have also invested a huge amount of resources. Taiwan's industry insiders "to build manufacturing plants, the environment and efficiency in mainland China the world's first", this evaluation for nothing. China's economic transformation can not give up the manufacturing sector (including LED manufacturing) advantage, "world factory" or engage.
    Second, China's manufacturing up to the "big" do "strong." China's so-called "manufacturing advantages," mainly refers to the scale advantages in the past - cheap industrial manufacturing advantages at lower levels, it can not be called strong manufacturing sector. Even in the backward countries in Africa view, "Made in China" are also "Cheap price, Bad quality" (cheap quality times) bad image. In the large-scale manufacturing base, China has a lot to enhance the level of manufacturing space.
Thirdly, to enhance manufacturing and urbanization and the development of services does not conflict. China's new government will maintain the new town as a starting point for economic growth, at the same time, with the urbanization process, the development of the service industry has become a bright spot in China's economic policy. However, both the starting point and the upgrading of the manufacturing does not constitute a conflict of strategy. No urbanization and manufacturing support services are lacking a solid industrial base.
    Fourth, the key to enhancing the manufacturing sector is "upgrade." This means that the future of the manufacturing sector is a new type of manufacturing. The most luxurious and innovative in the world the United States is promoting the "re-industrialization", but the "re-industrialization" is not simply return to industrialization, but a "fine industrialization", revitalization is full of high quality, technological innovation, design innovation, higher value-added manufacturing. Differences between China and the US is great, but to enhance the manufacturing strategy is worth learning. Development of China's manufacturing industry to pursue innovative, high-quality, environmentally friendly, in policy and institutional should make sweeping changes around this core.
Final analysis conclusion (Final Analysis Conclusion):
China's economy to maintain long-term competitiveness, to find a new engine, the solution is to upgrade the manufacturing sector. On the goal, China should be the development of Germany as a benchmark of manufacturing.