Huang Zhangkai: The large number of applications of digital technology has spawned new types of physical enterprises to help the real economy

　　Zhongxin Jingwei November 18 Title: The large number of applications of digital technology has spawned new types of entity enterprises to help the real economy

　　Author Huang Zhangkai Associate Professor, Department of Finance, School of Economics and Management, Tsinghua University, Deputy Director of China Financial Research Center, Tsinghua University

　　The "14th Five-Year Plan" and the outline of long-term goals for 2035 clearly point out that we should adhere to the focus of economic development on the real economy and promote the deep integration of advanced manufacturing and modern service industries.

　　The 34th collective study of the Political Bureau of the CPC Central Committee proposed to promote the deep integration of digital technology and the real economy, empower the transformation and upgrading of traditional industries, and continuously strengthen and optimize China's digital economy.

　　The author believes that in general, through the large number of applications of digital technology, it can greatly help traditional manufacturing enterprises to improve efficiency, and at the same time give birth to new types of entity enterprises under the real economy. Ultimately, the "comprehensive transcendence" of the digital economy will be realized.

　　Three roles of digital technology on entities

　　Digital technologies play a key role in the real economy. The first is precise customization, many companies have been able to achieve more accurate customization of goods from the supply side when directly facing consumers. For example, more than 1,000 manufacturing companies have built C2M reverse supply chains through JD.com to provide customized services for differentiated consumer demand. While greatly improving efficiency, it is of great help to enterprises, so that enterprises can be the production end of product providers and know the needs of consumers more accurately. This is more conducive to promoting consumption upgrading and manufacturing transformation.

　　The second is logistics. Recently, there have been many logistics problems in the United States, resulting in a serious shortage of goods in supermarkets near Christmas. Companies often face the main problem of logistics, which is that the supply chain must be both fast and low cost. The digital economy can better help manage the supply chain, greatly avoiding shocks from the supply chain. Improving the production efficiency of enterprises is also very closely related to the real economy. At the same time, through the large number of applications of digital technology, it has brought high-quality logistics services to consumers, improved the efficiency of supply chain operations for merchants, and provided modern infrastructure for the high-quality development of China's economy.

　　Third, the development of the digital economy will eliminate intermediaries in the traditional sense. For example, in the entire supply chain, data is an "island". So is there a business that can connect them and provide services? This year's Jingdong "Double Eleven", Jingdong Logistics based on the needs of the precipitated over the years of the big promotion and industry insights, for 3C, FMCG, home appliances, clothing, automotive, fresh and other industries of business to provide integrated supply chain solutions and logistics service support covering the supply chain strategy to the implementation, effectively help customers to achieve spot rate improvement, inventory week change fast, performance efficiency, operating costs and other goals during the promotion period, to achieve high-quality growth.

　　New types of entity enterprises are crucial to the real economy

　　On October 22, at the annual meeting of the 2021 Financial Street Forum, Zhou Xiaochuan, former president of Chinese Min Bank, said that digital currency is an important part of the digital economy, China has always emphasized that finance serves the real economy, and China will show its correctness and superiority through practice.

　　The "old-fashioned" or the so-called real economy in the traditional sense of the past is limited to industrial processing and agriculture. But new types of brick-and-mortar companies are completely different, such as a company providing optimized logistics services, which can greatly help manufacturing companies, achieve stable supply chains and "zero inventory", or help produce better products. Then, such a data provider or optimizer should belong to the service industry when accounting, but it provides a close service for the real economy, so it belongs to the category of new entity enterprises.

　　From this point of view, the "new" of our so-called new type of entity enterprise has emerged, which is not traditional and cannot be viewed narrowly, and cannot be judged only from how many "things" can be seen and felt, but depends on the use of data by enterprises and how much value can be generated from them. "In addition, the real economy cannot be narrowly understood as manufacturing, and the service industry around manufacturing is also the real economy, including digital economic services."

　　From the perspective of research and development, the real economy cannot be separated from research and development. Large foreign technology companies, in addition to their own research and development, but also mergers and acquisitions of a large number of independent enterprises. For example, Alpha Dog, an artificial intelligence company from the UK, is an independent business that was later acquired by Google. Alpha dogs themselves do not produce anything visible and tangible , and are part of the service industry , according to British economic accounting rules. But we can imagine that modern service enterprises like them will play a very big role in promoting the real economy.

　　The digital economy will help traditional manufacturing companies achieve "overtaking in curves"

　　There is still a gap between the total factor productivity of the Chinese economy and the United States, but in the digital economy, it is not inferior to the United States, and even occasionally surpasses, which is recognized by the whole world. On the contrary, the digital economy can greatly help China's traditional manufacturing enterprises to improve efficiency and achieve "curve overtaking". In terms of supervision, it is also necessary to pay attention to "specialization and special innovation", avoid the occurrence of management that is too broad or "one-size-fits-all", and avoid the phenomenon of "spilling the child and the bath water together", and some situations need to be handled specially. At the same time, regulatory involvement is necessary by establishing a series of bottom-line thinking that encourages companies to use data to improve manufacturing efficiency and make bold attempts.

　　In terms of digital economy service manufacturing enterprises, regulation does not need to take the initiative to break the data "island", but it is necessary to prevent enterprises from abusing consumer data. Why China's digital economy has been able to overwhelm Europe across the board, and Europe's excessive regulatory policies are an important reason for this result, so we must learn a lesson. (Zhongxin Jingwei APP)

Huang Zhangkai

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