Chen Ailian, deputy to the National People's Congress and chairman of the board of directors of Wanfeng Group: A trillion-level market has sprung up

Chen Yiliang, a reporter from China Economic Weekly, | report on the two sessions of the National People's Congress

During the two sessions of the National People's Congress, Chen Ailian, a deputy to the National People's Congress and chairman of the board of directors of Wanfeng Group, said in an interview that this year's government work report once again puts the development of manufacturing industry in a prominent position, highlighting the determination and confidence of the state to strive to make the manufacturing industry bigger and stronger, "which is very inspiring."

Chen Ailian believes that the future development of the manufacturing industry will pay more attention to the "quality", rather than simply adding "quantity". How to mention "quality"? Chen Ailian's answer is "innovation".

Chen Ailian, deputy to the National People's Congress and chairman of the board of directors of Wanfeng Group

It is imperative to pay more attention to the development of manufacturing industry

This year's government work report proposes to persist in focusing on the development of the economy on the real economy, promote the upgrading of the industrial base and the modernization of the industrial chain, maintain the basic stability of the proportion of manufacturing, transform and upgrade traditional industries, develop and expand strategic emerging industries, and promote the prosperity and development of the service industry.

"This report clearly puts forward that 'the proportion of manufacturing industry is basically stable', which means that the growth rate of Manufacturing production in China should be basically synchronized with the economic growth rate, which is particularly valuable." Chen Ailian said.

Chen Ailian analyzed that the manufacturing industry has an important role in significantly driving economic development. After the outbreak of the international financial crisis, countries attach great importance to the development of manufacturing industry, and strive to enhance the international competitiveness of their own manufacturing industry, about 80% of technological progress and innovative applications are concentrated in the manufacturing industry. In contrast, the proportion of China's manufacturing industry in the economy peaked at 32.45% in 2016, followed by a trend decline in volatility, and the proportion fell to 27.17% in 2019. One of the reasons is the imbalance between The development of China's manufacturing industry and the virtual economy in recent years, resulting in a slowdown or even a downward trend in the number of manufacturing employees and capital inflows.

"A new round of technological revolution will produce new manufacturing, we in China as a developing country, the industrialization process is far from over, the industrial chain, supply chain is in the middle and low end, there are more breakpoints and missing items, and the development space is larger." It is imperative that China pay more attention to the development of manufacturing. Chen Ailian said.

From this year's government work report, Chen Ailian was pleased and clear to see that finance, taxation, scientific research incentives and other aspects continue to vigorously support the manufacturing industry, such as increasing the proportion of manufacturing loans, increasing the proportion of additional deductions for manufacturing enterprises to 100%, using the tax preferential mechanism to encourage enterprises to increase investment in research and development, fully refunding the incremental vat credit amount for advanced manufacturing enterprises on a monthly basis, expanding investment in manufacturing equipment renewal and technological transformation, and so on.

"These measures are enough to show that the country is increasing technological innovation and factor resources to effectively gather in the manufacturing industry, demonstrating the determination and confidence of striving to make China's manufacturing industry bigger and stronger." Chen Ailian said.

The key to improving the level of development of the manufacturing industry lies in "innovation"

In the 27 years since her establishment, Chen Ailian has always focused on manufacturing.

During the "14th Five-Year Plan" period, with the in-depth development of a new round of scientific and technological revolution and industrial transformation, the global manufacturing ecosystem and industrial layout will undergo major changes, the global industrial chain, supply chain, value chain is being deeply adjusted, and the rapid development of mobile Internet, artificial intelligence, big data and other technologies will bring huge development pressure and forward momentum to the traditional manufacturing industry.

Chen Ailian believes that in the face of the new characteristics and new requirements of the new development stage, only by implementing the new development concept, integrating into the new development pattern, significantly enhancing the core competitiveness and accelerating the pace of transformation and upgrading, can enterprises cultivate opportunities in the crisis, open a new situation in the changing situation, and create a great company with high-quality development.

In Chen Ailian's view, the key to measuring the development level of the manufacturing industry in the future lies in "quality", not "quantity".

"How to mention 'quality'? I think the key is always the word 'innovation'. In recent years, on the one hand, Wanfeng Group has continuously improved its global R&D system in the field of auto parts in traditional advantageous industries, with 'lightweight' as the main line, accelerating the transformation to intelligent manufacturing, comprehensively improving manufacturing capabilities, constantly breaking through high-end technology, and developing high-end products; on the other hand, it has accelerated the cultivation of new industries, created new kinetic energy, entered the strategic emerging industries of general aviation and high-end equipment, and quickly achieved technology and market leadership. Chen Ailian said.

According to her, Wanfeng has mastered more than 10 key core technologies such as large thin-wall die casting of magnesium alloy, liquid vapor mixed point cooling, casting lightweight, composite fuselage design, independent design of casting and welding robots, and independent design of general aircraft machines, and is at a leading level in the world.

"We are also constantly improving the 'Technology Breakthrough Special Fund' incentive program internally, strengthening the integration of 'industry,' study, research and use' with colleges and universities and scientific research institutions, taking the lead in promoting the deep integration of the innovation chain and the industrial chain in the industry, and striving to be at the forefront of participating in the global industrial division of labor and competing for the most upstream of the global industrial chain through continuous innovation." Chen Ailian said.

The general aviation industry may become another important engine to promote economic growth

During the two sessions of the National People's Congress this year, Chen Ailian put forward a number of suggestions on accelerating the development of China's general aviation industry.

Since 2015, Wanfeng Group has cut into the general aviation industry of trillion-level industries, and through cross-border mergers and acquisitions, has established a whole industry chain platform with aircraft manufacturing as the core, covering airport construction, general aviation operation, aviation school training, air support, and flight clubs, and produced the world's top three "Diamond" series light sports aircraft with Wanfeng's independent intellectual property rights, becoming a new force in the field of domestic general aviation.

The general aviation industry has become the main direction of Wanfeng's future development, and Chen Ailian is quite optimistic about the development prospects of the general aviation industry.

She analyzed that in 2018, there were more than 210,000 general aviation aircraft in the United States, the economic output of general aviation in the United States reached 247 billion US dollars, the general aviation industry provided a total of 1.2 million jobs, and more than 19,000 take-off and landing facilities serving general aviation, while China only had a few thousand general aircraft and hundreds of general airports in the same period, and there was a staggering gap in the absolute number.

It is worth mentioning that more than 80% of the more than 210,000 general-purpose aircraft owned by the United States are used for consumer use.

"The gap is so large, which means that we have a very broad space for development." In recent years, China's general aviation market has led the world in development, and the Chinese market has sprung up against the background of declining global general aircraft deliveries. From 2014 to 2019, the average annual growth rate of China's general aircraft ownership reached 14.2%. Chen Ailian said.

The general aviation industry has a huge industrial chain, the investment pull effect is generally 1:10, and the employment driving ratio is 1:12. In the next few years, the overall economic scale of the general aviation industry constituted by aircraft manufacturing, operation, support, personnel training and many other links is considerable.

Not long ago, the CPC Central Committee and the State Council issued the "National Comprehensive Three-dimensional Transportation Network Planning Outline". I believe that in the process of building a 'transportation power' and an 'aviation power' and forming a three-dimensional transportation network, it is necessary to 'open up the aorta' and 'smooth microcirculation', and general aviation has an irreplaceable unique advantage in 'smooth microcirculation'. Chen Ailian said.

She believes that with the development of China's social economy and the improvement of people's living standards, the consumer demand for general aviation will inevitably rise rapidly, especially after the gradual liberalization of low-altitude airspace, the demand for unmanned aerial vehicles, general aviation tourism, private flights and other businesses will increase significantly.

"In time, if China's per capita general aviation aircraft ownership reaches the level of the United States, a trillion-dollar new market will be opened in front of us, and the general aviation industry may become another important engine to promote China's economic growth." Chen Ailian said.

Editor-in-charge: Guo Fang

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