Wind vane of the construction machinery industry: interpretation of the 2024 government work report

Amidst the ups and downs, the 2024 government work report sets a new tone for the construction machinery industry. New quality productivity, what signals are released; How to boost confidence, inject new vitality into the industry, and how the trend of future industrial policies will stir up waves in the export of "new three types"... This article will deeply interpret the essence of the report, analyze the impact of the industry, and explore unknown areas. Let us take advantage of the power of the east wind, set sail, and together embark on a prosperous feast in the new opportunities of the construction machinery industry!

1、 Promote the optimization and upgrading of industrial and supply chains

Implement the action plan for high-quality development of key industrial chains in the manufacturing industry, focusing on filling the gaps, elongating the long gaps, forging new ones, and enhancing the resilience and competitiveness of the industrial and supply chains. Implement the manufacturing technology transformation and upgrading project, cultivate and strengthen advanced manufacturing clusters, create national new industrialization demonstration zones, and promote the high-end, intelligent, and green transformation of traditional industries. Promote the specialized and innovative development of small and medium-sized enterprises. Strengthen standard guidance and quality support, and create more "Made in China" brands with international influence.

Interpretation: For the construction machinery industry, by optimizing and upgrading the industrial chain and supply chain, enterprises can achieve better production processes and cost control, while enhancing the industry's ability to resist external shocks, thereby improving its competitiveness in the international market. Cultivating and strengthening advanced manufacturing clusters is also an important lever to promote industries towards the mid to high end, enhance the resilience and safety level of industrial and supply chains, and facilitate the formation of scale effects and competitive advantages such as collaborative innovation, talent aggregation, cost reduction and efficiency improvement.

Enhance international market competitiveness

2、 Deeply promote the innovative development of the digital economy

Formulate policies to support the high-quality development of the digital economy, actively promote digital industrialization and industrial digitization, and promote the deep integration of digital technology and the real economy. Deepen the research and development of big data and other applications, take action, and build a digital industry cluster with international competitiveness. Implement the digital transformation of manufacturing industry and accelerate the large-scale application of industrial Internet.

Interpretation: With the in-depth development of a new round of scientific and technological revolution and industrial reform, digital technologies such as big data, the Internet, cloud computing, blockchain and so on have a profound impact on the manufacturing industry. Digital economy has become an important engine to promote high-quality development of the manufacturing industry. The current digital economy is frequently mentioned and included in government work reports, reflecting the necessity and urgency of digital transformation in the manufacturing industry. At the same time, foreseeable targeted favorable policies will provide new opportunities for growth and transformation and upgrading for construction machinery enterprises when facing greater technological upgrading pressure.

Deeply promote the innovative development of the digital economy

3、 Accelerate the promotion of high-level technological self-reliance and self-improvement

Strengthen the layout of basic research systems, provide long-term stable support for a number of innovation bases, advantageous teams, and key directions, and enhance original innovation capabilities. Aiming at the major strategic needs of the country and the needs of industrial development, deploy and implement a number of major scientific and technological projects. Integrate national strategic scientific and technological forces, social innovation resources, promote collaborative research and development of key technologies, and strengthen research on disruptive and cutting-edge technologies. Improve the operational management mechanism of national laboratories and leverage the radiating and driving role of international and regional science and technology innovation centers. Accelerate the systematic layout of major scientific and technological infrastructure, promote the construction of common technology platforms and pilot verification platforms. Strengthen the dominant position of enterprises in scientific and technological innovation, encourage enterprises to increase innovation investment, deepen the integration of industry, academia, research and application, and support capable enterprises to lead major research and development tasks. Accelerate the formation of a basic system that supports comprehensive innovation, deepen the reform of science and technology evaluation, science and technology rewards, scientific research projects, and fund management systems, and improve the "unveiling and leading" mechanism. Strengthen intellectual property protection and formulate policies and measures to promote the transformation of scientific and technological achievements.

Interpretation: Accelerating the realization of high-level technological self-reliance and self-improvement is the only way to promote high-quality development. Only with technological self-reliance and self-improvement can we truly raise the level of high-quality development, grasp the initiative of development, and enhance the security of development. In recent years, under the national layout of "national key equipment", China's equipment manufacturing industry has continuously overcome the "bottleneck" problem and set multiple world records in multiple fields. I believe that with the further and systematic layout of technological innovation by the country this year, China's construction machinery industry will accelerate the transformation from traditional manufacturing methods to intelligent and green manufacturing, and vigorously enhance its original innovation capabilities, promoting the construction machinery industry to have more initiative and discourse power in global competition.

Accelerate the promotion of high-level technological self-reliance and self-improvement

4、 Actively expanding effective investment

Give full play to the amplification effect of government investment, focus on supporting technological innovation, new infrastructure, energy conservation, emission reduction and carbon reduction, strengthen weak areas in the economy and society such as people's livelihood, promote the construction of flood control, drainage and disaster relief infrastructure, promote the updating and technological transformation of various production and service equipment, and accelerate the implementation of major engineering projects in the 14th Five Year Plan.

Interpretation: In terms of intensity, the investment within the 2024 budget and local special bonds have increased compared to 2023. From the perspective of investment direction, these investments mainly focus on areas such as technological innovation, energy conservation and emission reduction, and people's livelihood security to fill gaps and increase momentum. These are positive signals for the construction machinery industry, which are expected to promote the upgrading of construction machinery equipment and encourage enterprises to engage in technological innovation and transformation; Drive the growth of industry demand, provide support for the recovery and improvement of the industry, and offer broader growth opportunities for the industry.

Invest in technological innovation, energy conservation and emission reduction, and people's livelihood security

5、 Inspire the vitality of various business entities

Deepen the implementation of state-owned enterprise reform and upgrading actions, strengthen and optimize the main business, enhance core functions, and improve core competitiveness. Increase the proportion of loans to private enterprises and strengthen classified assistance and support for individual businesses. Promote the entrepreneurial spirit, actively support entrepreneurs to focus on innovative development, dare to take risks and invest, and work hard to run their enterprises well.

Interpretation: In the 2024 government work report, the deepening of reforms has been given unwavering impetus, with the deepening and upgrading of state-owned enterprise reforms becoming an important part. For the construction machinery industry, enhancing core functions and improving core competitiveness are the responsibilities of state-owned enterprises. In recent years, state-owned construction machinery enterprises represented by XCMG have continued to deepen reforms, overcome institutional barriers, and fully played a leading and demonstrative role. It is believed that with the deepening of the new round of reforms, state-owned construction machinery enterprises will vigorously enhance their status as "major national heavy equipment". In addition, in the face of downward pressure and challenges in the economy, the government work report mentions "increasing the proportion of private enterprise loans", further supporting enterprises to broaden channels from a policy perspective, which is of great significance for stimulating the vitality of the construction machinery market, greatly boosting the confidence of private enterprises in construction machinery, and effectively promoting the high-quality development of construction machinery.

State owned construction machinery enterprises will vigorously enhance the quality of "major national heavy equipment"

6、 Promote high-quality joint construction of the "the Belt and Road"

The implementation of the eight actions to support high-quality joint construction of the "the Belt and Road" should be well implemented. Steadily promote major project cooperation, implement a number of "small but beautiful" livelihood projects, actively promote cooperation in digital, green, innovation, health, cultural tourism, poverty reduction and other fields. Accelerate the construction of the Western Land Sea New Corridor.

Interpretation: In recent years, the "the Belt and Road" has created many new development opportunities for China's construction machinery industry, and provided new options for globalization, so that Chinese construction machinery manufacturers can fully benefit from it. With the further improvement of the "the Belt and Road" investment policy and service system, China's machinery manufacturing enterprises and engineering construction enterprises should work together to build high-quality, sustainable, risk resistant, affordable, and accessible infrastructure, and strive to promote the construction of the Silk Road on land, at sea, in the sky, and on the Internet, so as to comprehensively improve the level of infrastructure connectivity between countries. At the same time, industry related enterprises should also seize the favorable opportunity to accelerate the construction of the Western Land Sea New Corridor and promote rapid economic development in the western region.

Comprehensively enhance the level of infrastructure connectivity between co built countries

7、 Deepen multilateral, bilateral, and regional economic cooperation

Promote the implementation of effective free trade agreements and sign high standard free trade and investment agreements with more countries and regions. Promote the negotiation of the China ASEAN Free Trade Area version 3.0, and push for accession to the Digital Economy Partnership Agreement and the Comprehensive and Progressive Agreement for Trans Pacific Partnership. Comprehensively and deeply participate in WTO reform, promote the construction of an open world economy, and let more win-win results of cooperation benefit people of all countries.

Interpretation: In recent years, China has made new breakthroughs in the negotiation and signing of free trade agreements. The content of free trade agreements is becoming increasingly rich and the level is constantly improving. This is of great significance for the construction machinery industry to accelerate the construction of a new development pattern for exporting overseas markets. Industry related enterprises should seize opportunities, fully leverage the advantages of China's domestic market and complete industrial chain, further explore overseas markets, promote the "going global" of the entire industrial chain, and build high-quality infrastructure projects and demonstration projects.

Deepen multilateral, bilateral, and regional economic cooperation

8、 Steadily promote rural reform and development

We will deepen the implementation of rural construction actions, vigorously improve rural infrastructure and public services such as water, electricity, gas, and information, strengthen the construction of charging piles, cold chain logistics, and delivery facilities, increase the seismic renovation of rural houses, continuously improve the living environment in rural areas, and build livable, business friendly, and beautiful countryside.

Interpretation: Since the reform and opening up, rural development has made certain progress, but the speed of development and progress is not as fast as that of cities, especially in the areas of infrastructure and public services. The government work report proposes to deepen the implementation of rural construction actions in order to improve the living environment in rural areas, especially in terms of infrastructure and public service support, to fill the gaps in rural areas, and to promote the integration and coordinated development of urban and rural areas. The in-depth implementation of rural construction actions will attract various capital factors such as national finance and social funds to flow into rural areas. As a result, the construction machinery industry will seize this opportunity for new development, especially for small equipment, which is expected to play a role in rural construction, agricultural water conservancy, and farmhouse construction.

Small devices showcase their skills in rural construction

9、 Actively promote new urbanization

Cultivate and develop county-level economy, fill in the gaps in infrastructure and public services, and make county towns an important carrier of new urbanization. Steadily implement the urban renewal action, promote the construction of "dual-use" public infrastructure and urban village renovation, accelerate the improvement of underground pipeline networks, promote the solution of problems such as installing elevators and parking in old residential areas, strengthen the construction of barrier free and aging friendly facilities, and create livable, smart, and resilient cities.

Interpretation: In recent years, China's rural urbanization has made significant progress, but there are still nearly 300 million farmers who have become so-called "new citizens" after entering the city and have not taken root. The "new" of new urbanization is to truly shift the focus of work to the urbanization of the rights and interests of urban residents, so that the agricultural population entering the city is both a participant, contributor, and beneficiary of urbanization, and they should equally enjoy basic urban public services such as healthcare, elderly care, and children's education. In promoting the new urbanization, we have effectively facilitated the employment placement of agricultural migrant population in urban areas, and continuously achieved new results in the integrated development of urban and rural areas. With the continuous improvement of urban and rural infrastructure, the demand for construction machinery will also follow. Seizing the new round of urbanization construction may become a new growth point for the industry.