CCTV 2:

This year, much of China's major technological equipment have drawn widespread attention acrosssociety. Examples of this are the Airliner C919, special marine engineering machinery vessels, and manufacturing equipment. What positive impact will these breakthroughs have on the overall operation of Chinese industry and the economy? What key issues need to be addressed for further development? Thank you.

Miao Wei:

Thank you for your question. The development of major technological equipment is closely related with the national strategic security as well as the lifeblood of the national economy. As strategic products for basic applications, major technological equipment are important indicators to evaluate a country's core competitiveness in the manufacturing sector. They are of great value to a country, and help to support and propel the development of thenational economy.First, the rapid development of major technological equipment will beeffectivein helping China upgrade its industry and technologies, strengthening the foundations of industry as well as theindustrial chaincapacity.Second, major technological equipment can also provide infrastructure for key areas of the national economy such as inenergy,the petrochemical industry and transportation. Thus, the development of major technological equipment is of great strategic significance in building China into anation that does high-quality manufacturing.

Earlier you mentioned the Airline C919. In the process of its R&D and manufacturing, an industrial chain, involving over 20 provinces, such as Shaanxi, Sichuan and Liaoning, was established. The industrial chain included over 200 enterprises and some 200,000 staffand were led by Shanghai. A number of well-established private enterprises, including some multinationals, have participated in the R&D system of Airline C919. Indeed, the development of major technological equipment requires advanced technologies and a huge initial investment; it is also a work that involves high risks and a long manufacturing cycle. Thus, the challenge of having imbalanced and insufficient development in such projects is important to bear in mind. In this regard, firstly, we need to deepenreformsinadministrative systems and mechanisms, where innovative potential hasyet to be leashed, and energy and motivation are far from sufficient. In addition,issues pertaining to incorporating the capital chain, industrial chain and a chain of innovation still need to be addressed. Secondly, our weakness in terms of basic components, advanced techniques and materials for high-end equipment remains a salient problem. This is especially so when it comes to the equipment for precision manufacturing applied on an assembly line, as well as the testing facilities, all of which need further development. Thirdly, the quality of products and manufacturing need also tobe improved. Some products are comparatively less reliable and stable whileothers are poorly branded.

In the future, we will continue to take supply-side structural reform as our main task, making collaborative efforts to promote R&D and to foster project-oriented and industry-specific manufacturing. We will work to strengthen our key weaknesses and improve our capacity for innovation in order to promote the high-quality development of major technological equipment.

First, we need to strengthen overall coordination. We will work to strengthen the role of the National Leading Group for Building China into a Manufacturer of Quality, coordinating the efforts of all involved, to jointly promote the innovative development of major technological equipment across regions, industries and fields.

Second, we need to promote the innovation of our R&D system, which should be supply-driven, enterprise-centered; involve thecooperation of enterprises, universities, research institutions and consumers, and thecoordinationby manufacturersand business at different stages andscalesof development. Sucha system of innovation should fully empower andmotivate our society to solve critical difficulties.

Third, we need to promote the application for the first batches of key equipment, try to build mechanisms to allow for errors in the application of the first batches, so that key equipment can be improved upon during the application process.

Fourth, we need to improve international cooperation by adhering to a market-driven approach in order to better integrate into the global system of demand and supply. Thank you.