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China’s Key Policies and the Impacts on
Maritime Industry
Liwei Tan
Business Finland in Shanghai
Contents
• Summary of “Made in China 2025”
• Two Centenary Goals
• Results of implementation
• Related policies for maritime industry
• Opportunities for Finnish companies
• Services of Business Finland
1/30/2018 Copyright @ Business Finland in Shanghai 2
Make in China 2025 (I)
1 Target 2 Integration 3 Septs 4 Principles
2025 2035
2049
market-
oriented &
government-
guided
long-term
perspective
making
breakthroughs
Independent
development
& win-win
cooperation
1/30/2018 Copyright @ Business Finland in Shanghai 3
Make in China 2025 (II)
5 Guidelines 5 Projects 10 Key Sectors
Innovation
Smart
manufact
uring
Industrial
bases
Green
manufact
uring
High-end
Equipment
1/30/2018 Copyright @ Business Finland in Shanghai 4
• By 2021, to build a
moderately prosperous
society in all respects by the
centenary of the Communist
Party of China (CPC)
Two Centenary Goals
• By 2049, to build a modern
socialist country that is
prosperous, strong,
democratic, culturally
advanced and harmonious by
the centenary of the People’s
Republic of China
1/30/2018 Copyright @ Business Finland in Shanghai 5
Objectives
Indicator 2015 2020 2025
Innovation Expenditure on R&D as % of revenue 0.95% 1.26% 1.68%
Valid invention patents per RMB 100 million in revenue 0.44% 0.70% 1.10%
Quality Manufacturing quality competitiveness index 83.5 83.5 85.5
Manufacturing value added ratio - Up 2% from 2015 Up 4% from 2015
Labour productivity growth rate in manufacturing (%) - 7.5% (2016-2020) 6.5% (2021-2025)
Industrialization
&
Informatisation
Fixed broadband penetration rate (%) 50 70 82
Penetration rate of digital research tools (%) 58 72 84
Average level of digitization of key production and
work processes (%)
33 50 64
Green
Manufacturing
Industrial value-added energy consumption - Down 18% from 2015 Down 34% from 2015
Carbon dioxide emissions per unit of industrial value
added
- Down 22% from 2015 Down 40% from 2015
Water consumption per unit of industrial value added - Down 23% from 2015 Down 41% from 2015
Utilisation rate of industrial solid waste (%) 65% 73% 79%
1/30/2018 Copyright @ Business Finland in Shanghai 6
Results (I)
AQI on 18.Dec.2016 Beijing in Dec.2016
AQI on 5.Dec.2017 Beijing on 24.Jan.2018
1/30/2018 Copyright @ Business Finland in Shanghai 7
• Average percentage of fine
days in Beijing was 62,1%,
increased 6,9%
• PM2.5 concentration was 58
micrograms / cubic meter,
down 20,5%
• PM10 concentration was 84
micrograms / cubic meter,
down 5,6%
Results (II)
1/30/2018 Copyright @ Business Finland in Shanghai 8
Figures in 2016
• Energy consumption per 10.000-yuan
GDP dropped 0,5% from 2015.
• Share of clean energy consumption
increased by 1,7%.
• National Internet penetration rate was
53,2%.
• 295K domestic invention patents was
granted, increased 15% from 2015
• Number of domestic effective invention
patents exceeded 1 million.
• Signed technology contracts of 1,145
trillion RMB (~144 billion Euro),
increased 16% from 2015.
Related Policies (I)
Issued Date Name
25. Jan. 2018 Special Action Plan for Prevention and Control of Ship Pollution in the Yangtze River Economic Belt (2018-2020)
04. Jan. 2018 Action Plan for Sustainable and Healthy Development of Offshore Engineering Equipment Manufacturing (2017-
2020)
27. Dec. 2017 Implementation Plan for Key Technology Industrialization of High-end Ship and Offshore Engineering
28. Nov. 2017 Equipment Three-year Action Plan for Strengthening the Core Competitiveness of Manufacturing (2018-2020)
08. Nov. 2017 Guidelines for Industrial Common Key Technologies Development (2017)
21. Jun. 2017 The Belt and Road Initiative for Building Maritime Cooperation Special Plan for Science and Technology
13. Jun. 2017 Innovation in the Transport Sector for the Thirteenth Five-Year Plan
08. Feb. 2017 Notice of Establishment of Key Project Base for Integrated Standardization and New Mode of Intelligent
Manufacturing
24. Jan. 2017 Guidelines for New Materials Industry Development
17. Jan. 2017 Action Plan for Deepen Structural Adjustment and Accelerating the Transformation and Upgrading of Shipbuilding
Industry (2016-2020)
15. Dec. 2016 Development Plan for Smart Manufacturing (2016-2020)
1/30/2018 Copyright @ Business Finland in Shanghai 9
Related Policies (II)
Issued Date Name
25. Nov. 2016 Guideline of Investment in Technical Transformation and Upgrading for Industrial Enterprises (2016 Edition)
(Shipbuilding Industry)
22. Sep. 2016 Notice of Central Governmental Financing the Innovative Development of Marine Economy during the 13th Five-
Year Plan Period
13. Sep. 2016 Catalog of Encouraged Imported Technologies and Products (2016 Edition)
01. Sep. 2016 Guideline of Promoting the Quality Brand of Equipment Manufacturing Industry
31. Aug. 2016 Limits and Measurement Methods of Emissions of Marine Engine Exhaust Pollutants (China's First and Second
Phases)
30. Aug. 2016 Guideline of Manufacturing Innovation Center Projects Implement
12. Aug. 2016 Notice of Continuously Promoting Industrial Structure Adjustment
05. Aug. 2016 Standardization and Quality Improvement Plan for Equipment Manufacturing Industry
5th Aug. 2016 Guideline of Development Service-oriented Manufacturing
11. Jun. 2016 Supervision and Management Methods for Standardization Ship Industrial Enterprise (Draft for Comment)
22. Jun. 2016 Made in China 2025-Implementation Plan of Energy Equipment
1/30/2018 Copyright @ Business Finland in Shanghai 10
Opportunities
• Green: monitoring hardware and software for emission control areas
on the sea and inland water; solutions of water quality supervision,
control and purification
• Quality: not cost-driven, willing to pay higher price for better quality,
standardization will benefit to after-sales services
• Digitalization: not only for ship-owners but also for shipbuilding
industry, operation at the ports. However, Chinese are quite sensitive
and strict on the information communication and data control.
• Business environment: will be more standardized and legalized.
Request foreign companies localized
1/30/2018 Copyright @ Business Finland in Shanghai 11
Services
• Business Finland was created on 1st January 2018 by the merger of two organizations: Finpro,
which offered services for internationalization, investments and tourism promotion, and Tekes,
which offered funding for innovation activities
• Business Finland has 600 experts working in 20 regional offices in Finland and 40 overseas offices.
Business Finland is part of the Team Finland network.
1/30/2018 Copyright @ Business Finland in Shanghai 12
THANKS!
KIITOS!

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China’s key policies and the impacts on maritime industry

  • 1. China’s Key Policies and the Impacts on Maritime Industry Liwei Tan Business Finland in Shanghai
  • 2. Contents • Summary of “Made in China 2025” • Two Centenary Goals • Results of implementation • Related policies for maritime industry • Opportunities for Finnish companies • Services of Business Finland 1/30/2018 Copyright @ Business Finland in Shanghai 2
  • 3. Make in China 2025 (I) 1 Target 2 Integration 3 Septs 4 Principles 2025 2035 2049 market- oriented & government- guided long-term perspective making breakthroughs Independent development & win-win cooperation 1/30/2018 Copyright @ Business Finland in Shanghai 3
  • 4. Make in China 2025 (II) 5 Guidelines 5 Projects 10 Key Sectors Innovation Smart manufact uring Industrial bases Green manufact uring High-end Equipment 1/30/2018 Copyright @ Business Finland in Shanghai 4
  • 5. • By 2021, to build a moderately prosperous society in all respects by the centenary of the Communist Party of China (CPC) Two Centenary Goals • By 2049, to build a modern socialist country that is prosperous, strong, democratic, culturally advanced and harmonious by the centenary of the People’s Republic of China 1/30/2018 Copyright @ Business Finland in Shanghai 5
  • 6. Objectives Indicator 2015 2020 2025 Innovation Expenditure on R&D as % of revenue 0.95% 1.26% 1.68% Valid invention patents per RMB 100 million in revenue 0.44% 0.70% 1.10% Quality Manufacturing quality competitiveness index 83.5 83.5 85.5 Manufacturing value added ratio - Up 2% from 2015 Up 4% from 2015 Labour productivity growth rate in manufacturing (%) - 7.5% (2016-2020) 6.5% (2021-2025) Industrialization & Informatisation Fixed broadband penetration rate (%) 50 70 82 Penetration rate of digital research tools (%) 58 72 84 Average level of digitization of key production and work processes (%) 33 50 64 Green Manufacturing Industrial value-added energy consumption - Down 18% from 2015 Down 34% from 2015 Carbon dioxide emissions per unit of industrial value added - Down 22% from 2015 Down 40% from 2015 Water consumption per unit of industrial value added - Down 23% from 2015 Down 41% from 2015 Utilisation rate of industrial solid waste (%) 65% 73% 79% 1/30/2018 Copyright @ Business Finland in Shanghai 6
  • 7. Results (I) AQI on 18.Dec.2016 Beijing in Dec.2016 AQI on 5.Dec.2017 Beijing on 24.Jan.2018 1/30/2018 Copyright @ Business Finland in Shanghai 7 • Average percentage of fine days in Beijing was 62,1%, increased 6,9% • PM2.5 concentration was 58 micrograms / cubic meter, down 20,5% • PM10 concentration was 84 micrograms / cubic meter, down 5,6%
  • 8. Results (II) 1/30/2018 Copyright @ Business Finland in Shanghai 8 Figures in 2016 • Energy consumption per 10.000-yuan GDP dropped 0,5% from 2015. • Share of clean energy consumption increased by 1,7%. • National Internet penetration rate was 53,2%. • 295K domestic invention patents was granted, increased 15% from 2015 • Number of domestic effective invention patents exceeded 1 million. • Signed technology contracts of 1,145 trillion RMB (~144 billion Euro), increased 16% from 2015.
  • 9. Related Policies (I) Issued Date Name 25. Jan. 2018 Special Action Plan for Prevention and Control of Ship Pollution in the Yangtze River Economic Belt (2018-2020) 04. Jan. 2018 Action Plan for Sustainable and Healthy Development of Offshore Engineering Equipment Manufacturing (2017- 2020) 27. Dec. 2017 Implementation Plan for Key Technology Industrialization of High-end Ship and Offshore Engineering 28. Nov. 2017 Equipment Three-year Action Plan for Strengthening the Core Competitiveness of Manufacturing (2018-2020) 08. Nov. 2017 Guidelines for Industrial Common Key Technologies Development (2017) 21. Jun. 2017 The Belt and Road Initiative for Building Maritime Cooperation Special Plan for Science and Technology 13. Jun. 2017 Innovation in the Transport Sector for the Thirteenth Five-Year Plan 08. Feb. 2017 Notice of Establishment of Key Project Base for Integrated Standardization and New Mode of Intelligent Manufacturing 24. Jan. 2017 Guidelines for New Materials Industry Development 17. Jan. 2017 Action Plan for Deepen Structural Adjustment and Accelerating the Transformation and Upgrading of Shipbuilding Industry (2016-2020) 15. Dec. 2016 Development Plan for Smart Manufacturing (2016-2020) 1/30/2018 Copyright @ Business Finland in Shanghai 9
  • 10. Related Policies (II) Issued Date Name 25. Nov. 2016 Guideline of Investment in Technical Transformation and Upgrading for Industrial Enterprises (2016 Edition) (Shipbuilding Industry) 22. Sep. 2016 Notice of Central Governmental Financing the Innovative Development of Marine Economy during the 13th Five- Year Plan Period 13. Sep. 2016 Catalog of Encouraged Imported Technologies and Products (2016 Edition) 01. Sep. 2016 Guideline of Promoting the Quality Brand of Equipment Manufacturing Industry 31. Aug. 2016 Limits and Measurement Methods of Emissions of Marine Engine Exhaust Pollutants (China's First and Second Phases) 30. Aug. 2016 Guideline of Manufacturing Innovation Center Projects Implement 12. Aug. 2016 Notice of Continuously Promoting Industrial Structure Adjustment 05. Aug. 2016 Standardization and Quality Improvement Plan for Equipment Manufacturing Industry 5th Aug. 2016 Guideline of Development Service-oriented Manufacturing 11. Jun. 2016 Supervision and Management Methods for Standardization Ship Industrial Enterprise (Draft for Comment) 22. Jun. 2016 Made in China 2025-Implementation Plan of Energy Equipment 1/30/2018 Copyright @ Business Finland in Shanghai 10
  • 11. Opportunities • Green: monitoring hardware and software for emission control areas on the sea and inland water; solutions of water quality supervision, control and purification • Quality: not cost-driven, willing to pay higher price for better quality, standardization will benefit to after-sales services • Digitalization: not only for ship-owners but also for shipbuilding industry, operation at the ports. However, Chinese are quite sensitive and strict on the information communication and data control. • Business environment: will be more standardized and legalized. Request foreign companies localized 1/30/2018 Copyright @ Business Finland in Shanghai 11
  • 12. Services • Business Finland was created on 1st January 2018 by the merger of two organizations: Finpro, which offered services for internationalization, investments and tourism promotion, and Tekes, which offered funding for innovation activities • Business Finland has 600 experts working in 20 regional offices in Finland and 40 overseas offices. Business Finland is part of the Team Finland network. 1/30/2018 Copyright @ Business Finland in Shanghai 12