NDRC and Related Ministries to Jointly Devise "Internet Plus" Action Plans

The National Development and Reform Commission (NDRC) is working closely with other departments concerned to formulate “Internet Plus” action plans to further stimulate the vitality of the Internet economy. Emerging consumption and investment potential inherent in such innovative products and services as biochip, health services and general-purpose aircraft will be gradually unleashed.

High-tech and strategic emerging industries maintained relatively rapid growth in the first quarter of this year although the economy was facing growing downward pressure. The trend of optimisation and adjustment of the industrial structure has become increasingly obvious. The role played by the accelerated application of new technologies, the endless creation of new products, the successive emergence of new business formats and the release of development potential by new forms of commerce in supporting steady growth and adjusting the economic structure is becoming increasingly obvious.

The following are some of the concrete manifestations:

1. Sustained "medium-to-high-speed” growth supports strengthening of development initiative

According to figures released by the National Bureau of Statistics, the value-added of China's high-tech manufacturing enterprises above a designated scale increased by 11.4% year-on-year in the first quarter of this year, five percentage points higher than that of the total value-added of the manufacturing sector. Since the cumulative value-added of high-tech manufacturing enterprises above a designated scale surpassed that of the total value-added of the manufacturing sector by three percentage points for the first time in March 2014, the leading edge of the high-tech sector has been steadily growing month after month and has shown a lead of more than four percentage points for four consecutive months.

2. Industrial structure moves towards "medium-and-high end" as quality of development shows obvious improvement

The quickened adjustment of the industrial structure has given a power boost to profit growth. High-tech manufacturing enterprises above a designated scale registered a 25.3% growth in profits in January and February this year in sharp contrast to negative growth in profits in the traditional industries. Among these, medium-and-high-end emerging industries that are technology-intensive and have mastered the core technologies, such as aviation and aerospace, integrated circuit, telecommunications equipment and optoelectronic device industries, continued their high-speed growth with year-on-year value-added growth exceeding 15%. A large number of biomed and medical device enterprises with strong innovation capacity have witnessed a sound momentum of development. Projects of strategic emerging industries nurtured by the state are gathering momentum and new breakthroughs are made in core technologies in quantum communications, new materials, new energy, biomedicine and other emerging fields.

3. New business formats quickly take shape to release potential for emerging consumption

Emerging high-tech services represented by e-commerce and mobile Internet have become the bright spots of economic growth. In the first quarter of this year, China's online retail sales of goods and services reached Rmb760.7 billion, up 41.3%. E-commerce boosted the development of the courier and logistics industry, with the courier business growing by 46.8% year-on-year in the first quarter. The success of “online red packets” in spurring consumption offline demonstrated the huge prowess of combining the "Internet Plus" technology innovation with business format innovation. The State Council recently adopted several important measures for accelerating the development of e-commerce and nurturing the new economic engine. A number of major reform measures were put forward, such as easing registration requirements, establishing diversified investment and financing mechanisms, regulations and standards for opening the country to the outside world and developing cross-border e-commerce, and building credit systems.

4. Mass entrepreneurship beams with vitality, mass innovation poised to take off

The release of Several Opinions of the CPC Central Committee and the State Council on Deepening the Reform of Systems and Mechanisms and Accelerating the Implementation of the Innovation-Driven Development Strategy has an important role to play in unleashing the power of innovation and entrepreneurship. The model of innovation is undergoing profound changes in high-tech industries, with a leading manufacturer putting forward the concept of "converting enterprises into open platforms, turning employees into ‘Makers’ and meeting customers’ personalised needs" and building an organisational model for innovation in enterprises.