ROBUST PRIVATE INVESTMENT BOOSTS UPGRADE
Restructuring has also taken place in other parts of the country. South China's Guangdong Province, the country's main manufacturing hub, is demonstrating a healthier development pattern with strong private investment.
Guangdong's private investment during H1 saw 19.6 percent growth year on year, well ahead of the 2.8 percent recorded across the country. Private investment contributed to 90 percent of the total growth of investment in Guangdong over the same period..
Private investment can sensitively reflect the market environment. The rapid growth implies that the market is offering new opportunities, said Chen Hongyu, deputy head of the Guangdong economic society.
Statistics show that nearly 70 percent of private investment went into manufacturing and the tertiary industry.
Early restructuring moves have brought new energy to Guangdong's economy, with high-end manufacturing and Internet-related services growing as favored sectors for investment.
During the first half of the year, high-end manufacturing in the province registered 10 percent growth year on year. The Internet-related service sector saw a 43 percent annual growth in revenue.
Guangdong Incode Automation is a company focusing on the research and production of encoders used in industrial robotics. These days deputy general manager Luo Rihui has been busy listening to venture capital organizations from around the world.
"As long as we have the core technology, capital will automatically come to us," he said.
Guangdong-based appliance giant Midea launched a smart electric cooker last year, which sold at 3,000 yuan per set, about ten times the price of the old model.
Company chairman Fang Hongbo said, the new product has sold much better than the old one, which has highlighted the importance of quality-driven growth.
Ding Li, expert with the Guangdong Academy of Social Sciences, said that some traditional industries such as home appliances, textiles, furniture and porcelain in the province are embracing new technology and a business model for new development at a time when the economy is facing downward pressure.
