The State Council has launched a series of major technological upgrading projects to support the transformation and upgrading of industries such as steel.

Wang Jingwen, deputy director of the Macroeconomic Research Center at the Minsheng Bank Research Institute, commented to a reporter from the Economic Information Daily that the phrase “proving your mother is your mother” was once cited by the Premier as a classic joke, while the expression “difficult access, unpleasant treatment, and cumbersome procedures” is often used to describe the performance of certain public service agencies. At this executive meeting, specific measures were outlined to address these issues, notably streamlining administrative processes, enhancing inter‑departmental coordination, and promoting online services and digital feedback mechanisms—steps that will genuinely simplify daily life and work for the public while also strengthening oversight of public institutions.

　　The meeting concluded that accelerating the technological upgrading and transformation of enterprises—strengthening “Made in China” by enhancing its core capabilities, improving quality and efficiency, and forging new competitive advantages—is a crucial step to both improve supply and expand demand. This is not only an urgent priority but also a long-term strategic imperative. The meeting decided to focus on key areas outlined in “Made in China 2025,” leverage the principal role of enterprises, and, guided by the principle of maintaining support where appropriate while applying prudent restraint, adopt a market‑oriented approach aimed at raising quality and profitability. Accordingly, a batch of major technological upgrading projects will be launched to help market‑driven enterprises in traditional sectors such as light industry, textiles, steel, and building materials upgrade their design, processes, equipment, and energy efficiency, thereby effectively reducing costs and fostering the growth of innovative firms and emerging industries. To this end: first, a guidance catalog for industrial technological upgrading will be issued, accompanied by an annual plan identifying priority projects, to channel social capital and other resources toward these initiatives and stimulate enterprises’ intrinsic motivation to align with market needs and undertake independent upgrades; second, preliminary procedures will be streamlined, parallel approval processes will be promoted to expedite project implementation, and a commitment‑based filing system will be explored and extended to eligible upgrading projects that do not require additional land; third, fiscal and tax measures will be advanced, with innovative approaches to the use of central government funds for technological upgrading to enhance their effectiveness, while local governments are encouraged to increase support for such efforts. Financial services will be improved, with robust mechanisms for financing guarantees and risk compensation put in place to incentivize banks to restructure loans, expand credit for technological upgrading, and support enterprises in broadening access to direct financing. Moreover, alternative financing models—including crowdsourcing, crowdfunding, and peer‑to‑peer innovation—will be encouraged to pool resources and expertise, helping overcome bottlenecks in technological upgrading.

　　Gao Yuwei, a researcher at the Bank of China’s Institute of International Finance, told a reporter from the Economic Information Daily that enhancing technology and efficiency is an indispensable path during economic downturns. Experience shows that in periods of economic expansion, aggregate market demand grows substantially, making it easier for businesses to thrive; however, once the economy enters a downturn, weak market conditions weed out some firms while compelling surviving companies to upgrade product quality and refine production processes. Compared with greenfield projects, technological upgrading initiatives require lower investment, deliver quicker results, and yield higher returns, making them particularly well-suited to mature and traditional industries. There are no outdated industries—only outdated products. By retrofitting existing capacity with cutting-edge technologies, enterprises can reduce costs and bolster their competitiveness. To advance technological upgrading, it is essential to uphold the enterprise’s central role; the government should provide targeted tax and fee incentives, expand the scale of dedicated funding, leverage fiscal resources to catalyze investment, and strengthen public services such as approval and filing procedures, inspection and testing, and trial‑and‑certification support.

　　Li Jin, chief researcher at the China Enterprise Research Institute, analyzes that, in the current period and for the foreseeable future, China’s primary task is to shift industrial development from being driven mainly by resource consumption to being innovation‑driven, and to transition from conventional processing and manufacturing toward high‑end manufacturing. As an investment approach that leverages incremental capital inputs to guide adjustments in existing assets, technological upgrading is a crucial measure for accelerating the transformation of the economic development model and a key lever for optimizing and upgrading the industrial structure.