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Independent Innovation is the Inevitable Choice for China to Become a Powerful Country of Automobiles
The "Proposal for Formulating the Eleventh Five-Year Plan for National Economic and Social Development," adopted by the Fifth Plenary Session of the 16th CPC Central Committee, not only outlines China’s promising development prospects in the new century but also sets clear goals for all sectors of society. As a pillar industry of the national economy, the automotive industry aims to become a major and strong automobile power. Achieving this goal requires a significant focus on enhancing independent innovation. In this speech, I will share my personal insights on this important topic.
I. The Growth of China's Automotive Industry Through Independent Innovation
Under the leadership of the Communist Party, the Chinese automotive industry has grown from small beginnings to become a global leader in production and sales. By 2004, both production and sales exceeded five million units, and this year, they may rank third globally. Over more than 50 years of development, the industry has followed a path of independent innovation tailored to China’s conditions.
In the 1950s, the establishment of the first automobile factory marked the beginning of self-reliance in the industry. At the Third Plenary Session of the Eleventh Central Committee, economic construction became the priority, and the auto industry received support through key policies and projects, setting the stage for rapid growth. Reform and opening up brought joint ventures and cooperation, which helped the industry overcome challenges and expand globally, injecting vitality into the sector.
Policies based on the socialist market economy broke down barriers, allowing productivity and consumer demand to flourish. The industry expanded rapidly, becoming a pillar of the national economy and gradually evolving into a strategic industry. Through technology introduction, digestion, absorption, and improvement, the industry made significant progress in technology, management, and talent development, laying the foundation for future independent innovation. It began to reap the benefits of its own brands.
Looking back at the road of independent innovation, we deeply respect the contributions of generations of automakers and employees who have shaped the industry. Companies like FAW, Dongfeng, SAIC, GAC, BAIC, CNHTC, Chery, Changan, and Geely each have their unique paths and have contributed significantly to the development of the Chinese automotive industry.
FAW laid the foundation for the industry and led it for over 50 years. During reform and opening up, it focused on brand strategy, successfully establishing joint ventures that produced world-renowned products. It invested heavily in developing its own brands, with R&D costs reaching 3.67 billion yuan in 2004 alone.
Dongfeng Group symbolizes the strategic importance of the industry to national security. Its people built an unstoppable base for the industry and a team that would endure. Institutional innovations and breakthroughs in historical issues allowed Dongfeng to maintain its leading position.
SAIC seized opportunities during reform and opening up, growing into a mainstream enterprise. It pioneered a new model of joint venture innovation, proving that independent innovation is possible within such frameworks. SAIC was among the first to go abroad, exploring ways to acquire foreign companies and use overseas resources.
GAC emerged as a rising star, learning from past mistakes and using new ideas to break traditional habits, creating a new path for rapid development. Other companies like BAIC, CNHTC, Chery, Changan, and Geely also made valuable contributions, each adding its own value to the industry.
The development of the automotive industry is a vivid example of a path of independent innovation, reflecting the care of the party, the expectations of the people, and the hard work of all automakers. This path is characterized by starting from reality, combining subjective needs with objective conditions, integrating development and reform, and resolving technical and institutional challenges.
While there are still shortcomings, such as unclear steps in growth transformation and insufficient core technology innovation, these must be addressed during the “Eleventh Five-Year Plan†period. There is a wrong view equating independent innovation solely with technological advancement, which undermines the achievements of the industry. The central document clearly states that enhancing independent innovation capability is the strategic basis for science and technology development and industrial restructuring.
Another misconception is that the sole task of the auto industry is independent innovation. However, the Fifth Plenary Session outlined six key tasks: maintaining stable and rapid economic growth, accelerating the transformation of the growth model, improving independent innovation capabilities, promoting coordinated urban-rural development, strengthening a harmonious society, and deepening reform and opening up. These are common tasks for the entire country, including the auto industry.
Independent innovation must be driven by patriotism and pride, but also by a scientific approach rooted in truth. Innovation is not imitation or mere improvement; it involves qualitative leaps. It is the driving force behind societal progress and the essence of Marxism, Mao Zedong Thought, and Deng Xiaoping Theory.
Autonomy means understanding objective laws and serving specific purposes. It is essential for both economic and political reasons. Independent innovation combines innovation with autonomy, ensuring the nation’s independence and progress.
There are ongoing debates about the concept of "independent innovation." Left-wing interference often emphasizes complete self-reliance and ignores globalization, while right-wing interference underestimates China’s capacity for independent development and relies on foreign technology. Both views can mislead and hinder progress.
The scientific concept of development, emphasized in the proposal, highlights the importance of independent innovation. Leaders must align their perspectives with this concept to guide effective work.
China’s diverse regions and auto companies require flexible approaches to independent innovation. While principles are unified, methods should vary. Joint ventures, born from reform and opening up, have played a crucial role in developing the industry. They have enhanced technology, management, and talent, laying a solid foundation for future innovation.
Independent innovation does not exclude openness or integration. It includes technology transfer, digestion, and improvement. The State Council has emphasized the need for a balanced approach between technology and innovation.
Experts have analyzed various models of product development, highlighting the creative abilities of Chinese auto companies. These insights should be studied and applied.
The task of independent innovation in the automotive industry is critical. With many feasible solutions, the path ahead is wide. I am confident that China’s journey toward becoming an automobile power will be marked by success and innovation.
III. Current Tasks in Automotive Technological Innovation
The Fifth Plenary Session set a target: to form a group of enterprises with independent intellectual property rights, well-known brands, and strong international competitiveness. This is a challenging task requiring full effort and commitment.
To enhance independent innovation, we must focus on core technologies, ensure independent intellectual property, and accelerate the transformation of scientific achievements. Brand development is crucial, representing quality, recognition, and company image.
Independent development and innovation do not mean doing everything alone. They involve collaboration, outsourcing, and global partnerships. However, mastering core technologies remains vital to maintain autonomy.
Branding is a long-term process, requiring continuous innovation, quality improvement, and customer trust. It reflects comprehensive competitiveness, including technology, management, and marketing capabilities.
Creating strong brands requires the participation of all staff, encouraging innovation and creativity. The government, enterprises, research institutions, and universities must work together to build an effective innovation system.
There are challenges, such as misalignment in the innovation chain and lack of investment. However, with the construction of a national innovation system and continued reforms, these issues will be resolved.
In conclusion, the path of independent innovation is essential for China’s automotive industry. With determination, collaboration, and a focus on both technology and strategy, China is well on its way to becoming a true automobile power.