China's manufacturing competitiveness index has been improving for seven consecutive years. According to the State General Administration for Quality Supervision and Inspection and Quarantine (AQSIQ) and the National Statistics Bureau, China's manufacturing competitiveness index reached 78.9 percent, an increase of 0.64 percent from 2004.

This is the result of a survey of over 250,000 enterprises in 29 industries including telecommunications, machinery, petrochemical, textile, medicine, food and press. Of those, seven industries, including electronic telecommunication, general equipment, instruments and meters, special equipment, ferrous and non-ferrous metals and electric machinery, have reached a competitiveness index of 80 percent. Telecommunications, computers and other electronic equipment rank highest, their competitiveness index reaching 83.72 percent.

Jiangsu and Fujian province as well as Shanghai city are the best of China's 11 most competitive provinces, out of a total 31 provinces, municipalities and autonomous regions.

Director-General of AQSIQ, Li Changjiang says the competitive index reflects the products' current quality and future potential. China's highest competitiveness index is currently in technology and capital, reaching 80 percent or more. This will relax environmental pressure and promote energy conservation and the building of an environmentally friendly society.

Qiu Xiaohua, Director-General of the National Statistics Bureau points out that the statistics also show the imbalance of economic development in China. Within industries, the difference in competitive index between highly competitive enterprises and less competitive ones is about 11.51 percent. Traditional labor-intensive enterprises have a much lower competitive index. In terms of region, east China leads, followed by central and then western China.

Qiu Xiaohua also pointed out the imbalance is becoming smaller and smaller. According to a four year trial survey, the competitiveness index in east, central and west China has increased by 2.56 percent, 3.26 percent and 3.94 percent, indicating that west China has improved significantly and that the gap between the regions is narrowing.

Li Changjiang said that there is still a gap between China and developed countries. About 80 percent of developed countries' enterprises have adopted international quality standard while in China only 46.28 percent of enterprises abide by international standards.

Meanwhile, the quality of products produced by small enterprises is still not high; only 55 percent meet quality standards.

Qiu Xiaohua says China is a huge manufacturing power, but a small creative country. The output of China's manufacturing industry is the third largest in the world. But only a small proportion of enterprises have their own core technology and famous brand. The focus in the future will be on realizing the change from manufacturing power to creative power.

China will conduct surveys to compile an individual happiness index, a comprehensive human development index, a regional innovation index and a social harmony index in order to meet the goals of harmonious economic and social development.

By People's Daily Online