If innovation can be compared to an apple, the latest bite taken by Shenyang Machine Tool Group, once the world’s largest machine tool seller, was not the sweetest. Although its self-developed smart factory machinery tools have created new demand, a lot more has to be done to steer the group towards a path of quality and sustainable development in the new era. On the wall of one of the group’s conference halls hangs a calligraphy showing four Chinese characters “da gan kuai shang”, which means make all-out efforts and launch new projects as fast as possible. The company has reported losses for more than two years. It forecast that the loss in the first nine months of this year will be between 750 million and 800 million yuan, compared with a loss of 798 million yuan for the same period of 2016. The losses in recent years came as China’s economic growth slowed to medium-high rates. Gai Liya, manager of a production line of the group’s Shenzhen-listed branch, Shenyang Machine Tool Group said “Technological innovation should be a lasting process. We still need to make constant experiments and huge inputs in the future”.
The Chinese economy will be able to steer clear of rapid declines of GDP growth during the new development era, a prominent economist has said, but ruling out the possibility of an immediate rebound. “After getting rid of the downward trend, the growth will level out in the future, rather than accelerating quickly”, Liu Yuanchun, vice president of Renmin University of China, said when addressing a forum. The economy showed strong resilience in the first three quarters as reforms created fresh momentum, with GDP expansion holding steady at 6.9 percent year on year. Services and consumption played a greater role in driving growth, and high- end manufacturing and IT sector witnessed booming increases. His remarks came after a report to the 19th National Congress of the Communist Party of China said the economy is in “the new era, a pivotal period for transforming the growth model, improving economic structure, and fostering new drivers of growth”. China has been transitioning from a phase of rapid growth to a stage of high-quality development, according to the report. Liu said that risks in the economy would be eased in the new era but attention should remain. “The downward cycle in the financial sector will likely be more complicated than predictions, which will lead to a very different deleveraging process compared with the European and U.S. market”, Liu said. “It is not the time to sound the all clear yet”.