Xu Guanhua, former minister of the Ministry of Science and Technology and academician at the Chinese Academy of Sciences, warned of the low added value trap in the development of China's emerging industries during the "2013 China's Strategic Emerging Industries Development Forum" held in Beijing on May 22.

Xu Guanhua, former minister of the Ministry of Science and Technology and academician at the Chinese Academy of Sciences, warned of the low added value trap in the development of China's emerging industries. [Su Xiangdong/China.org.cn]

In his speech entitled "Problems and Countermeasures in Developing China's Strategic Emerging Industries," Xu pointed out that China's emerging industries find themselves trapped in the net of low added value, whereas they should in fact have yielded high profits. Several of China's high-tech enterprises still remain on the lower end of the value chain and continue to develop at the cost of both resources and environment, Xu observed.

Xu explained that these problems are rooted in a lack of sufficient strategic foresight, inadequate support for cutting-edge high technologies and a lack of macro layout regarding industrialization and the overall industrial chain itself.

To address these problems, Xu suggested that first of all, the government should step up its efforts in transforming its function. Governments at all levels should adjust their roles from one of direct project management to one of creating a favorable environment for the development of emerging industries as well as formulating public policies that will benefit those industries.

Xu also suggested that a system combining science, technology and economy, based on the market economy, should be fully established. Reforms in the scientific and technological system, as well as service industries that help foster innovation should be promoted and developed.

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