How the 19th CPC National Congress report guides development of tire industry

The 19th National Congress of the Communist Party of China was held Oct. 18 in Beijing.

On behalf of the 18th Central Committee of the CPC, Chinese president Xi Jinping delivered a report to the congress.

Tireworld.com.cn discovered that a few pieces in the report are instructive for the development of China’s tire industry.

Supporting traditional industrial upgrade

Tire industry is a traditional one. Currently, the entire industry is in a crucial period of transformation, upgrade and de-capacity.

Xi indicates that China’s economy has been transitioning from a phase of rapid growth to a stage of high-quality development. This is a pivotal stage for transforming our growth model, improving our economic structure, and fostering new drivers of growth.

In developing a modernized economy, we must focus on the real economy, and give priority to improving the quality of the supply system.

We should support the transformation and upgrade of traditional industries, insist in de-capacity, de-stocking, deleverage, lowering costs and improving weak links, improve resource allocation, improve the supply of quality growth, and realize dynamic balance of supply and demand.

Xi says to stimulate and protect the spirit of entrepreneurship, and encourage more social entities to devote themselves to innovation and entrepreneurship.

Finance serves real economy

Xi stresses in the report that reform of the investment and financing systems will also be deepened to enable investment to play a crucial role in improving the supply structure.

Xi says to deepen reform of the financial system, make the financial sector better serve the real economy, increase the share of direct financing, and boost healthy development of a multi-tiered capital market.

Tire industry is a capital-intensive industry. Financing has been a significant issue besetting the development of enterprises, in particular the private enterprises.

Belt and Road Initiative construction

With the help of the Belt and Road Initiative, Chinese tire producers made significant achievement in developing international markets.

Xi calls upon the country to pursue the Belt and Road Initiative as a priority, stresses the importance of both of “bringing in” and “going global”, appreciate the principles of co-consultation, co-construction and co-sharing, enhance open cooperation of innovation capacity, and make new ground in opening China further through links running eastward and westward, across land and over sea.

Xi calls for expanding foreign trade, developing new models and new forms of trade, and turning China into a trader of quality.

He also calls for developing new ways of making outbound investments, promoting international cooperation on production capacity, forming globally-oriented networks of trade, investment and financing, production, and services, and building up strengths for international economic cooperation and competition.

Countries and regions related to the Belt and Road Initiative have become key areas for the export and investment of China’s tire industry.