How to leverage the advantages of a super large market to enhance the resilience of industrial and supply chains

Feb 26, 2025

How to leverage the advantages of a super large market to enhance the resilience of industrial and supply chains

 

 

Enhancing the resilience of industrial and supply chains is an important guarantee for maintaining national economic security and promoting high-quality economic development. In recent years, the competitiveness of China's industrial and supply chains has been continuously enhanced, and its international status has continued to rise. However, due to unfavorable factors such as anti globalization trends, geopolitical conflicts, and technological blockades, the situation of China's key core technologies being "controlled by others" has not fundamentally changed, and the fragility and risk of the industrial and supply chains still exist.

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General Secretary Xi Jinping pointed out that "China has the world's most complete industrial system and the largest potential domestic demand market. We must effectively improve the resilience and safety level of the industrial chain and supply chain, and seize the opportunity to make up for shortcomings and forge strengths." This important statement has pointed out the direction and provided guidance for China to leverage the advantages of a super large market and comprehensively enhance the resilience of the industrial chain and supply chain.

 

The advantage of a super large market in enhancing the resilience of industrial and supply chains is mainly reflected in three aspects. Firstly, the technological innovation effect of the advantage of a super large market can promote high-level technological self-reliance and self strengthening, and drive "chain supplementation". The larger the market size, the higher the expected returns of high-level technological innovation, which will motivate innovation entities to increase research and development investment, accelerate the realization of independent and controllable key core technologies, and solve the "bottleneck" problems in the industrial and supply chains.

 

The larger the market size, the more diverse the application scenarios and ample opportunities for trial and error of high-level technological innovation. This not only helps to share research and development costs and form cost advantages, but also reduces the risks faced by technological innovation. The larger the market size, the stronger the ability to attract global innovation resources into the domestic market, enhance the linkage effect of innovation resources between domestic and international markets, and promote high-level technological innovation.

 

Secondly, the economies of scale effect of the advantage of a super large market can enhance the core competitiveness of the industrial chain and supply chain, and promote "strong chain". In modern economy, economies of scale are widely present. A super large scale market helps to fully utilize economies of scale to improve production efficiency, reduce production costs, and strengthen the core competitiveness of industrial and supply chains. Under the influence of economies of scale, super large scale markets will also promote the development of industrial clusters, enhance the synergy between industrial and supply chains, improve the efficiency of supply and demand matching in industrial and supply chains, further enhance China's leading position in advantageous industries, and improve the resilience of industrial and supply chains.

 

Thirdly, the complete effect of the industrial system with the advantage of a super large scale market can enhance the stability of the industrial chain and supply chain, supporting "chain stability". The larger the market size, the more conducive it is to accommodating a complete industrial system. Relying on its own large-scale market, China has become the only country in the world to have all industrial categories in the United Nations Industrial Classification. A complete industrial system is a prerequisite for having strong risk resistance and industrial adjustment capabilities. It is the internal stabilizer of the industrial chain and supply chain, enabling domestic industries to adopt emergency measures, quickly mobilize and integrate various factor resources, and maximize the normal operation of the industrial chain and supply chain during special periods.

 

At present, the advantage of China's super large market has played a prominent supporting role in enhancing the resilience of industrial and supply chains. However, in order to fully leverage this advantage, more support measures are indispensable.

 

Firstly, further expand domestic demand. Improve the income distribution system, expand the proportion of middle-income groups, increase the income of low-income groups, accelerate the formation of an olive shaped social structure, and expand the size of the consumer market. Actively developing service consumption, accelerating the cultivation of new types of consumption, vigorously advocating green consumption and healthy consumption, and promoting the optimization and upgrading of consumption structure.

 

Promote the improvement of quality and efficiency of government investment projects, and stimulate the investment vitality of private enterprises through government investment and policy guidance, effectively increase the scale of investment in the whole society, and enhance economies of scale. Resolutely prevent and eliminate redundant construction and low-level investment, establish and improve the mechanism for releasing industrial investment information and interpreting policies, increase investment in projects that fill gaps and major national projects, further optimize investment structure, consolidate the advantages of super large scale markets, and promote high-level technological innovation.

 

Secondly, promote the construction of a modern circulation system. Improve the circulation infrastructure such as highways, railways, bridges, ports, airports, etc., build a national backbone logistics facility network, create a "channel+hub+network" logistics operation system, expand the coverage of the logistics network, and improve the operational efficiency of the logistics network. Promote the construction of the "Four Good Rural Roads", smooth the urban-rural transportation network, build a three-level express logistics network at the county, town, and village levels, thoroughly solve the "last mile" problem of rural logistics, and further activate the rural market. Accelerate the intelligent upgrading of transportation infrastructure, strengthen the application of intelligent transportation equipment, promote the intelligence of logistics facilities and equipment, improve logistics information interconnection, accelerate the digital transformation of modern circulation system, reduce circulation costs, and improve circulation efficiency.

 

Thirdly, accelerate the construction of a unified national market. Strictly implement the "National One List" management model, eliminate regional segmentation, and enhance the economies of scale brought about by the advantages of a super large market. Deepen the market-oriented reform of factors, minimize improper administrative intervention in the formation of factor prices, comprehensively improve the efficiency of factor allocation, consolidate the advantages of super large scale markets, and strengthen the competitiveness of industrial and supply chains.

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Establish a sound modern property rights system with clear ownership, clear rights and responsibilities, strict protection, and smooth circulation, strengthen the protection of intellectual property and data element property rights, better play the decisive role of the market in allocating new elements, and stimulate innovation and technological progress.

 

To create a market-oriented, rule of law, and international business environment, improve the admission and operation system, deepen the reform of "separation of licenses and permits" and "reduction of licenses after obtaining licenses", promote the "one thing" reform of enterprise establishment, stimulate the vitality of various market entities, consolidate the advantages of super large scale markets, enhance the diversity and completeness of the industrial system, and improve its attractiveness to global innovation resources.

 

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