Presently, the country encourages more social funds to enter the strategic emerging industries. Under policy incentive, on the one hand, some traditional manufacturing enterprises realize the transformation towards a new area through technical renovation, and some enterprises with abundant funds become a big supplier of new capacity through cross-boundary investment. On the other hand, some local governments provide financial support for local enterprises and fund them to grab the so-called anticipated opportunity.

However, some areas and industries still put new wine in old bottles. Previously, some new energy enterprises including Wuxi-based Suntech and Jiangxi-based Jiangxi-based LDK have gone bankrupt. Now, the overcapacity of new energy vehicles should never be neglected.

To develop strategic emerging industries, we must cultivate great technical breakthroughs and major development demands based on the new momentum, to promote the upgrading of industrial structure and the transformation of the mode of economic development, so as to fundamentally improve the quality of product supply. Thus, accurate policies for strategic emerging industries must be developed. First, supervise the technical qualification of new-comers and raise the threshold of market access to prevent speculators entering the market. Second, make a scientific and rational industrial layout across the country to give full play to the regulatory functions of the central government, and coordinate local governments to provide policy guidance and aid. Third, the financial institutions shall strictly master fund supports from the perspective of preventing and controlling systemic financial risks.

(By Wen Xueguo, Executive Vice President of Shanghai Academy and Vice President of Shanghai University)