Industry 4.0 is China's historic opportunity

[Industry Focus in China's Instrumentation Network Industry] The concept of “Industry 4.0” has been rapidly resonated in the world since the concept of “Industry 4.0” was proposed by Germany and Germany. How the traditional manufacturing powerhouses move toward a true manufacturing powerhouse is a serious issue before China. China's Internet industry has become one of the world's leading companies. Industry 4.0 under the Internet background is undoubtedly a historical opportunity for China.

At the 6th China Business Leaders Forum, Cai Hongping, the chairman of Deutsche Bank Asia-Pacific Investment Banking, which is known as China’s “richest gardener”, asked him to explain China's opportunities and challenges in Industry 4.0.

What is Industry 4.0?

Cai Hongping: This is a big industrial wave that has come to us. "Industrie 4.0" was proposed by Germany at the 2012 Industrial Conference. It corresponds to the third industrial revolution that erupted in the United States. The basic concept is to connect consumers and production with a combination of intelligent Internet and automation. Become a new closed-loop system for intelligent production, or open system - this is a big concept.

For example, cloud computing, smart phones, etc., link Internet technology with intelligent production, which is very exciting. To be precise, it is intelligence, automation, personalization of consumption, and materialization. Everyone is a producer, and everyone is a consumer. At the same time, in this process, we achieved a big commercial democracy. There are many monopolies in traditional business. It is very clear that you will buy me and you will consume me. After the development of intelligent production, the home can also be designed and produced.

This is the third industrial revolution of mankind, that is, the 4.0 industrial age. It is difficult for producers and consumers to distinguish between inventors, producers, and consumers. This will cause all traditional industries to face a huge revolution, such as finance, why must they borrow? It can now be crowdfunded. Afterwards, all human behaviors, including daily production and electricity use, will be collected by big data. Therefore, the production of electrical appliances based on big data comes into being. For example, Germany has already started. When electricity is cheaper after six o'clock in the afternoon, it automatically becomes the use of ordinary city electricity. When the electricity price is high in the middle of the afternoon, it will use solar energy to generate electricity and can switch at any time.

In the future, transportation intelligence, financial intelligence, and intelligence in the cultural field will all disappear. Record companies, publishers, and television may all be gone.

All of this, all people are not prepared, but will certainly force you to accept. 4.0 is not just an industrial revolution but a revolution in the entire production and consumption of mankind.

In the process of being forced to accept, what needs to be fully prepared?

Cai Hongping: We, the nation, have to wake up. We are still doing traditional things because we lack a lot of things.

First, automation has not yet been realized. It is useless to realize that automation has not been implemented before. Of course, today's Huawei and BYD have already begun to use robots and use intelligence, because there is obviously no other choice. When our post-industrialization, internationalization, urbanization, and informationization are completed, the whole of China will Labor costs will be high and the key dividends will be gone.

Second, our "wrongful" labor laws have led to the general situation in which (companies) are less willing to invite many more employees. So I think that many of the big companies in China, including Hon Hai, Huawei, and Xiaomi, are all robots and robots, and that's what started.

The moment is the best opportunity for our nation. In particular, I would like to say that although the Chinese nation had invented many things in ancient times, it was the most backward in 400 years of modern history. We have missed the best opportunity for the Industrial Revolution.

This time, with the advent of Industry 4.0, our nation has gone through 30 years of development, reform and opening up, and it has just reached the best historical threshold. We can catch up with this 4.0. First, we have caught up with the Internet. Second, our industrialization will almost have to be realized; and we have ample capital for the development of our current capital market. This is the greatest historical asset and gift that the entire mankind has given to the Chinese nation. We must seize this opportunity.

What is missing from our nation for Industry 4.0?

Cai Hongping: There are three things missing. First, there is a lack of infinite loyalty to technology. We do not have the right attitude. We do not have the depth and love of a German for two generations and three generations to create a product. We are all short-term, not bad, because our social philosophy has been black cats and white cats for the past 30 years. This is correct, and it can be done economically. However, in the scientific field, there are no generations of human efforts. Rats cannot catch it. In Germany, including some countries and regions such as northern Switzerland and Austria, it is really a few years to do a product and it is very deep and deep, so that today's German miracle is possible. I think (to change this attitude) at least 20 to 30 years.

Second, there is no such ecology. Many Germans told me that you Chinese are engaged in technology for the sake of money, and we only make money after making technology. The angle is different.

The biggest problem is that our country’s legal system is not perfect. Protecting intellectual property is a very important point. Even if it is something invented in Shanghai, to other provinces to copy, you go to arrest him? Legal system construction is very important, if there is no protection of intellectual property rights, who will do this? Our nation needs a generation of engineers too much for its devotion. We need several generations of people. We call it "fools". We fight for a product and a technology. How amazing this nation is. We are willing to spend 1 million to buy a Swiss. Watch, why?

The development of the Internet today is a good thing. Online shopping is a good thing. It is called the consumer internet. But don't forget that our entire social development is not just a consumer internet, but also the production of the Internet, the energy Internet, and the transportation Internet. In fact, the consumer internet does not contribute to GDP, but it has a huge impact on employment. It has almost zero cost and uses China's non-reformable dividends, which are "non-reform dividends." The United States has only Amazon, not so much Taobao, and China's backward production system and logistics system are exploited at various levels. This gives Alibaba a great opportunity. It is revolutionary, directly hitting producers and consumers. It's a good thing to come down.

However, we Chinese people have a tendency, especially after the "80s" and "90s". We must pay special attention to do not indulge ourselves in buying cheap goods online. I would also like to see that on the Internet, there are big brands at home and abroad. Selling, selling only expensive, not selling cheap. Because of the expensive things, the sweat and wisdom of the inventors and producers are embodied. We can do all the popularization of the Chinese people. We can do it with eight or nine points. We have to cross the last 10% of the quality difference and we will have to spend 20 or even 100 years. So do not buy bargains. We must encourage the emergence of more sophisticated products under the Internet production, and then sell them at reasonable prices. Only when a nation dares to sell expensive things and respects the value of labor can there be hope.