What is the reason why China's economy has reached an annual growth rate of over 6.5%, despite the current global economic recession? The author will analyze the reasons with several personal experiences, which can serve as a guide to the overall situation.

In June 2017, a client of the author had a large order to place with our factory, with quantities of several hundred kK or more. The unit price was very low, almost cutting by more than 25% from the previous unit price. Our company calculated that there was not much profit, so we decided to give up the order and negotiations got stuck in Xinjiang. The customer shared their factory case with us, hoping for a successful cooperation and mutual growth! The customer said that their cooperation with Huawei is the same as ours now. If Huawei has a large order, the first thing they negotiate is to cut the price by 30% based on the original price. However, they still take the order back and try their best to improve the workflow and production efficiency. Sometimes they even develop automated machines to replace some manual labor. This kind of thinking has been accompanying their company's rapid growth and development. Let's compare last year with this year. In 2016, the factory completed a production value of 150 million yuan with 100 employees. In June of this year, the production value was already 160 million yuan, and the number of workers decreased by 15! What amazing growth! How important is technological innovation! The guest asked us to take a step back and proceed with the order based on our own situation! As the customer mentioned, these orders were not profitable at the beginning, but now our precision cold extrusion technology is gradually breaking through under the pressure of customer delivery time and quality. Previously, we could produce tens of thousands of pieces per day in a single mode, but now we can produce 250000 pieces per day in a fixed manner! The maintenance frequency of precision cold extrusion molds has increased from three days to 25 days, which has increased production efficiency by more than five times. Through the research and development of precision cold extrusion technology, these orders have become the main source of profit for the factory from not making money to now! It can be seen how important research and development innovation is, and how fast the growth rate of wealth created by research and development is!

Another case is the application of robots, which increases wealth growth. The author used to work on colored plastic trademarks and plastic crafts. In the past, employees would fill in each color one by one like embroidery. If one color was filled in incorrectly, the entire product would be scrapped, and each person could only produce about 1000 yuan in output value per day. But now one robot can produce 10000 yuan in output value per day, and there is almost no scrap! Plastic handicrafts from Southeast Asia have all attracted Dongguan to make! The innovation of production methods has led to a very rapid growth rate of wealth!

Jin Canrong, a professor of Fudan University, said: China's demographic dividend has passed, and there is still a wave of dividends in China, that is, the dividend of Chinese engineers. The annual training of 45 million engineers in Chinese universities will soon see results, because Chinese engineers are particularly innovative and have a strong desire to become rich!

Enterprise leaders should always have an innovative spirit in their minds. Our customers have taught us a lesson, and now that we have put it into practice, it is truly true!

EMAR hardware precision cold extrusion technology has achieved today's quality and output due to continuous innovation, and we have never stopped innovating!