After Premier Li Keqiang referred to the spirit of craftsmanship in this year’s government work report, the concept was recognized an important component of China’s ongoing supply-side reform. Lack of craftsmanship is considered the biggest obstacle to developing a knowledge economy and upgrading industrial links in the country.

Without the spirit of craftsmanship, a country is incapable of developing world-renowned brands. The key to transforming and upgrading the manufacturing industry is to foster a spirit of craftsmanship characterized by constantly striving for perfection and respecting consumer sovereignty.

Some people say China lacks a regime of craftsmanship rather than the spirit. However, a regime is something formed inside an economic and social institution during its long-term operation. In my opinion, the deepest reason is the lack of culture supporting the spirit. Therefore, building such a cultural system is necessary to transform from a big manufacturer into a strong one.

To be specific, the system consists of five aspects. The first one is material culture to support the spirit. As China becomes a moderately prosperous society, rich supply and fierce competition will automatically prompt enterprises to pursue higher quality and create influential brands. Therefore, it is crucial to accelerate market-oriented reform, creating a sound environment for competition. Administrative monopoly stifles the spirit of craftsmanship.

The second is to encourage consumers to develop more discriminating tastes. Michael Porter, one of the world’s most influential thinkers on management and competitiveness, pointed out that discriminating consumers are the external force that impels Japanese manufacturers to improve quality of products. Therefore, casual consumption behavior that disregards quality will actually take away the incentive for manufacturers to develop a spirit of craftsmanship.

The third is the management. China’s manufacturers are adroit at skirting established procedures and regulations. This attitude toward discipline and procedures can’t produce products with high quality. Therefore, the management of enterprises should properly handle the relationship between flexibility and discipline.

The fourth is the institutional culture. The development of the spirit and regime of craftsmanship is largely determined by the authorities’ management standards and methods of the market. In market disorder, no one will care about refining their products. Therefore, the authorities must put strict supervision on market participants, punish those who make fake commodities and infringe upon intellectual property rights, and unite enterprises and society to form a mechanism in this regard.

The last one is the values of craftsmanship. The values of craftsmanship are a high-level cultural form. The encouragement of annual salary and stock options for technicians by the government in reforming the talent management system is one important measure to lift the status of workers in society. Enhancing the social status of workers is the starting point of reviving the real economy, curbing the impetuous atmosphere in the society, and respecting techniques.

If the spirit of craftsmanship can become the common pursuit and principle of conduct among managers and workers, our companies can become invincible in global competition. This is the moment when our transnational enterprises stand tall in the world and our nation realizes its rejuvenation.

Liu Zhibiao is a professor from Nanjing University.