The conversion of old and new kinetic energy is a systematic major project involving various fields and aspects of the economy and society. In the process of implementing this project, it will inevitably be faced with the question of "catching what and how to catch it". This requires us to grasp the "four orientations": In the orientation of the industry, we should create new orientation and continue to innovate; In the orientation of the target, it is necessary to set high standards and work hard; In the orientation of work, we should not only implement the decision of leaders, but also highlight the advantages of local characteristics; In terms of policy measures, we must actively strive for support from leaders, also independently, actively strive to reform.

Economic development has entered the new normal, which has three main characteristics: Speed shifting, structural optimization, new and old kinetic energy conversion. The tasks we have to accomplish in this process are that the economic form is more advanced, the division of labor is more optimized, and the structure is more reasonable. Now the speed is slowing down, whether the structure can be optimized and the quality and efficiency can be improved, the key is to see whether the new and old kinetic energy conversion can be successful. The next five years will be an important period for Shandong's economic transformation and upgrading. If we want to achieve the goal of being at the forefront, we must firmly grasp the main line of supply-side structural reform, accelerate the conversion of old and new kinetic energy and regard it as a major project to guide economic development, promote "four modernizations" through "four new", cultivate and expand new kinetic energy, transform and upgrade old kinetic energy, promote the economy to grow at medium and high speeds, and promote the industry move towards the middle and high level. It is a key step for Shandong to implement the new development concept and build a strong province to grasp the "key point" of the old and new kinetic energy conversion. 

The conversion of old and new kinetic energy is a systematic major project involving various fields and aspects of the economy and society. We need to work together from multiple places, multiple points, and multiple faces. From the perspective of methodology, we must pay special attention to accurately grasping the four orientations and handling the four relationships. 

New and old kinetic energy conversion should accurately grasp the "four orientations".

In the orientation of industry, we should not only cultivate and develop new kinetic energy, but also transform and upgrade the traditional kinetic energy. We should have two-wheel drive and common development. 

To cultivate new kinetic energy for development. On the one hand, it is necessary to cultivate new industries to accelerate their rise and expand their capacity. This is the key to gaining new competitive advantages in the future; On the other hand, through the use of new technologies, new industries, new formats, and new models, the traditional industries will be promoted and revitalized. This is the basis for improving the current economic quality. Through the implementation of different policies, we will expand our strengths, make up for shortcomings, develop and strengthen the new economy, and transform and upgrade the traditional economy. We will promote industrial intelligence, intelligent industrialization, cross-border integration and high-end Brand. Focus on the top ten industries that represent Shandong's advantages and future development direction, we will form a pattern as soon as possible, which the new kinetic energy lead economic development, and truly achieve innovative development, sustainable development, and leading development.

In the orientation of the target, it is necessary to set high standards, work hard and combine learning with practice.

When Premier Li Keqiang inspected Shandong, he pointed out that the current situation of China's economic trend has changed from the "East-West gap" to the "North-South gap" with the Yellow River as the boundary. Shandong is located in the lower reaches of the Yellow River, an important area between the north and the south.If Shandong breaks a path in the conversion of  new and old kinetic energy in the whole country, it will play a key role in the change of the whole pattern of northern China. 

Shandong has created test area for new and old kinetic energy conversion , which is the first in the country. It has a demonstration role and undertakes a mission to drive the conversion of new and old kinetic energy in the northern region. Therefore, regardless of project planning or reform measures, we must uphold the world's vision, adhere to international standards, highlight the characteristics of Shandong, set goals, and constantly catch up. It is necessary to strengthen the international vision and open mind, combine the coordinated development of Beijing, Tianjin and Hebei, integrate the construction of the Belt and Road, and promote the conversion of new and old kinetic energy with a higher level.

In this process, we must closely integrate with the actual situation in Shandong, and we must have a clear understanding of the path, a clear path, and a firm attitude, combine learning with practice. For example, we must break through the inertia thinking, clearly understand the  method of project new and old kinetic energy conversion is project-based and engineering , and it is by no means the “Pursuing rapid economic growth" and "doing many projects" in the past. We must innovate the development path, strengthen scientific and technological innovation, reduce unit energy consumption, innovate resource allocation, and alleviate the constraints of environmental capacity and land indicators.

In the orientation of work, we should not only implement the decision of leaders, but also highlight the advantages of local characteristics. 

The central government asked Shandong to find a way for the conversion of the new and old energy and provide experience for the future development of the entire north of China. However, Shandong's eastern, central and western regions have different resource endowments, different industrial bases, and different regional characteristics. Therefore, in the process of new and old kinetic energy conversion, the development priorities and work measures of each region should be close to the actual situation of each region, and it is impossible to copy, and it is impossible to carry out new and repeated construction. We must clearly define the key points, highlight the advantages, and refine the positioning. Based on our own development basis, we will form a group of functional zones, gathering zones and industrial parks with their own characteristics.  

In terms of policy measures, we must actively strive for support from leaders, also focus on the inside, deepen institutional innovation, and stimulate motivation and vitality of the development.

In the process of creating a test area in Shandong, we need to learn from experience and actively seek policy support. It is necessary to try. But we must also play the role of internal factors, combine internal and external factors, and jointly promote development. In particular, all levels and departments must actively reform, break down institutional obstacles, and strive to make breakthroughs in important areas and key links. In particular, we must focus on strengthening the support of science and technology and talents, strengthening independent innovation of enterprises, and smoothly transforming achievements. We will give play to the main role of enterprises in the process of new and old kinetic energy conversion. We will continue to transform government functions, deepen reforms to streamline government administration, delegate more powers, and improve regulation and service. We will reduce the burden on business development and provide support for enterprises.

On this basis, it is necessary to handle the "four relationships" in promoting the conversion of new and old kinetic energy.

Handling long-term and short-term relations. New and old kinetic energy conversion is a new task, new requirement, and its implementation takes time. From the perspective of development trends, the conversion of new and old kinetic energy in the short term may bring pain, which is the stage that reform must undergo. But in the long run, the conversion of new and old kinetic energy provides new kinetic energy for the economic development, is the inevitable trend to achieve long-term economic development. The conversion of new and old kinetic energy is closely related to economic transformation and upgrading, social restructuring, ecological environmental protection, and regional coordinated development. Therefore, to promote the conversion of new and old kinetic energy, we must not only strengthen our convictions, prepare for long-term struggles but also improve the efficiency of conversion, seize the opportunities of reform, and promote the long-term healthy and sustainable development of Shandong's economy.

Handling the relationship between the government and the market. The key to promoting the the conversion of new and old kinetic energy is to make the government and the market harmonious. This requires us to properly handle the relationship between the government and the market, and further transform the government functions, deepen reforms to streamline government administration, delegate more powers, and improve regulation and service. First of all, we must streamline government administration, delegate more powers, clear the barriers for the conversion of new and old kinetic energy. We should reduce the power of the government, which is originally belonging to the market and return it to the market. Let the market play a decisive role in resource allocation. We should give full play to the initiative and creativity of the market players and enhance the endogenous driving force of economic development. Secondly, we must innovate management and protect the conversion of new and old kinetic energy. This does not mean that the government has completely withdrawn from the market. The government still has to manage things that belong to the government. The government should change management concepts, innovate management ideas, do top-level design, implement scientific macro-control and supervision, fully perform its functions, and give full play to the government's functions and advantages in the conversion of new and old kinetic energy. Thirdly, we should optimize service reform and help the conversion of new and old kinetic energy. The government must adapt to the needs of the conversion of old and new kinetic energy, and timely adjust relevant systems, policies, and regulations, promote innovation in systems, policies, and regulations, further improve the scientific, convenient, and flexible services, create a streamlined and efficient government affairs, create a good environment, and comprehensively improve the ability and level of services.

Handling the relationship between new and old kinetic energy conversion and stable economic growth. In 2012, Shandong's economic growth rate fell back to 9.8% for the first time, and fell to 7.6% in 2016. Although it is still higher than the national average, the magnitude has gradually decreased. Under the background of insufficient innovation drive and tight resource and environmental constraints, relying heavily on the old kinetic energy has been unable to achieve sustained and rapid economic growth. We must vigorously develop new industries through innovation and transform and upgrade traditional industries, accelerate the formation of a new power source of growth, to maintain rapid economic development. Although the current backward production capacity in Shandong can still generate certain taxes, the contribution to economic growth is unsustainable. We must make up our minds to break the dependence on the old kinetic energy, upgrade the traditional industrial technology, and upgrade the products. Otherwise, once the critical period is missed, Shandong will be caught in the mire of low-quality economic development for a long time. At the same time, we must do a good job of connecting new and old kinetic energy, and handle the relationship between traditional industries and emerging industries. The transformation and upgrading of Shandong's traditional industries and emerging industries are not antagonistic, both of them could be combined. We can't emphasize one aspect unilaterally and ignore the other side. While upgrading traditional industries, it is also urgent to support the rapid development of emerging industries.

Handling the relationship between the new and old kinetic energy conversion and social stability. In the period of economic transition, there are often many social contradictions. It is necessary to correctly handle the relationship the new and old kinetic energy conversion and the maintenance of social stability. First, paying attention to the issue of people's livelihood. In the process of eliminating backward production capacity, we will do a good job in the diversion and re-employment of unemployed workers, enhance the ability to create new jobs, and strengthen the employment support ability of key groups. Second, paying more attention to vulnerable groups and constantly improve the employment service system, social security system and social assistance system. Third, paying attention to risk assessment and prejudging social contradictions. Before the introduction of policies and major projects, we must do a good job in risk assessment, prevent and reduce the occurrence of contradictions from the source. We must pay close attention to potential financial risks such as non-performing asset risks, liquidity risks, and debt default risks, and firmly hold the bottom line of systemic financial risks.

In short, deepening supply-side reform and realizing the conversion of new and old kinetic energy is an inevitable requirement for promoting the construction of a strong economic and cultural province and ensuring that it continues to be at the forefront. We must further emancipate our minds, innovate ideas, take the new development concept as the guide, take being at the forefront as the goal, and take reform and innovation as the driving force, let The main line of the supply-side structural reform runs through all links and the whole process, accelerate the conversion of new and old kinetic energy, and strive to achieve innovation, sustainable development and leading development.

(Group leader: Tang Zhouyan, deputy leader: Yang Jinwei, members: Zhang Fenglian, Huang Jinhong, Cui Fengxiang, Luo Tao, Bi Weiyu, Li Lanyong, Peng Zongfeng, Zhu Xiaoshu, Sun Yanan, Liu Qing)