This paper first analyzes the embarrassing situation faced by traditional industries from the two dimensions of local government level and enterprise level. Then, through the example of the successful transformation and upgrading of the color steel plate industry in Zhenze Town, Wujiang, Suzhou through the cluster development, it summarizes the practices and effects of the government, enterprises, policies and society in this process. Finally, three enlightenments of Zhenze's experience to the transformation and upgrading of traditional industries in China are summarized:
1. The upgrading and transformation of traditional industries is crucial to the high-quality and coordinated development of the whole manufacturing industry
2. The path of small- and medium-sized enterprise cluster development in Zhenze will provide an implementable plan for the national local leading industrial policy to encourage the transformation and upgrading of traditional industries
3. In the process of transformation and upgrading of traditional industries, we should pay attention to adhering to the boundary between the government and enterprises and give full play to their subjective initiative
In short, the development of traditional industry clusters needs to start from the goal of local transformation and upgrading. The government should plan industrial policies, coordinate industrial factor integration and business environment construction. Enterprises should improve efficiency and gain scale benefits through cluster development. Both sides should explore the mode of government enterprise cooperation to achieve the win-win effect of economic and social benefits.
