Abstract: The weakening of the endowment advantage of low skilled labor force and the decline of foreign demand have gradually eliminated the development kinetic energy of China's traditional open economy, and the economic development has entered a period of transformation between old and new kinetic energy. The endowment advantages of China's highly skilled labor force are gradually emerging. The huge potential demand for high-quality products brought by the consumption upgrading of the domestic market and the existence of a relatively complete value chain of the information and communication industry provide a practical basis for the transformation of old and new kinetic energy. The direction of the transformation between old and new kinetic energy is to invest high skilled labor force to form international competitiveness in high-quality products, so as to solve the structural contradiction between production mode, factor endowment and supply and demand. To understand the transformation of new and old kinetic energy in essence, we can not regard it as the transformation of new and old industries. To promote the transformation of old and new kinetic energy, we should pay attention to the shaping of individual competitiveness of enterprises, the unique role played by small and medium-sized enterprises in innovation, and the formation of international competitiveness of enterprises through further integration into economic globalization and integration of global advantageous elements.
