The hottest made in China needs to reshape its com

2022-09-23
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Made in China needs to reshape its comparative advantage

China's manufacturing industry is suffering from growing pains

the troubles come from two aspects. First, some high-end manufacturing industries are facing the trend of backflow under the background of American Reindustrialization strategy; Second, some low-end manufacturing industries have been transferred to Vietnam, Malaysia and other Southeast Asian countries due to China's rising labor costs, rising land prices and the need for transformation and upgrading

a typical phenomenon is that in Guangdong, Jiangsu, Shandong and other places, some Taiwan funded and Korean enterprises that originally valued cheap labor in China began to consider making labor and land cheaper. 3 Connector or eliminate the transfer of poor connector. Adidas announced that it would close its last self owned factory in Suzhou, China, in October this year. Some Taiwanese bosses began to organize groups to conduct investment and business investigations in Southeast Asia. Yiwu, the largest small commodity distribution base, has gradually changed to a semi-finished product distribution center. Merchants from Southeast Asian countries, BRICs countries and other developing countries transported semi-finished products from Yiwu back to China for assembly

the data of the Ministry of commerce also shows that the advantages of Chinese manufacturing have undergone subtle changes. Foreign direct investment (FDI) has been in negative growth in most months since November last year, of which FDI fell by 6.87% year-on-year in June, and only a temporary positive growth of 0.05% year-on-year in May

some of these phenomena are due to subjective factors of their own transformation and upgrading, while others are the result of external competition. Looking at these phenomena objectively and calmly analyzing the reasons are very necessary to reshape the comparative advantage of made in China

throughout more than 30 years of reform and opening up, the brilliance created by made in China is obvious to all. In this London Olympic Games, made in China can be said to be the leader. According to the official website of the Olympic Games, 65% of the 900 official Olympic souvenirs of the London Olympic Games are made in China. In 2010, China's manufacturing industry accounted for 19.8% of the total global manufacturing output value, surpassing 19.4% of the United States, becoming the world's largest manufacturing country

now, these advantages are facing embarrassment: the high-end still needs time to stand firm, and the middle and low-end are difficult to keep due to rising costs. The main reason is that the comparative advantage of China's manufacturing industry is disappearing: labor costs are rising rapidly, land prices are no longer cheap, tax incentives are also decreasing, and environmental protection pressure is increasing

some developed countries are facing the prominent problem of unemployment at home. They are taking this opportunity to bring back some manufacturing industries to boost their economies and increase employment. The governments of these countries will also use means including tax incentives and even punitive taxes. For example, in 2011, American auto giants Ford, general motors and Chrysler signed a four-year agreement with the United Auto Workers Union to move some production processes back to the United States. Previously, China was their first choice for building new factories

at the same time, some countries in Southeast Asia have also increased their efforts to attract investment, one of which is to poach some enterprises suitable for their own production conditions and levels from China, mainly including clothing and footwear, electronic products, etc

Vietnam's state news agency announced that the production scale of Nike sports shoes, a world-renowned sports brand, in Vietnam has exceeded that in China, becoming the world's largest producer of Nike shoes

although the phenomenon of relocation and outflow is not enough to shake the position of China's manufacturing industry in the world, these signs also remind us of the urgency and importance of the transformation and upgrading of China's manufacturing industry. The relocation of high-end manufacturing industry has not only taken away jobs and taxes in China, but also brought opportunities for China's manufacturing industry to learn and catch up to a certain extent

at the same time, in the face of the relocation of low-end manufacturing industry, if it is a part of enterprises with high pollution and high energy consumption, which are not in line with China's industrial development plan and current laws and regulations. 1. The influence caused by the elastic force of the driven needle spring or the friction resistance between the driven needle and the instigator plate: it is understandable to adjust the elastic force of the driven needle spring or the gap outflow between the driven needle and the instigator plate. However, there are still some enterprises that move out only because of high labor costs or high land prices. We should also rationally see that they do not blindly raise the minimum wage standards in various regions and hype up land prices according to the external market competition. Please call for details! With the arrival of the traditional peak season of steel demand, raising the establishment and operating costs of enterprises may be counterproductive

especially the regional characteristics of China's eastern, central and western regions can provide room for the industrial transformation and upgrading of China's manufacturing industry. At present, the comparative advantage of this stock is still quite obvious, and it should continue to be explored. Instead, it is not appropriate to have empty space in the middle of low-end manufacturing and transformation and upgrading

therefore, it is necessary for us to rebuild comparative advantages, including industrial chain advantages. China is not only a big manufacturing country, but also a big consumer country. Its market size is unmatched in the world. This mode of combining origin with market is obviously more advantageous than some Southeast Asian countries' lack of market size, at least saving a lot of costs in logistics

for an industry, what it needs to save is not only the cost of manpower and land, but also the advantages of a complete upstream and downstream industrial chain, especially the manufacturing of electronic products. The supply of raw materials, accessories, skilled workers and related equipment it needs must be considered by enterprises

secondly, technological innovation and labor force upgrading are also imperative. This is a long-term project, which requires long-term investment, including education and training. Only by constantly improving production technology, through scientific and technological innovation and patent layout, and relying on the strength of the brand to firmly grasp the initiative of production, this is a truly powerful comparative advantage

just like Apple's products are basically not made in the United States, but its American companies master the lifeline of the global Apple product industry chain. They are not directly engaged in manufacturing, but lead the development of manufacturing in this field through their advantages in the field of scientific and technological innovation. This is the direction of the upgrading and transformation of China's manufacturing industry

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