Made In China: Survival With Industrial Upgrading

The international competitiveness of China's manufacturing has not been weakened because of the increase in price. In 2008, as a node of new year's day, many Chinese shoemaking, textile and toy enterprises have used the 2007 order. At the same time, the new labor contract law was formally implemented in January 1st, plus the cost pressures of labor, land, raw materials and so on. The Pearl River Delta industrial base once again faced a choice: whether it was closed or not?

Moving or moving, or sticking to it?

This is a problem.

However, China's manufacturing industry has found a way to digest cost pressures through industrial gradient pfer and upgrading product grades, so as to obtain capital for its continued existence and development.

In 2008, China's foreign trade will grow by about 15%, slightly slower than the growth rate in 2007.

China's foreign trade situation report (hereinafter referred to as the "report") issued by the Ministry of commerce is preliminarily estimated.

According to the data released by the General Administration of Customs on 11, in 2007, China's annual foreign trade import and export value amounted to 21738 billion US dollars, up 23.5% over the previous year (the same below).

Since China formally joined the world trade organization, the growth rate of China's foreign trade has been maintained at more than 20% for 6 consecutive years, and the scale of import and export has increased by two times.

Li Yushi, vice president of the international trade and Economic Cooperation Research Institute of the Ministry of Commerce, who has been involved in the accelerated period of "survival of the fittest", said in an interview with the first financial daily that although the speed of China's foreign trade may slow down this year, the overall growth trend is positive. The export growth mode is experiencing pformation from quantity to quality. This is evident from the price rise of many export commodities in China last year.

This year, manufacturing costs or further climb, the relevant enterprises will enter the "survival of the fittest" acceleration period, in the process may have to pay some costs, some enterprises collapse is inevitable.

Li Yushi analysis pointed out that there are some uncertainties and unstable factors in the foreign trade this year, and the world economic and trade growth is expected to slow down, especially in the United States.

Under the influence of the subprime mortgage crisis, the US economic growth rate may further slow down in 2008, and to a certain extent, it will drag down global economic growth.

In addition, various forms of trade friction on the global scale are on the rise. The RMB may continue to rise steadily, and the prices of international energy, raw materials and agricultural products (35.50,0.00,0.00%, stock bar) continue to rise. Last year, the export tax rebate, processing trade and other policy adjustments and the new labor contract law, which were implemented in January 1st this year, combined with "two taxes combination", will all affect the manufacturing of China this year.

"In terms of policy macro regulation and control, taking into account the smooth pition and pressure on enterprises, there is no significant policy adjustment in export this year.

Different industries and different enterprises are also different. It is difficult to judge which factor is the biggest impact on enterprises.

However, most export enterprises are affected by the appreciation of the renminbi, and the number of critical points that enterprises can bear depends on the ability of enterprises to adjust themselves.

Li Yushi said.

The increase in prices has been increasing since July 2005, and the appreciation of the renminbi has risen by about 12%.

Wang Qianjin, general manager of the first textile network, told reporters that RMB appreciation of about 10% is a critical point for the labor intensive textile industry.

A number of garment factories collapsed last year due to various factors, and will continue to spread to this year.

Large enterprises are relatively strong in compression capability. They can pfer some of their rising costs by improving their quality and design to raise their customers' prices, or reduce production costs by strengthening management and pferring production bases, while small businesses are relatively weak in coping ability, and may fail because they can not digest the rising costs.

In recent months, a number of factories such as shoe factories, toy factories and garment factories have been closed in Guangdong and other places.

Li Peng, secretary-general of the footwear association of Asia, believes that the failure of some shoe factories is only an internal adjustment of China's footwear industry, which does not mean that China's manufacturing competitiveness has been weakened.

Overseas buyers may pfer part of their low price orders to neighboring countries, which will be a fatal blow to Chinese enterprises who rely solely on low price competition, but there will not be large-scale pfer of international orders.

China's footwear industry is still competitive in the next ten years, and is far ahead of India, Vietnam and other countries in terms of industry matching and worker proficiency.

The latest figures released by the US official show that the prices of goods imported from China increased by 0.1% in December and 2.4% in 2007.

According to Chinese customs statistics, the global unit price of Chinese clothing exports in the past 1~10 months was $3.23, an increase of 14% over the previous year, and the average unit price of global footwear exports was 2.92 US dollars / double or kilogram, an increase of 5.8% over the same period last year, especially for exports to the EU. The average price of leather shoes involving anti-dumping is up to 7.41 US dollars / double, a 16.6% increase over the same period last year.

Toys and other products have risen to varying degrees.

China's foreign trade is in the period of structural adjustment and industrial pformation and upgrading. As the State encourages the export of electromechanical products and high-tech products, it has maintained a relatively rapid growth, and the momentum of excessive energy consumption, high pollution and resource goods exports has been suppressed.

The traditional export commodities such as textiles, clothing, footwear, toys and so on maintained a steady growth. After that, enterprises are launching a fierce battle to promote industrial upgrading.

"If we want to be competitive in the international market and cross international trade barriers, the best way is to innovate. Countries such as Europe and the United States are not defying their own blank technologies and products."

Sun Wei, general manager of Shenzhen Evoc Intelligent Technology Company Limited, told reporters.