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    China'S Manufacturing &Nbsp At The Crossroads Faces Double Challenges.

    2012/4/12 10:23:00 11

    Made In ChinaLabor ShortageHigh-End Manufacturing Industry

    Coping with "dual challenges" in China: "new space" for reform


    In addition to "blocking the chase" abroad, China's manufacturing industry is also faced with dual challenges from inside: one is the pformation of some high-end manufacturing industries in China, and the other is the "escaping" real economy phenomenon of some private capital.


    In recent years, the high-end manufacturing enterprises such as Wanxiang Group, HUAWEI, Sany and so on have accelerated the pace of overseas distribution.

    Sany currently has 30 overseas subsidiaries, has built 15 logistics centers worldwide, and has set up R & D institutions in developed countries such as the United States, Germany and Japan.


    In this regard, some forum guests worry that the domestic high-end manufacturing industry will accelerate the trend of "outflow".


    However, the Sany executives said that China's large enterprises could turn overseas and avoid foreign trade barriers through localization.

    overseas market


    The participants said that overall, the opportunities and challenges brought about by the "outflow" of some high-end manufacturing industries in China.

    Of course, if China's reform stagnation, it may lead to high-end manufacturing industry "one side" by the developed countries "income pocket".


    Dong Mingzhu believes that the development environment of private manufacturing enterprises still needs to be optimized. At the institutional level of capital, policy and innovation system, the government should relax and "blood pfusion" for the private manufacturing industry in the mainland.


    Because of the problems in the development environment, in recent years, there has been a "virtual economy boom" and "weakening of the real economy" in some parts of the country, which deserve our vigilance.


    Su Bo said frankly that the root cause of this phenomenon is that China's manufacturing industry is in the low end of the global value chain, the large scale of backward production capacity, the difficulty of entering the monopoly industry, and the rising cost of production factors, resulting in low return on investment.


    Dealing with "homogeneous competition" in emerging countries: reconstructing "new comparative advantage"


    "Before the developed countries seize the high-end manufacturing industry, then there are emerging countries to undertake low-end manufacturing pfer."

    Chi Fulin said that the low cost comparative advantage that "made in China" has long relied on has been gradually weakened, and the new competitive advantage has not yet formed.


    According to the data provided by the forum, the average wage of manufacturing workers is about 1000 yuan per month, and India is about 600 yuan, while the eastern coast of China has reached 2500 yuan to 3000 yuan.


    "The comprehensive cost of China's manufacturing industry has surpassed that of some developing countries.

    This makes some manufacturing enterprises feel lost and worried.

    Su Bo said.


    Since 2011,

    Beijing

    The average wage of the 25 cities, including the Yangtze River Delta and the Pearl River Delta, increased by 22%.

    Some enterprises appeared "labor shortage", and a few multinational enterprises also showed signs of shifting out of China.


    A typical case is that China once was

    Nike

    The largest global manufacturing base has produced 40% of Nike shoes, but Vietnam now surpasses China to become Nike's largest production base.


    The participants thought that the traditional comparative advantage was difficult to continue, and how to win the initiative in the new round of competition in the international science and technology industry has become a new issue that must be solved in "made in China".


    "To build a new comparative advantage, first of all, we should improve the independent innovation ability of the industry."

    Dong Mingzhu, President of GREE electric company, said that OEM and OEM are the only way for enterprises to innovate independently. But after more than 10 years or decades, this is the only way to get rid of them.


    "A lot of attractive brands, such as apple mobile phones, are the first to buy happiness."

    Lin Zuoming used Apple products as an example to point out the development direction of China's manufacturing industry: cultivate two core elements, one is to have core technology, the other is to pay attention to the establishment of non replicability.


    Another "new comparative advantage" is to cultivate a new generation of industrial workers.

    "There is also a problem of pformation and upgrading of human capital."

    Su Bo said that the government and enterprises should actively develop vocational education and cultivate the new advantage of "made in China" based on human capital.

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