Behind The Shoes Made Of "Made In China", The Humble And Helpless World Factory

The Adidas closure incident has triggered several rounds of public opinion about China's pformation as a "world factory".

The newly released data on the actual use of foreign capital (FDI) in July did not continue to decline, and hit a new low of 2 years.

Beyond the data, the most intuitive is the outflow of foreign capital at the real economic level.

The advantages of the original "made in China" low-end labor intensive industries are losing. There will be more and more foreign manufacturing industries like Adidas.

Butterfly Effect: relocation of Chinese Enterprises

Not just overseas enterprises, even domestic

Due to increased cost pressures, clothing factories have also moved to Southeast Asia.

And many senior clothing circles in Guangzhou Liuhua business circle appealed that the brand advantage of regional clothing should be enhanced to resist the negative effects brought by the economic downturn.

"Now some colleagues have moved their factories to Southeast Asia.

The main reason is that the cost of labor there is much lower than that in China. For example, Vietnam, employing a garment worker only has a monthly salary of 500 yuan, and India has a minimum of 250 yuan / person / month. Bangladesh is about 300 yuan per person / month.

But in Guangzhou, hiring only one lathe operator pays a minimum of 2500 yuan to 3000 yuan a month, and some high-end clothing enterprises pay 4000 yuan monthly salary to workers.

"Zhuang Zequn, general manager of a clothing Limited company in Shantou, said.

"Some clothing manufacturers in Guangdong have gone through the migration process from Guangzhou to Jiangxi to Guangxi, and finally to Vietnam. At present, Vietnam's production cost is at least 30% lower than that of the domestic market.

"Insiders predict that garment factories in China will probably be less than 30% by 2015.

For Chinese clothing,

The challenge is not just the relocation of factories, but even more worrying is that some consumers are starting to pursue manufacturing in Southeast Asia.

A few days ago, many factory outlets in Guangzhou, many consumers were looking for sportswear and sports shoes produced by Nike from Vietnam, Indonesia and India.

"I think the quality is good and the price is still very cheap.

"This is the reason consumers give.

In fact, in addition to Adidas, its competitor Nike also closed the only shoe factory in Jiangsu, Taicang, Jiangsu in March 2009.

Meanwhile, by 2010, Vietnam's share of Nike shoes was 37%, which has exceeded 34% of the Chinese foundries.

With the gradual loss of the low cost advantage, China and the "world factory" seem to be fading away.

Zhang Youwen, director of the World Economic Research Institute of the Shanghai Academy of Social Sciences, said, "there are more and more cases like Adidas. The background is obvious, because the cost of labor in China's coastal areas is indeed rising, including the phenomenon of labor shortage. The foreign capital and Chinese enterprises are shifting to more cost dominant Southeast Asia and China's central and western regions.

This trend will continue, with great pressure on exports and processing trade.

"At the same time, he believes that the concept of" made in China "is relatively broad. Some of them are relatively sensitive to the cost sensitive and low-end industries that employ more labor force. Some of the more macroeconomic considerations, policies and industrial supporting capabilities are not necessarily the trend of migration.

On the whole, "made in China" can hardly be reversed by the appearance of these phenomena.

"The reasons for the Exodus are very complicated. Some want to acquire technology and others to gain market and resources.

Whether enterprises decide whether to invest is a comprehensive consideration. In addition to labor costs, it also includes raw material costs, market growth space, administrative environment, business environment and industrial ecological environment.

Professor Zhang Yabin, Dean of the school of economics and trade of Hunan University, thinks so.

Taking Adidas as an example, it can reduce the cost by turning factories around China, such as Vietnam and Kampuchea.

But one thing that can not be overlooked is the "re industrialization" plan currently being carried out by the United States.

The plan is trying to attract companies to return to Native American production.

It is reported that Adidas has built some new factories in the United States.

Abnormal profits of OEM Enterprises

A person in charge of a foreign-funded enterprise in Zhejiang told reporters that in the interest chain of "made in China", foreign businessmen took away most of the profits, and China got only a small processing fee.

A pair of 800 yuan.

The cost of materials is less than 100 yuan, the cost of the channel is less than 300 yuan, and the Nike company has to earn 400 yuan. China's production plants earn less than 20 yuan per pair.

Under such a deformed cost and profit structure, China can only solve the surplus labor force in the process of foundry, or produce its own brand in the subsequent original design and manufacture of Zhongshan Zhai, but as soon as manpower costs rise, foreign enterprises immediately turn around and leave.

Just like that, the more serious problem is that the industrial pollution brought by the role of the world factory threatens the quality of life of the Chinese people.

In response, Liang Congjie, a famous environmental expert, figuratively said that China became the world's kitchen and became the world's hogwash bucket when it became the world's factory.

We put the delicious food on the world table for foreigners to enjoy, but the garbage produced in the cooking process is left in our kitchen and left in our own swill bucket.

Low technology and low profits are the characteristics of "made in China" almost "born".

Many industries regard "low labor cost" as an advantage and pride themselves on the huge "output" value.

However, if we do not grasp the core technology and only pay the "made in China" of cheap labor force, its intrinsic gold content is not much.

While foreign capital began to withdraw, western countries put forward the concept of the third industrial revolution.

In view of this, our authoritative experts believe that no matter how the academic circles argue about the connotation and characteristics of the third industrial revolution and whether the third industrial revolution has arrived, it is certain that the current world economy is on the eve of another great revolution.

The third industrial revolution was put forward by Jamie Rafkin, an American scholar.

The third industrial revolution began in the last 20 years.

Since the 90s of last century, renewable energy has been greatly developed. The Internet has become a new medium for communication and communication. The combination of renewable energy and the Internet has provided a powerful infrastructure for the third industrial revolution.

In the future, people can connect to an energy Internet in their homes, offices and factories, just as we can share energy on the "energy Internet" today when we share information on the Internet.

Ping Xinqiao, Professor of economics at Peking University, pointed out clearly that "I am sure that the third industrial revolution existed.

"Ping Xinqiao believes that mankind has experienced two industrial revolutions so far.

The first was in nineteenth Century, the industrial revolution based on steam engine as energy, printing as information medium and coal burning train as infrastructure.

The second industrial revolution took place in twentieth Century. It used oil as energy source, electronic communication, telephone, radio and television as an intermediary for information exchange, and an industrial revolution based on fuel automobiles. It created mass consumption culture.

"Our automobile industry, real estate industry, and all kinds of" made in China "basically belong to the second industrial revolution or even the first industrial revolution.

"Ping Xinqiao said.

Because most industries in China are still at the low end of the global industrial chain, the level of science and technology of many enterprises is very low. Even though decision makers and some entrepreneurs have realized that the new technological flood is coming, some enterprises have already formulated plans to meet the new technological revolution, but many enterprises are not ready to meet the change.

Attracting "smart" enterprises to enter

Some developed cities in China, such as Suzhou, already have the advantages of independently selecting enterprises. They can selectively accept foreign capital enterprises, or even choose to "go out" of industries that are not in line with local development strategies.

China should continue to base itself on the "world factory" and pform China's manufacturing into China's "intelligence".

Improving productivity, quality and product quality stability is the main driving force for enterprises to turn to automation, especially high technology.

With the advent of the post industrial era, it is inevitable to upgrade the industry and enter a more high-end manufacturing industry.

At present, what is needed is to establish a patent information database at home and abroad and update it in time, and even pick up patents that have expired or will expire. Two, it is to carry out technical alliances with international organizations to share and invest in technology to avoid cultural conflicts. The three is to improve and break the technology at home and abroad and pform existing technologies into productive forces.

Low end industry chain still needs to be preserved

China must carry out industrial upgrading, but at the same time retain the low end industrial chain.

The industrial pfer of multinational companies generally follows the progressive process of first manufacturing, post service and then R & D centers.

The rise of labor costs is a double-edged sword. Labor costs are rising. On the one hand, foreign manufacturing industry is being evacuated from China. On the other hand, it means that Chinese incomes are increasing. This also means that China will have a larger market for foreign services.

China's population base is too large, so it is difficult to light up like Japan and Korea in the past and shift the low end labor force left by foreign capital to high-end.

The absorption of this part of the labour force should also be solved by small and medium-sized enterprises.

After the withdrawal of labor-intensive enterprises, will there be any gaps in the demand for employment and capital needs? Who will fill the gap in the future? In the interview, the reporters learned that while some foreign capital production lines were evacuated from China, another group of foreign-funded enterprises, which are mainly service industries, were actively entering China.

For example, FedEx and UPS two international express giants are waiting for the approval of the domestic express licence.

Similar to that of the express service industry, the financial services industry is also actively "localization".

The Ministry of Finance recently issued the approval of the Ministry of Finance on agreeing to set up KPMG Hua Zhen accounting firm (special general partnership), which means it became the first accounting firm to enter the pition period in the "four big".

This requires their employees to be "localized". Zhang Yaoliang, chief operating officer of the Ernst & amp; China audit service in Greater China, told the media that as of the end of 2011, more than 96% of China's mainland employees had been audited by the Ernst & amp; Huamin audit department.

In addition, the electronic information manufacturing industry with higher technical requirements has chosen to move the plant to the central and Western China instead of Southeast Asian countries.

In 2010, Chengdu and Chongqing welcomed the entry of international IT giants such as DELL, TI, HP and so on. These enterprises, as well as Foxconn, Ren Bao, weft and Quanta for Apple OEM, followed.

It is worth noting that GE, Oracle, Symantec and other multinational technology enterprises also set up R & D centers in Chengdu.