In The Post Labor Era, Chinese Shoe Makers Are Facing Difficulties.

"Made in China" has been a synonym for good value for money and good value for money in the past decades, but now it is gradually fading its dazzling light.

According to the latest data released by the National Bureau of statistics, from 1 to July this year, the industrial enterprises above Designated Size achieved a profit of 26785 billion yuan, down 2.7% from the same period last year, and realized in July.

366 billion 800 million yuan, down 5.4% compared with the same period last year.

Of the 41 industrial sectors, 15 industries fell year-on-year, most of which were manufacturing industries.

The low cost advantage is no longer a big reduction in production and shutdown in manufacturing industries in Southern Fujian and Zhejiang.

Yesterday, Gansu financial commentator Ye Tan, Feng Zhengzhou, President of Shanghai Association of export commodities enterprises, Mr. Lou Zhongping, chairman of Softbank Sai Fu, and Lou Zhongping, chairman of Shuang Tong Commodity Co., Ltd., talked about "made in China".

Ye Tan: now it is said that China's manufacturing industry is very bad. Is it true?

Feng Zhengzhou: I have been in this industry for many years. China's foreign trade has been developing rapidly in the past 30 years.

Last year, China's imports and exports were US $3 trillion and 600 billion, and Shanghai was US $860 billion. China has been exporting the world for 3 consecutive years.

Economic law is fluctuation, ups and downs, I feel no problem.

Of course, the problem is rather severe now, and the growth rate of foreign trade has slowed down considerably this year.

From 1 to June, the total foreign trade grew by 8% and exports increased by 1% in July, the lowest growth rate since 2008.

So now it is worse than the second half of 2008.

Recently, the industry has come out again.

News of ending cooperation with 300 Chinese foundries.

Publicly available data show that these businesses have nearly 300 thousand employees.

Min Heng Industrial Co., Ltd. is Adidas's first foundry enterprise in Shanghai. It was founded in 1997 and has 600~700 staff. Its garment factory has 100% capacity attached to Adidas.

Before 2010, the factory's profit was 8%~10%, but the profit was almost zero for two years.

Chen Zhihuang, general manager of Min Heng company, said Adidas has proposed termination of cooperation in April this year.

Negotiations are still under negotiation, if the termination of cooperation will have a 30%~40% impact on the company's overall performance.

Why are manufacturing enterprises "fleeing" China? What are the underlying causes?

"The average wage of Vietnam's manufacturing sector is about 1000 yuan (RMB) per month," says Zijin Mountain, Vice Minister of Commerce of China. "India is about 600 yuan, while China's eastern coast is about 2500 yuan to 3000 yuan. China's labor cost has been much higher than that of neighboring countries."

The people's Bank of Nantes recently released a report predicting that China's labor costs will catch up with the US, Europe and Japan in the next few years.

China, which has long held the title of "world factory", can no longer continue to rely on cheap labor costs to attract investment after the demographic dividend has disappeared.

The Chinese foundry enterprises, which are entering the post labor era, are worried ahead.

Lou Zhongping: manufacturing is like grazing, where there is plenty of water and grass.

The first wave from Europe and America to Japan, Korea and Taiwan of China; the second wave to mainland China, Indonesia and Malaysia; the third wave may go to Burma, Vietnam and Kampuchea, experiencing such a process.

Lu Hao: our manufacturing industry is basically extensive. Serious capacity is greater than demand. Adjustment is normal.

Just now, Mr. Feng said that the month of July's export decline was so severe that we thought it was abnormal.

In fact, we overestimate our processing ability and creativity, and create the current situation that we are completely competitive by processing speed.

It should be said that the fragility of China's processing enterprises is abnormal, but the adjustment is normal.

The adjustment of China's manufacturing industry will bring up some advantageous enterprises. It will improve technology by means of the development of ODM (original design manufacturer) and OBM.

The only hidden concern in the future is that China's employment rate and production capacity do not match.

According to the latest research report of Boston Consulting Group, 15% of us enterprises will be repatried from China to the United States in the next five years, and the most likely industries to return to the US include pportation, electronic equipment and equipment, furniture, plastic and rubber products, machinery, metal products and computers.

These categories of goods account for the United States from China.

Nearly 70% of the commodity accounts for about 2 trillion US consumers annually.

On the other hand, American investment bank expert Refs ned predicted that more American enterprises or Chinese enterprises might move factories from China to other cheaper areas in the future, such as Southeast Asia.

Wang Chaoyong, a famous investor, pointed out on micro-blog that the view of Silicon Valley entrepreneurs on the return of manufacturing industry is that China's labor cost has not had much advantages, the cost of industrial workers has risen rapidly, engineers and white-collar wages and benefits have risen to about 6 of the US, and the per capita efficiency is not as good as that of the United States.

ASEAN and India do not have an ideal business environment.

{page_break}

Ye Tan: Well, I'd like to hear from you. Where is the biggest problem in China's manufacturing industry now?

Lou Zhong Ping: made in China has reached this stage today. It must be promoted. It must be pformed and must be innovated.

But objectively speaking, the cost of Chinese enterprises is particularly high, and labor costs increase at an annual rate of 20%~30%.

Feng Zhengzhou: I have been dealing with companies for many years, and they complain that the biggest problem is bad money.

Today, the boss is going to sleep on the floor tomorrow; he is often hurt in doing business and doing business; the boss boss is always in the face; the managing director of the general manager is always being repaired, why not?

There are many reasons why there is no money. Of course, the building has always said a very important thing, that is, the tax on Chinese manufacturing industry is too high.

Income tax to 25%, in the world, this tax rate is very high.

I think this is the biggest problem in the capital chain of China's manufacturing industry.

Lu Hao: whether labor intensive or technology intensive, I think the "four no enterprise" of Chinese manufacturing industry will have no future.

There is no technological core of its own, no market access brand, no self processing industry, and no unique production elements.

The so called unique meaning refers to the productive capacity that no one else can surpass.

Ye Tan: today we have a pessimistic and optimistic topic.

The most dangerous time for manufacturing is not only the serious excess capacity of the basic manufacturing industry, but also the lack of exit from manufacturing.

Like the stock market, the manufacturing industry lacks the normal delisting mechanism, so there is no new mechanism.

What should we do? For today's plan, take advantage of the manufacturing industry's struggle on the life and death line, return the market to the market, let the market acquire and restructure, and change the tax mode at the same time, so as not to compete for tax sources everywhere, and let the development of large enterprises benefit more areas.

No more reform, a few years.

May be swept away half of the output value.