The Challenge Of "Made In China" To ASEAN Manufacturing

Seeking lower costs and avoiding trade barriers are the main reasons for the pfer of enterprises to ASEAN.

In recent years,

Transfer to Southeast Asia has become the focus of attention from all walks of life, and the phenomenon of "southeast flight" in manufacturing industry is closely related to the gradual increase of production cost in China at the same time, and avoiding trade barriers has also become an important driving force.

However, some experts and scholars said that China's status as "world factory" will not change in the coming period because of the improvement of labor quality and the improvement of attracting investment environment in recent years, and "made in China" will still dominate.

Manufacturing industry "southeast flight" presents two trends

Recently, at the Ninth China ASEAN Expo held in Nanning, Guangxi, experts and scholars attending the fair believed that the current "southeast flight" of manufacturing industry showed two trends:

On the one hand, foreign investment originally invested in China began to pfer to ASEAN countries.

Nike

This is vividly illustrated by the factory's pition from China to Vietnam.

In 2000, China produced 40% of the world's Nike shoes, the world's first and Vietnam's share at that time accounted for only 13%.

Subsequently, China's output declined gradually, and Vietnam's output increased year by year.

In 2009, the output of Nike shoes in China and Vietnam was the same, accounting for 36% of the world's total.

In 2010, the situation reversed and Vietnam replaced China as the world's largest producer of Nike shoes.

According to an annual survey conducted by the United Nations Conference on Trade and development (UNCTAD) in 2012, Indonesia and Thailand ranked the most popular among the most popular host countries selected by multinational corporations.

The report holds that the relative competitiveness of ASEAN countries in manufacturing continues to grow as the wage costs and production costs of East Asian countries, especially China, continue to rise.

On the other hand, manufacturing industry in eastern China has also shifted to ASEAN countries.

It is the "world factory" in the electronics and IT industry. The production of computer accessories accounts for 60% of the world's total, and the electronic matching capability accounts for more than 90% of the world's total.

However, Chen Zhihua, President of Guangdong computer Commerce Association, said that in recent years, a large number of Guangdong electronics enterprises have pferred production workshops to ASEAN countries instead of Western China.

The pfer of manufacturing to ASEAN countries has directly promoted the development of local economy.

Nike has gradually pferred orders from China to Vietnam in the past ten years, and Vietnam's manufacturing industry has been developing rapidly for ten years.

Statistics show that since 2000 Vietnam's manufacturing output has increased at an annual rate of 11%.

At the same time, Vietnam's manufacturing industry began to pform and upgrade. From the previous production of primary products to the field of mechanical manufacturing, it has been able to produce complete sets of machinery and equipment by itself, and has made progress in the field of automobile and shipbuilding industry.

But China's unique "world factory" status has been challenged.

According to the 2012 world investment report released by UNCTAD in July 5th, foreign direct investment inflows to Southeast Asia in 2011 amounted to US $117 billion, an increase of 26% over the previous year, while China's growth rate was less than 8% in the same period.

Some grass-roots cadres in the western region also say that in recent years, because of competition from Southeast Asian countries, the western region has to pay more energy and strength to undertake industrial pfer in developed areas and eastern regions.

Seeking lower costs is the leading cause of the manufacturing industry's "inferior Southeast Asia".

Reporter survey found that in addition to developing a broader market of ASEAN countries, seeking cheaper costs and evading trade barriers are two main reasons for the pfer of manufacturing to ASEAN.

Seeking cheaper costs is the primary reason for the pfer of enterprises to Southeast Asian countries.

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Chen Jiagui, former vice president of the Chinese Academy of Social Sciences, said that China has entered the middle stage of industrialization, and the eastern part has entered the late stage of industrialization, especially in cities like Beijing and Shanghai.

After the economic development to the later stage of industrialization, the price of land and labor will rise, and the environmental load will continue to increase. Industrial pfer will become inevitable.

At present, the per capita G D P of Southeast Asian countries is only 3000 US dollars. It is still in the initial stage of industrialization, and the cost is relatively low in all respects, which provides an opportunity for industrial pfer.

Chen Zhihua, President of Guangdong computer Commerce Association, said that compared with China, the labor and land prices of ASEAN countries are much cheaper.

For example, he said, in Kampuchea, the wage cost of a production line worker is around 400 yuan and does not include food and lodging. At the same time, the land price is only 1 US dollars per square meter, which is very attractive for labor-intensive enterprises.

Evading trade barriers is also an important reason for industrial pfer.

Chen Jiagui said that China, as a big trading country, has maintained trade surplus with many countries in Europe and America for a long time. Considering the pursuit of trade balance, forcing RMB appreciation and winning votes for election, European and American countries tend to create trade frictions against China and increase trade barriers against "made in China".

But the European and American countries need to import from other regions "even if they are not imported from China", and the pfer of manufacturing to ASEAN countries can effectively avoid these barriers.

At the same time, the pfer of manufacturing to ASEAN is conducive to avoiding trade barriers between China and ASEAN countries.

Liuzhou is one of the five most powerful cities in China. In 2011, vehicle sales accounted for more than 8% of the total automobile production and sales in China.

Liuzhou also intends to build an automobile production base in ASEAN.

Gu Zhangwei, director of the Liuzhou Municipal Commerce Commission, said that China's exports of motor vehicles to ASEAN countries are now facing more trade barriers. But if Liuzhou's automobile industry turns its manufacturing base to ASEAN, it can make use of the technological and financial advantages of Liuzhou's auto industry to expand exports.

The dominant position in China is short term.

Although "made in China" has been challenged by "ASEAN manufacturing", experts generally believe that China's manufacturing industry still has strong advantages in the next period of time. China's manufacturing industry chain and labor quality in the process of reform and opening up in the 30 years are still in the leading position in the world.

Chen Jiagui judged that although some enterprises will "move out" in the future, the volume will not be large.

He believes that although the labor cost of ASEAN countries is relatively low, the quality of labor is not as good as that of the mainland. Currently, China has basically popularized nine years of compulsory education, and the quality of labor is relatively high.

At the same time, compared with China, the infrastructure construction of ASEAN countries is lagging behind.

Li Hui, deputy general manager of Guangdong Zhen Rong Energy Limited, said that some countries in the ASEAN region are not very well equipped, increasing investment pressure and prolonging the construction cycle.

Experts believe that even if a part of foreign-funded enterprises go to Southeast Asian countries, these foreign enterprises will inevitably encounter the pressure of industrial chain reconstruction.

In fact, the foreign enterprises that have been or are under the "Southeast Asia" have formed a very difficult relationship with China's "world factory".

Although these enterprises have left China, from the perspective of future upstream and downstream relations, to a large extent, China can not do without the large system of manufacturing industry in China.

Chen Zhihua said that the current ASEAN electronic industry is incomplete and many parts must be pported from the Pearl River Delta to increase logistics and time costs.

Experts believe that China still has enough attraction for foreign investment.

According to Beijing's new century multinational research institute, a survey of 30 famous multinational companies, international

Since then, many multinational companies are still actively distributing China, and China's position in the global strategy of pnational corporations has been greatly enhanced. Most large multinational companies have increased investment in China and further strengthened their strategic layout in China.

Experts predict that "made in China" will still lead the manufacturing industry for a period of time, and still occupy a dominant position.