Made In China, How Can Crises Turn Into Opportunities?

The current situation of China's manufacturing industry has brought us deep anxiety. Without the developed manufacturing industry, there will be no Chinese economy. Is there any solution to the difficulties faced by China's manufacturing industry? In addition to low cost and abundant labor force, what are the winning weapons of manufacturing industry? We interviewed Mr. Barrett, chairman of the global manufacturing giant Intel and Mr. Zhao Qizheng, member of the CPPCC Committee. They believed that China's manufacturing industry needed innovation. Where is China made? It is a hot topic recently. Although there are not many Chinese brands in the world, Chinese made is indeed the most famous brand in China's economy. From clothing, shoes and hats to laptops and cell phones, China has become synonymous with cheap and fine products. However, with the increase of labor costs, the rise of the RMB exchange rate, the increase of bank interest rates and the adjustment of export policies, the road seems to be no longer feasible, and China's manufacturing industry has come to a crossroads. China's manufacturing industry needs innovation. The annual Canton Fair is the topic of our economy for half an hour. The Canton Fair is known as "China's first time". It is the largest trade event with the largest number of businessmen. However, in this year's Canton Fair, the reporter experienced two words, "decline". Li Keguo, general manager of Meyer import and export trading company: "like last year's Spring Festival fair, we had about $twenty million to sign the bill, so I reckon it might be one thousand to $4 million this year." In fact, due to the appreciation of the renminbi, the rise in loan interest rates and the rise in labor costs, a large number of Chinese export enterprises are now experiencing a collective setback. Yang Wensun, chairman of the Meyer group, said: "the profit margins that should be exported have now been compressed so that there is hardly any profit." Not only in the Canton Fair, but in recent months, our correspondents went to Guangdong and Zhejiang, which are the most concentrated export enterprises in China, and found that the survival of export enterprises has become increasingly difficult in the past one or two years. Zhou Dewen, President of Wenzhou SME Promotion Association, said: "twenty percent of enterprises are in a state of shutdown or semi shutdown." In the water head town of Wenzhou, called "China's leather capital", many tanneries have abandoned their old businesses for two years. Baoli leather factory duty officer: "the boss is in Shanxi coal mine, not here, the boss went to Shanxi." In the Daling mountain town of Dongguan, Guangdong, which is known as "the first town of Chinese furniture export", most furniture exporters here are struggling. Zhu Fozhang, chairman of Yuanda furniture, "now there is a saying that the more we do, the more we lose." The current situation of China's manufacturing industry has brought us deep anxiety. Without the developed manufacturing industry, there will be no Chinese economy. Is there any solution to the difficulties faced by China's manufacturing industry? In addition to low cost and abundant labor force, what are the winning weapons of manufacturing industry? I also interviewed Mr. Barrett, chairman of the global manufacturing giant Intel, and Mr. Zhao Qizheng, member of the CPPCC Committee. Why can they sit together and talk about the topics made in China? Barrett, chairman of Intel's board of directors, said: "the next Google may be born in Tsinghua University, Peking University." Barrett: Dr. Barrett joined Intel in 1974, became the fourth president of Intel in 1997, and became chairman of Intel board in 2005. Intel is the largest semiconductor chip manufacturer in the world, and semiconductor is considered to be the most complex product in the world. Zhao Qizheng, member of the Tenth National Committee of the Chinese people's Political Consultative Conference (CPPCC), said: "the Olympic Games will be held in Beijing without permanent champions." Zhao Qizheng: in 1993, he was the director of the Shanghai Pudong New Area Management Committee. He introduced a number of excellent transnational high-tech enterprises with his foresight. In the eyes of foreigners, he was dubbed "Pudong Zhao". He was the director of the Information Office of the State Council in 1998, and was the tenth member of the National Committee of the CPPCC in 2005. Zhao Qizheng first invited Intel to China 15 years ago, which is another 15 years after they meet again. Rui Chenggang: "we recently" economic half-hour "made a series of programs, including all walks of life in China, from leather to furniture, and even to make shoes, and so on, many of these enterprises in China are facing the risk of bankruptcy. Many people say that China's manufacturing industry as such a production base, the price advantage of the world factory has no longer exist. Many enterprises, for example, automobile manufacturers say that in Latin America, in Latin America, in Vietnam, the cost of labor has already been lower than China, and China has no longer enjoyed this advantage. I don't know what director Zhao and Mr. Barrett think. Zhao Qizheng: "simply speaking, China is the world factory is a relatively low-end industry, and you just said that now some low value-added, gradually bankruptcy or relocation, this is not a bad thing, because this opportunity to upgrade China's industry, so I still take a positive view of it as a challenge and opportunity to treat." Barrett: "in the past 20 years, China has made great progress in the manufacturing industry, but mainly depends on the low labor force and then manufacturing exports. Then the problems China faces is similar to that of the United States. The industry must be upgraded. Our manufacturing industry must have higher added value. This means that we need more R & D capabilities and intellectual property rights. We should carry out more high-end manufacturing, not just low-end manufacturing, but I think the low-end manufacturing industry is transferred to Vietnam. This is definitely not a bad thing. So long as we continue to invest in the process of China's industrial upgrading, education can continue to continue, which is definitely not a bad thing." Rui Chenggang: "so the two is equal to the acquiescence. It is true that China is losing the fact that the cost of production is relatively low. China is indeed losing, but the problem is that it is both a challenge and an opportunity. China can take this opportunity to complete an industrial upgrading. How did Intel survive these difficulties when Intel faced the manufacturing crisis?" Barrett: "in our (Intel) forward process, we have a very simple model. This pattern is that we always invest in any case. We never solve problems through savings, but we solve problems through investment. We are always able to make long-term investments, not just for the current problems, through research and development, through innovation. Only when we invest continuously for the future, can we maintain the leading position in technology. Sometimes, the financial circles do not like this kind of practice, including the media, some people say that Intel should slow down the pace of investment, but we never stop to make investment in the future." Rui Chenggang: "if I sum up that is when Intel is in trouble, as a manufacturing giant, it is always through more research and development, through more investment to solve problems, rather than to evade, otherwise, today's Intel may also dig coal." Zhao Qizheng: "this is also very difficult. We all know that high-end products have high profits, and high-end products have promoted the overall strength of the whole country. If we want to do this, we can not do it. One is whether you have the ability, and whether you have the chance or not. The opportunity is also very important." Rui Chenggang: "Intel is a world-class enterprise built in forty years. Now if anyone wants to make chips in the world, we also have chip enterprises in China, such as Chinese enterprises, microprocessors, etc., and chips, such as cars, China also has car manufacturers, and mobile phones are more like that. But we have missed the opportunity to become a world leader, and have been attacked by winners. We have already been eaten up by early birds. Do we still have such an opportunity?" Barrett: "of course, you can see a similar situation in the United States, such as Motorola, is the father of mobile phones, and now struggling in the United States, facing all kinds of competition, it is also very difficult, because it did not make the necessary investment, so this is a constant competition, whether Motorola, panda, NOKIA, or Samsung, everyone is developing in competition, if you lag behind, it will be very difficult." Zhao Qizheng: "the Olympic Games to be held in Beijing, there is no permanent champion. Forty years ago, the Japanese women volleyball team was the best. Later, the Chinese women volleyball team caught up with it. Later, the Chinese women volleyball team has been in recession for several years, and now it has gone up again. This is just like the Olympic Games. Good athletes should have good coaches, good bodies and good sports occasions. Then, China's scientific research environment is improving. This includes one, education, and now we have many universities, a lot of people, and many people can study abroad, and many people can study abroad. There are also good realities. So, the opportunity, the Chinese market is bigger, and the world market is bigger. What do we lack most? What's missing is investment. Like Intel, I checked it online, and it has five billion research funds a year, which exceeds the sum of all our IT companies. " Rui Chenggang: "you talk about a very core, like Mr. Barrett said, the key is, for example, Motorola's current difficulties, because Motorola may not invest enough in research and development, but I think Motorola's investment in research and development may not be enough, it may be a judgment problem, maybe less investment, not that there is no such funds, for many Chinese enterprises do not have the money, no money to invest, does that mean that there is no such investment to continue this research and development, it is difficult for Chinese enterprises to achieve such a high degree of technological innovation?" Barrett: "no, I think there are many great opportunities for cooperation and coordination. There are good cooperation between Intel and local enterprises in China. Some intellectual property rights of Intel combine it with China's R & D capability and the market side of China's local companies to produce good products. There are many great universities in China. They can cooperate with European universities in the United States to jointly develop leaps and bounds." Zhao Qizheng: "Mr. Barrett is right, of course, there is a main force in creation. We should encourage Chinese scientists and engineers to create together, rather than simply imitate, so this creation is also the consensus of the whole society, not just by engineers themselves, but the development of leaping development can be achieved. The development of leaps and bounds can be said that any country is also benefited from the experience of other countries. If people succeed in doing things, we can judge whether we can succeed, that is to say, people spend their tuition fees, and we must learn lessons from them." In the eyes of Barrett, the high-end manufacturing industry needs a lot of capital to invest in innovation, and only in this way can enterprises maintain their core competitiveness and remain enduring. However, as one saying goes, money is not everything, and capital investment and technological innovation can not be equated equally. So what links must we have among them to really turn investment into innovation? Barrett told us a place to look for answers. In the past ten years, the challenge of Microsoft is not from other companies. It is from some of the independent research areas of universities that Netscape is the browser born from universities. YAHOO is the directing of the Internet created in the environment of Stanford University. Google also comes from Standford's search engine. So the real challenge of big companies is not anything else, but rather from a certain idea, a researcher in a university. This is why a good education system, investment and basic research in universities are so important. Barrett: "for our innovation, University is absolutely very important. Our basic technology research and development is not done in the enterprise, but in the University. Rui Chenggang: "this topic enlightens me. Maybe we lack funds in China, not R & D funds, but a lack of planning, nurture these most leading ideas or basic ideas such an environment?" Zhao Qizheng: "what Mr. Barrett is talking about is the difference between science and technology.