Macro Economy Is Not Enough To Explain Why China Is Shoe Market.

From micro to macro, academia and society have different views on economics.

However, it is far from enough to explain today's Chinese economy whether the traditional theory of economics, mainstream theory or macro economics is used to analyze the total amount of a country's economy.

Why is macroeconomics not enough to explain China? Because China's economy has undergone 30 years of reform and opening up, and it has become a part of the world without knowing it.

Perhaps we ourselves are not fully aware of the need to observe from a global perspective.

In the past few years,

Of the GDP, the proportion of import and export accounts for more than 70%.

The economic stage that China is experiencing is unprecedented in the history of world economic development since the beginning of the British Industrial Revolution. It is almost unprecedented in human history, and no country has ever opened up to such a level as China today.

A world-famous economist has made a great power model based on the historical data of 110 countries, and has made many analyses and regressions. The conclusion is that 40 million or more countries or economies can rely entirely on the domestic market to develop economy, so the proportion of their opening to the outside world is very low, which usually accounts for only GDP of 11%-12%.

We feel that the economic development of the United States is great, that is the absolute value of GDP, but the proportion of imports and exports of the United States to GDP is much lower than that of China today.

In the world, the opening level of small economies can be very high, and imports and exports can exceed the proportion of domestic GDP, but large countries are very few.

But the economic situation of our country can be regarded as a counterexample of this great power model.

We have a huge population, and the economy is huge, but we do.

The proportion is so high that it reflects the most extraordinary events of the world.

I think that in the great era of the economy, it may not be necessary to see a lot of data. It can be seen from observable events, such as textiles and shoes, that it sounds like a very small thing, but it has become the relationship between the three most powerful countries in the European Union, the United States and China, which has caused a lot of trade friction.

Of course, from a historical point of view, trade frictions always exist since there has been economic and trade exchanges.

The rising stars are bound to challenge the leading countries and economies, and their manifestations are trade frictions.

The United States used to be an agricultural country, rich in cotton, tobacco, timber and so on.

At that time, all industrial products were shipped from Europe, especially Britain.

When the US economy developed and the dependence on European industrial products decreased, the trade friction between the United States and Britain began.

Similarly, Japan's economy will start trading frictions between Japan, the United States and Japan and Europe.

Today's trade frictions are different in nature.

Small products will turn into big problems, even if they are only shoes and socks, because the proportion of their imports and exports in GDP will affect the interests of domestic industrial workers. Therefore, heads of state or senior officials of the Ministry of Commerce often need to enter the negotiations between the state and the country in person.

Specifically to China, the export volume of Chinese products has affected the existing pattern of the world economy.

This is a very real issue of economic interest and should not be underestimated.

We advocate a market economy, but in the global economic competition, there has never been a pure market economy, and competition depends on other factors. Tariff, non-tariff, political and diplomatic means will be used.

Because of this unfavorable competition situation, it really causes damage to the local economic interests.

So we need to negotiate, balance and negotiate.

In the past two years, China has made structural adjustments, and the proportion of exports to GDP has declined. However, the number one product in the world is still not less than one hundred, not only for labor-intensive enterprises, but also for products with certain technological content.

This phenomenon must be paid attention to.

Still with

For example, there are about 6 billion pairs of shoes produced annually in China, which account for half of the world's shoes.

The earliest shoe manufacturing enterprise in Dongguan was Taiwan funded, and once owned 150 thousand workers. The output of one year is about one trillion and seventy million pairs of shoes.

At the very beginning, the management of the factory was commanded by the Taiwan headquarters. After two years of development, Taiwan headquarters did not know how to control it.

The factory of 150 thousand people, they have not managed, experience has become invalid.

Harvard Business School also did not understand, this is a considerable knowledge, and even how to open meals is a great thing.

In this way, we have explored the road that our predecessors have not gone through. We have unknowingly developed into a country whose shoes account for more than half of the world's annual output.

Export volume is competitiveness, and consumers in the consumer countries (603883) are very happy because they can buy products with high quality and low cost.

But its producers are crying, and his shoes are not sold.

Because of the same quality shoes, the local production cost is more than 20 euros, and we shipped to European ports, the average is only seven or eight euros a pair.

How could it compete with you?