Is China Still The World'S Factory?

In recent days, the financial circles have been discussing a topic: is China still a factory in the world? A lot of well-known foreign-funded enterprises have been camping in China, and "made in China" is all over the world.

However, in recent years, China's manufacturing industry is losing competitiveness, and China's wage level has increased substantially in the past 10 years.

The average wage is higher than most Southeast Asian countries and South Asian countries. Labor cost advantage has become a past event.

For example, in 2000, 40%

Made in China, 13% made by Vietnam.

By 2013, manufacturing in China accounted for only 30%, while Vietnam made 42%.

In my opinion, it is not a bad thing for China to lose the title of "world factory".

On the contrary, this is the only way for China to develop into a strong manufacturing country.

Why do we say so? Because "world factory" and "cheap labor force" can almost equate.

International experience shows that if middle income countries succeed in striding across the "middle income trap" and "high income wall", the productivity level of the industry must be continuously promoted.

To abandon the "world factory" of cheap goods such as clothing and toys used in the past, efforts must be made to pform higher value manufacturing industries such as automobiles, airplanes and electronic products.

Just like our country's "China made 2025" 10 year plan put forward, we should pform from a big manufacturing country to a manufacturing power, and promote the quality of products to the United States and Europe.

This will not only benefit the ordinary people, but also optimize China's economic and industrial institutions and enhance the driving force for economic growth.

In this process, we have to do two things well.

On the one hand, while gradually getting rid of the "cheap labor force", we must improve labour productivity.

The results of the Oxford Institute of economic research show that the cost of labor in China's manufacturing sector is now approaching the US, but labor productivity is only 1/4 of that in the US.

With the rise of China's industrial costs, especially the increase of labor costs, low-income developing countries will vigorously develop labor-intensive industries, and the developed countries will revive the manufacturing industry. If China's manufacturing industry does not speed up its productivity growth, it will face two directions of extrusion from high-end and low end.

On the other hand, we are concerned about the demand and potential of domestic consumer groups.

China's consumer groups have been formed, the middle income group has risen rapidly, and has become the world's fastest growing and huge consumer market.

Therefore, how to excavate the potential of "world wallet", let it not flow into the field of foreigners, and march toward the "world office" will be an urgent problem to be solved in the 10 year plan of "China made 2025".