Restraining Financial And Real Estate "Barbaric Growth" Can Make Manufacturing Industry A Way Out.

Since the reform and opening up, China's economic miracle has largely depended on export oriented manufacturing, especially after joining the WTO.

Most of China's manufacturing industry is concentrated in the eastern coastal areas such as the Yangtze River Delta and the Pearl River Delta.

Now, these areas are one of the richest areas in China. Rising housing prices have led to higher factory rents and labor costs.

The Chinese government is trying to guide.

From the eastern region to the lower cost western region.

But first, the rise in labor costs in China is due to labor shortage, which is the same in the whole country. The labor in the west is not much cheaper than in the East. Secondly, the West has disadvantages in pportation cost, infrastructure and industrial chain. Therefore, more and more manufacturing companies are moving to East Asia or South Asia.

In the background of the increasing cost of manufacturing industry and the continuous decline of profits, China's financial industry has sprung up in recent years, attracting more industrial capital to financial investment.

China's economy is increasingly heading for financial arbitrage, and the risk of bubbles is bigger and bigger.

This phenomenon is increasingly unfavorable to the real economy.

For local governments and enterprises, the combination of Finance and real estate is currently available.

The growth area, the financial and real estate crackdown will impact economic stability.

However, the suppression of "barbaric growth" of Finance and real estate will result in the hollowing out of China's economy.

In the words of HUAWEI founder Ren Zhengfei, "high cost will eventually destroy your competitiveness".

In a globalized era, there will be no future in areas where manufacturing costs are high but the economy can not be pformed.

In the Yangtze River Delta, the Pearl River Delta and Beijing, Tianjin and other China's most important

R & D power is mainly in big cities such as Shanghai, Shenzhen and Beijing. They have less resources than other regions in China.

Now, the housing prices in these tier cities are already unattainable, causing the manufacturing industry around the first tier cities to shift due to rising costs.

It can be said that the rising prices and living costs of core cities will also impact the R & D of the whole country.

Relying on the mode of real estate development has stifled the competitiveness of the manufacturing industry.

In the Yangtze River Delta and Pearl River Delta region where the manufacturing industry is concentrated, the second tier cities are also bubbling in the latest wave of rising housing prices.

Areas with the greatest economic vitality are being wrapped up, that is, excessive housing prices inhibit urban vitality and enable citizens to bear higher and higher cost of living, weakening competitiveness and affecting future development.

As a financial and service center, Hongkong has also planned to develop high-tech industries, but the failure of pformation is mainly due to rising housing prices.

At the same time, Singapore pformed itself from over reliance on the financial sector, and the high-tech industry grew gradually because the Singapore government's proper management of the property market inhibited the property bubble.