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    China Has Not Lost The Comparative Advantage Of Manufacturing Industry.

    2016/5/31 20:14:00 20

    ChinaManufacturing IndustryCompetitive Advantage

    Recently, the topic of whether China has lost the comparative advantage of manufacturing industry has been fermented again.

    It is difficult to draw a conclusion from the domestic perspective of the problem, which requires an international comparison perspective.

    For the current situation of China's manufacturing industry, it seems that it is difficult to reach a unified conclusion.

    Last year, the topic of buying toilet seats in Japan also aroused great public concern over China's manufacturing industry.

    China

    Behind the times?

    Different countries have different characteristics when making specific analysis and comparison.

    For example, the structure of primary energy consumption in China is obviously different from that in western developed countries. China is still dominated by coal. Therefore, the price of natural gas should not be used as a comparative index.

    This is a complex analysis framework, and the author tries to give a brief description of it.

    The rise of labor costs can not be applied to the labor contract law.

      

    Manufacture

    The cost of industry is mainly the price of labor and land, as well as the cost of basic raw materials such as electricity and oil.

    In recent years, there has been a sharp attack on the labor contract law in China. Lou Jiwei, the Minister of finance, has also publicly expressed his dissatisfaction with the labour law for the two time.

    "

    Labor Contract Law

    "It does have its problems, but I think the problem is technical and reduces the flexibility of the labor market.

    This is a common problem with the protection of workers' rights and interests.

    At the same time, fundamentally speaking, labor cost is determined by the demand and supply of labor force.

    At present, the rise in labor prices is mainly due to the reduction in the working age of our working population over the years, which is the fundamental reason for the rise in labor costs in China.

    Of course, the price of labor only depends on unit time.

    Labor cost in China should be higher than that in Southeast Asia and India.

    However, the degree of diligence of Chinese migrant workers is incomparable to that of many other countries. Overtime work has become the norm among migrant workers.

    Moreover, there are many deficiencies in the protection of labor rights and interests in China.

    Therefore, although we are at a disadvantage in terms of labor prices, China has an advantage over these countries.

    Take India as an example, is the land cost of China higher than that of India? It is not good to judge absolutely, because the land system of India decides that its land acquisition is very difficult, so the cost of land use is not low.

    In terms of infrastructure, India is far from China, and the two are not at one level.

    Take India as an example, in 2010, I went to India and found that New Delhi was a "first tier city" in the country, and the infrastructure was not very good.

    The difficulty of land acquisition in India has also affected the construction of infrastructure such as roads.

    But in the relatively developed countries, there may be a distance between China's infrastructure and the central and western regions, especially in the central and western regions.

    The system of commercial residential land and industrial land in China is separate. The price of industrial land pfer is relatively low, and some places are even zero land price.

    But the problem is that residential land prices and housing prices are very expensive, affecting the cost of living of employees, indirectly affecting the cost of manufacturing.

    Moreover, in large cities, especially in the first tier cities, the large number of industrial land available is becoming less and less, which has caused great pressure on manufacturing enterprises.

    China's energy prices do not seem to be high, though the trend of price increases is obvious.

    In the past ten years, China's price reform seems to have an unchangeable logic: China's water, electricity and other energy prices are too low, which not only leads to price system imbalance, but also leads to waste and pollution.

    Liberalization of public service prices and price rises also seems logical.


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