ASEAN Manufacturing May Be Taking Over The Market Domination Of "Made In China" Once.

Benefiting from cheaper labor, land and resource costs, "

"May be taking over"

"Once owned"

Dominance.

Japanese media recently reported that Japanese companies' investment in ASEAN countries has exceeded investment in China for three consecutive years.

This data is not surprising - just three years ago, the total amount of foreign direct investment (FDI) in ASEAN countries has surpassed that of China.

More intuitive than the data is that at the beginning of this year, the Dongguan Xing Yang footwear industry, which had been commissioned by Nike and Prada, announced that it would stop production and pfer capacity to Southeast Asian countries.

Samsung also announced this year that it would hand over two hundred million smart phone orders to Vietnam.

The reason why China's manufacturing industry flies southeast is not difficult to explain.

According to the blue book on the development of the 2016 electronic information industry released by the China Federation of electronic information industry, the current labor cost in China is significantly higher than that in other developing countries in Southeast Asia. In 2015, the monthly salary of Chinese workers was as high as 325.6 US dollars, while the average monthly salary of Vietnamese workers in the same period was only 149.9 dollars.

Besides, financing is expensive, and the cost of logistics, electricity and oil can not be ignored.

"In the traditional machinery manufacturing, textile and other specific areas, China and ASEAN do have the relationship of capacity competition."

On the 2 day, the 2016 China ASEAN productivity Cooperation summit hosted by the China Economic and Social Council and the the Guangxi Zhuang Autonomous Region Committee of the Chinese people's Political Consultative Conference was held in Nanning. Chen Yantai, executive director of the school of politics and public administration of Zhejiang University of Technology, was interviewed by the China News Agency reporter during the forum.

In addition to "fighting hands" in the international market, competition between "made in China" and "ASEAN manufacturing" may also spread to the field of capacity cooperation.

According to industry sources, some ASEAN countries are no longer satisfied with importing capacity from China alone, but are inclined to introduce talents and technology from China to pform production capacity into "upgrading tool" made by ASEAN.

But for China, in the context of the declining proportion of foreign investment in the manufacturing industry and the continuous relocation of manufacturing enterprises, encouraging enterprises to set up factories overseas may aggravate the risk of Industrial Hollowing in some areas, and create a "crowding out effect" on the "made in China" market with the help of cost advantages.

Industrial Hollowing may lead to an increase in unemployment rate and a decline in economic growth. After all, structural pformation has not yet been completed, manufacturing is still the main kinetic energy of China's economic development.

To solve this problem, "double upgrading" has become a necessary path.

One is to promote pformation and upgrading of China's manufacturing.

In the top-level design of Chinese government, promoting the benign interaction between international cooperation and domestic industry pformation and upgrading is clearly one of the guidelines for international capacity cooperation.

Chen Yantai said that under the regulation mechanism of the market, local governments will tend to leave the high-end industries and encourage the relocation of traditional industries with excess capacity, which in itself can push the upgrading of industries in the region.

In the strategy of "made in China 2025", the government explicitly put forward that we should promote the pformation and upgrading of the traditional manufacturing industry and realize the high-end development in the development of the new technology revolution.

This will be a key measure to avoid Industrial Hollowing in capacity cooperation.

The second is to promote the upgrading of China ASEAN cooperation mechanism.

Chen Yantai believes that changing the simple complementary trade structure between China and ASEAN, promoting intra industry specialization and even more detailed division of labor will help to avoid vicious competition.

Most Chinese experts still believe that the interests of cooperation between China and ASEAN are far greater than competition.

Liu Yingqiu, the former dean of the Graduate School of the Chinese Academy of Social Sciences, said that China is faced with problems such as rising production resources and rising labor costs, while ASEAN countries also have short boards such as narrow market, insufficient employment and weak infrastructure.

Liu Yingqiu believes that "promoting the interaction between productive factors and productive capacity of China and ASEAN countries can not only awaken the local" sleeping "economic resources, explore various markets, but also help to achieve mutual benefit and mutual benefit between China and the east alliance countries at a faster speed, lower cost and higher quality, which is a great significance of productivity cooperation.