The General Trend Is That China'S Existing Processing Industry Will Move Outward.

Yifu Lin, honorary president of the National Development Research Institute of Peking University, suggested that developing countries should identify their comparative advantages and then turn them into their own competitive advantages at the South Wudaokou thematic forum of the global financial forum of Tsinghua University.

Yifu Lin said that by the end of 1978, 78% of China's population was below the poverty line. The per capita GDP was lower than the average 1/3 of the sub Saharan African countries at that time. From the end of this year, miraculous changes began to take place, and GDP grew for 9.7% consecutive years in 36 years. It became a middle and upper income country. In the past 30 years, 680 million people were lifted out of poverty.

Analyzing the reasons for the rapid growth of China's economy, one is the continuous innovation of technology, the other is the continuous distribution of resources from the existing industrial distribution to the higher value-added industries.

Yifu Lin said that in addition to funds for other South South cooperation countries, China is very important for this window of opportunity.

Because of the huge scale of China's industry, many countries can benefit from it.

Developing countries can make use of the gap with developed countries as the source of their technological innovation and industrial upgrading, and the cost of their development is much lower than that of the developed countries, and the speed of development can be much faster, which is the backwardness of developing countries.

After the Second World War, 13 economies, including China, made use of the advantage of late development to achieve rapid economic development.

After 1979,

On the one hand, we should continue to grant subsidies to state-owned enterprises and maintain stability. On the other hand, we must liberate industrial access that is in line with comparative advantages.

Faced with the very poor infrastructure and business environment, China set up

The limited resources will be used to improve the governance environment in the SAR.

In addition, China uses its labor-intensive comparative advantage to attract foreign investment, and introduces labor-intensive enterprises abroad to promote industrial development and gradually upgrade.

Yifu Lin said that for South South Cooperation (that is, the economic and technological cooperation among developing countries, most of which are located in the southern hemisphere or the southern part of the northern hemisphere), low income countries must first develop industries that are in line with comparative advantages at every stage of economic development, and introduce these industries in a low risk and low cost way, so that there will be a rapid growth.

At the same time, the government must actively act according to circumstances, and concentrate on doing great things in order to do one-stop service in special economic zones or industrial parks, so that even if the national governance environment and infrastructure are lagging behind, it will not impede the rapid economic development.

In Ethiopia, such a development path is being implemented.

It is introduced that the leather processing industry is in conformity with the comparative advantage in Ethiopia.

In August 2011, the former Prime Minister of Ethiopia came to China to attract investment. After visiting the business delegation from Dongguan, he decided to invest before he was attracted by the great advantage of the wage cost.

In January 2012, enterprises started production, then there were 2 production lines, employing 600 workers.

In March, products were exported and enterprises became the largest leather export enterprises in Ethiopia in May.

By the end of that year, the number of employed workers increased to 2000, and in second years, the number of employed workers increased to 4000.

Under the demonstration of the enterprise, 22 enterprises came to invest in Ethiopia in 2013, and many international buyers such as H&M set up procurement offices here.

Previously, because of its poor infrastructure, no one thought it could become a manufacturing base for the world's processing industry.

What will China's rapid development bring to South South cooperation? Yifu Lin said that China, as a middle-income country, will start exporting capital abroad. China is now the second largest source of capital in the world, and is still on the rise. There is a general shortage of funds in developing countries, and China's capital will flow out.

In addition, China can bring structural pformation opportunities to other developing countries.

In the 80s of last century, the wages of workers in Korea and Singapore rose and lost their comparative advantages.

In the course of reform and opening up, China seized such a window of opportunity and vigorously developed labor-intensive processing industries to achieve rapid economic growth.

Today, China will soon lose its comparative advantage. Whether we are willing or unwilling, China's existing processing industry will shift outward.