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    How Can We Keep The High-End Manufacturing Industry In China While Leading Globalization?

    2017/2/26 16:52:00 36

    GlobalizationHigh-End ManufacturingChina

    "Why does each pair lose 3 US dollars and take orders?" the reporter asked Lao Tang.

    "In order to enable enterprises to function properly."

    Lao Tang replied that a factory nearly 30 years old was "dying to die."

    The shoe factory that moved from Taiwan to Guangdong in the late 80s of last century is a miniature of China's manufacturing.

    There are many employees over 10 years of service. Once the factory is closed, the enterprise will pay a large sum of compensation at once.

    Therefore, the production line of Old Tang must continue.

    In the past few months, a large number of us orders have been pferred to other Southeast Asian countries.

    For Lao Tang, even orders for losing money must be answered at this time.

    Li Dongsheng, chairman and CEO of TCL, told reporters that due to human cost factors, the pfer of labor-intensive industries to Southeast Asian countries is taking place.

    What is more worrying is that European and American developed countries that have mastered advanced technology are also launching industrial revival plans one after another.

    Song Zhiping, chairman of China Building Materials Group, told reporters that the land in South Carolina is very cheap, and now a group of Chinese enterprises have been gathered there.

    But Li Dongsheng believes that at least, at present, China's industry still has certain international competitiveness, because the Chinese government's efficiency and infrastructure construction are all very prominent.

    In addition, Wang Yuelin, chairman of Polytron Technologies Inc, believes that the most difficult to surpass in China is the integrity of the industrial system.

    Taking silicon industry as an example, from the most upstream silicon mine to the most downstream silicone sealant and nano silicon additive, a complete industrial chain can be found in China.

    To cope with the more complicated international competition situation, China has put forward the outline of "made in China 2025". From the government's attitude towards manufacturing industry in the near future, it will also be tilted in policy in the future.

    But what we can not ignore is that China's manufacturing is facing multiple tests only at home.

    The first competition comes from all echelons of industries. Apart from talents who prefer Internet, finance and other enterprises, manufacturing industry is also at a disadvantage in competition with other industries in attracting capital.

    Ma Jincai, deputy general manager of Huahong holding group in Yiwu, Zhejiang, complained to reporters that the problem of raising funds for financing is expensive. "It has been said for many years, but there has been no marked improvement in the past two years".

    According to him, at present, when banks are lending to manufacturing enterprises, interest rates generally float on the benchmark interest rate of 20%~30%.

    And banks generally require loan companies to open accounts in banks, maintain a certain balance of deposits, or even buy part of the bank's financial products.

    Therefore, the real interest rate of the enterprise's final loan is much higher than the nominal interest rate.

    The study of weensen, a professor of economics at Fudan University, shows that since 2011, the real interest rate of banks has been higher than that of all enterprises in China, which means that the "real interest rate" is higher than the "natural interest rate".

    The second test comes from the industry itself. Excess capacity and disorderly competition are affecting the development of industries and enterprises.

    Song Zhiping and Wang Jianlin, chairman of Wanda Group, once had a dialogue.

    Wang Jianlin said, "your building materials business is really good. The housing prices have doubled over the years, but the price of cement has not increased."

    "Instead of raising prices, the price of cement per ton has dropped by 100 yuan compared to 20 years ago."

    Song Zhiping smiled bitterly.

    Although China's building materials have become the world's largest cement manufacturer, it still has no pricing power in this fully competitive industry.

    Similarly, as a controlling subsidiary of China's building materials, the new building material has 50% market share in the Chinese plasterboard market, but it still needs to carry out price war with the workshop type enterprises. The latter is restricted by capital and technological strength, and often can only make money by compressing the cost, or even counterfeiting and shoddy.

    Wang Bing, chairman of North new building materials group, believes that China

    manufacturing industry

    The premise of development is to create a fair and just market environment, so that the counterfeit and shoddy people can hardly survive and let the high quality enterprises develop.

    "Sometimes, the business is to die by itself."

    Mao Jian, director of the enterprise office of Yiwu's Town Hall Industrial Park, told reporters that the cost of an underwear was 5 dollars. A enterprises quoted 6 dollars, B enterprises would report 5 dollars, and C enterprises immediately reported 4.5 dollars.

    "The most annoying thing is that the bosses of ABC's three companies know each other."

    For the vicious competition between small and micro enterprises, Mao Jian felt very helpless.

    But what puzzles many big enterprises is that their living environment is not even better than that of small businesses.

    Foxconn, for example, is highly regarded as an enterprise with high concern. Foxconn is very disciplined in terms of the payment of social security fees and overtime control, but small businesses are very keen on loopholes in this area.

    This leads to the fact that although the basic salary of Foxconn is higher than that of other households, the cash income that workers eventually get is not competitive.

    The third test comes from

    Tax and fee reform

    Wang Li set up second factories in 2015, because the annual output value of the former enterprises has exceeded 50 million yuan. According to the regulations, they should be included in the monitoring list of key tax sources.

    After the calculation, Wang Li decided to turn the business from "big to small" and disappeared in the eyes of the government.

    "Many enterprises say reasonable.

    tax avoidance

    I think it is tax evasion, because there is no money to earn without losing money. Even now, I almost have no net profit.

    Wang Li said.

    In Zhu Bin's view, the most sensitive to taxes is the small and medium-sized enterprises.

    There are different tax rates for different types of enterprises. "Now the tax rate has a special consideration for small and micro enterprises, so small and medium-sized enterprises can also make relevant adjustments in turn, and those are large and relatively stable operations."

    Zhu Bin pointed out that such a hierarchical tax adjustment would also be more targeted.

    In 2015, the State Council issued the "made in China 2025" plan to comprehensively promote the implementation of the strategy of manufacturing power. However, China's manufacturing needs to cross many passes from this goal. At the same time, it also tests the art of regulators in making policies, how to reduce burdens on enterprises while eliminating backward production capacity, and how to create a fair and fair market environment to support enterprise development, and how to lead high-end manufacturing in China while leading globalization.

    For more information, please pay attention to the world clothing shoes and hats and Internet cafes.


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