Is the competitive advantage of China's manufactur

2022-08-01
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Is the competitive advantage of China's manufacturing industry losing gradually

recently, with Trump's encouragement and guidance on the return of American manufacturing industry after he was elected president, and the former "Glass King" caodewang invested $1billion in the United States, Softbank founder son Zhengyi showed trump a "joint investment commitment letter", which was attached with the Autographed names of Softbank president son Zhengyi and Foxconn president Gou Taiming. The general content was that the two promised to invest $57billion in the United States in the next four years, A series of events, such as the creation of 100000 jobs outside China, inevitably led to a round of Sino US manufacturing competitiveness PK. Is it true that the cost advantage of China's manufacturing industry is gradually losing? What challenges and opportunities will we face in the future? Recently, with Trump's encouragement and guidance on the return of the US manufacturing industry after he was elected president of the United States, and the former glass magnate Cao Dewang invested $1billion in the United States, the founder of Softbank, son Zhengyi, showed trump a joint investment commitment, which was accompanied by the Autographed names of Softbank president sun Zhengyi and Foxconn president Gou Taiming. The general content was that the two promised to invest $57billion in the United States in the next four years, A series of events, such as the creation of 100000 jobs outside China, inevitably led to a round of Sino US manufacturing competitiveness PK. Is it true that the cost advantage of China's manufacturing industry is gradually losing? What challenges and opportunities will we face in the future

what we should see about the plight of China's manufacturing industry is that on the one hand, in the field of high-end manufacturing, Germany, which emphasizes industry 4.0, and Japan, which proposed the fourth industrial revolution, still maintain their advantages; On the other hand, with the gradual loss of China's demographic dividend, its competitiveness in the field of low-cost manufacturing is indeed decreasing. Countries that rely on lower labor costs, such as Vietnam and Bangladesh, have been eroding China's space in the fields of textiles and clothing. At present, China's manufacturing industry is facing fierce competition, and the competitive advantage in the past is gradually losing. What challenges and opportunities will China's manufacturing industry face as a whole in the future

the tax burden is rising year by year, and the business is difficult. Some people are happy and others are worried about caodewang's investment behavior. The American media were elated, and the Washington Post regarded it as a symbol of the return of American manufacturing. However, Cao Dewang's escape from the event touched on some deep-seated contradictions and problems in China's current economy, causing the whole society to worry about the prospects of China's manufacturing industry and make in-depth discussion. According to caodewang,

the real problem facing China's manufacturing industry is not the rise in labor costs we have always thought, because doubling our labor costs still has an advantage over the United States. The real problem comes from other aspects, especially taxes. Caodewang said that China's comprehensive tax burden is 35% higher than that of the United States. In the end, it turns out that setting up factories in the United States can earn more than 10% more than in China

the comparison of the tax burden of Chinese and American enterprises and the heavy tax burden of China's manufacturing industry have always been the pain points of entrepreneurs. Liweiguang, a teacher from Tianjin University of Finance and economics, led a research group to investigate the tax burden of private entrepreneurs and published an article "the real cause of the current economic downturn: death tax rate". The survey found that 87% of entrepreneurs think the tax burden is heavy or heavy. In reality, China's macro tax burden has risen by nearly 10 percentage points over the past five years (from 19.4% to 29.1%). The actual tax burden rate of Chinese enterprises should be close to 40%. Liweiguang said: what does a 40% or 30% tax burden mean for enterprises? It means death, or death tax rate. Because in China, except for emerging industries and finance, the profit margin of most enterprises is less than 10%, and the tax burden of 30% and 40% is sufficient, which can lead to the plight of most eastern coastal processing enterprises, or even loss and bankruptcy. High taxes make it difficult for enterprises to survive. Perhaps this is one of the core keys to the loss of advantages of made in China

the cost rises rapidly, leading to the lack of advantages

the competitiveness of China's manufacturing industry in the world is largely due to the advantages in labor and material costs. However, in recent years, China's competitiveness in cost has begun to decline. From the perspective of labor cost, caodewang believes that the labor cost in the United States is still higher than that in China. The wage cost of blue collar workers is 8 times that of China, while that of white-collar workers is more than twice that of China. This is where China has the advantage. However, the labor cost is only a part of the cost. In the competition of other costs, the United States wins in an all-round way. For example, land is basically free of money (of course, this may be related to the urgent need for investment promotion in Ohio). For example, the electricity price is half of that in China, and the price of natural gas is only one fifth of that in China. In addition, there are 3 points of anti bending fixture, and the anti bending span is 0 ⑶ 00mm. The adjustable bearing and pressure head Φ 10mm can be transported. Due to the limitations of processing inspection rods and adding extension meters, caodewang's glass is directly sold to local American automobile manufacturers, which does not need to cross the Pacific Ocean, let alone the highway in the United States is free. From the above signs, China's manufacturing advantage is indeed suspected of losing, but China's status as a world factory accumulated over the past few decades has not disappeared, and its advantage in providing a complete supply chain in manufacturing has not disappeared, which is unmatched by other countries for a while. Secondly, we have a broad domestic market, which also provides space for the development and expansion of new manufacturing industry. The competitive advantage of China's manufacturing industry is still there, which is embodied in the following aspects

China has become the second largest R & D expenditure country after the United States. According to Deloitte's prediction, the competitiveness of the manufacturing industry will rise in 2020, all of which are high-end technology intensive countries. Why do you say so? From the perspective of the United States, the proportion of high-end manufacturing in the U.S. manufacturing industry accounts for 88%, which is the main force to maintain U.S. economic growth. People have always believed that the return of manufacturing industry in the United States is due to the rise of labor costs in China and the appreciation of the RMB. However, in fact, technology is not the only real factor for the return of manufacturing industry to the United States. Today, China has become the second largest R & D supporter after the United States, and the competitiveness of the manufacturing industry has been greatly improved. The proportion of China's total R & D expenditure in GDP increased from 0.9% in 2000 to 2.09% in 2015. In absolute terms, it increased by almost 700%. To a large extent, China basically has cost comparative advantages, artificial intelligence and other high-tech means, which can greatly reduce work costs and improve work efficiency

the substantial increase of the middle class drives domestic consumption.

according to the data of globalidemography and the State Development Research Center, the number of middle class in China has increased significantly, from 130million in 2006 to 340million in 2016, and to 500million in 2026. China's middle class has surged 162% in the past decade. This large consumer group will drive domestic consumer demand for products

the central government attaches great importance to the real economy and promotes practical reform

on this basis, the development of the manufacturing industry needs a better external environment, including policy environment to support it, so as to rapidly improve its competitiveness and achieve the goal of made in China 2025. The central economic work conference held not long ago also brought policy dividends to the manufacturing LED real economy. The central economic work conference proposed a series of measures to revitalize the real economy, including focusing on improving quality and core competitiveness, insisting on innovation driven development, and expanding the supply of high-quality products and services. Measures also include guiding enterprises to form their own unique comparative advantages, carrying forward the spirit of craftsmanship, and enhancing product competitiveness

like any era in history, the development of all things is full of opportunities and challenges. Although other factors such as the increase of manufacturing costs and high taxes have brought challenges to China's manufacturing industry, the consumption of China's middle class and the national investment in R & D will be driven in the future, And in this way, each load can only reach a certain load. The investment in physical infrastructure will make China more competitive than other Asian countries

is the competitive advantage of China's manufacturing industry losing gradually? Published by the mechanical and electrical industry. If you need to reprint, please indicate the source of the article. For more industry information, please click attention: mechanical and electrical industry

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