How Much Influence Will China Lose On The World Factory?

In recent days, the financial circles have been discussing a topic: is China still a factory in the world? A lot of well-known foreign-funded enterprises have been camping in China, and "made in China" is all over the world.

However, in recent years, manufacturing in China is losing competitiveness. China's wage level has increased substantially in the past 10 years. The average wage of manufacturing industry is higher than that of most Southeast Asian countries and South Asian countries. The labor cost advantage has become a past event.

For example, in 2000, 40% of Nike sports shoes were made in China and 13% made in Vietnam.

By 2013, manufacturing in China accounted for only 30%, while Vietnam made 42%.

Because "world factory" and "cheap labor" can almost be equal.

International experience shows that if middle income countries succeed in striding across the "middle income trap" and "high income wall", the productivity level of the industry must be continuously promoted.

To abandon the "world factory" of cheap goods such as clothing and toys used in the past, efforts must be made to pform higher value manufacturing industries such as automobiles, airplanes and electronic products.

Just like our country "

The 10 year plan put forward the pformation from a big manufacturing country to a manufacturing power, and promoted the quality of products to the United States and Europe.

This will not only benefit the ordinary people, but also optimize China's economic and industrial institutions and enhance the driving force for economic growth.

In my opinion, China loses.

The title is not a bad thing.

On the contrary, this is the only way for China to develop into a strong manufacturing country.

In this process, we have to do two things well.

On the one hand, while gradually getting rid of the "cheap labor force", we must improve labour productivity.

The results of the Oxford Institute of economic research show that the cost of labor in China's manufacturing sector is now approaching the US, but labor productivity is only 1/4 of that in the US.

With the rise of China's industrial costs, especially the increase of labor costs, low-income developing countries are vigorously developing labor-intensive industries and revitalization of developed countries.

If China's manufacturing industry does not speed up its productivity growth, it will face two directions: high-end and low end.

On the other hand, we are concerned about the demand and potential of domestic consumer groups.

China's consumer groups have been formed, the middle income group has risen rapidly, and has become the world's fastest growing and huge consumer market.

Therefore, how to excavate the potential of "world wallet", let it not flow into the field of foreigners, and march toward the "world office" will be an urgent problem to be solved in the 10 year plan of "China made 2025".