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"Colourization" crisis China's manufacturing upgrade solution
Since it successfully took the second place in the global economy in 2010 and became the world's largest exporter and importer, the output value of China's manufacturing industry has surpassed that of the United States, becoming the world's largest manufacturing entity. Since the accession to the WTO, China's equipment manufacturing industry has achieved leapfrog development. With the tide of economic globalization sweeping across the globe, companies are facing competition from similar companies in various countries. The expansion of the market scope has brought more market opportunities and also brought greater market risks. This is for China's manufacturing industry. It is undoubtedly a serious challenge. The manufacturing industry is mixed. As a pillar industry in the light industry sector, China's home appliance industry has achieved leap-forward development in the past 10 years. China has become a major appliance manufacturing country and has played a positive role in promoting China's economic development. An expert who has been engaged in the research of the home appliance industry has provided reporters with a set of data: "In 2001, the scale of Chinese home appliances was less than 200 billion yuan, and reached 96.42 billion yuan last year. In 10 years, the growth rate reached 400%; Industry exports also rose from $7 billion in 2001 to $150 billion in 2010, a 20-fold increase.†Huang Xiaoming, vice president of Midea Group, said, “To measure whether a country’s industry is big or strong, not a certain industry chain. A company or a brand can achieve, but the full performance of the entire value chain competitiveness." Huang Xiaoming expects that in 2020, China's dream from a large home appliance to a home appliance power can be realized. Wang Chao, Vice Minister of the Ministry of Commerce of China, said that China’s participation in the World Trade Organization has undergone profound changes in its position in the global division of labor system for ten years. Wang Chao said that on the one hand, labor-intensive industries are still China's comparative advantages. On the other hand, the competitiveness of emerging industries is increasing. China's share in the global industrial chain is expanding, and the domestic market is growing and becoming a Chinese company. A source of competitive advantage in the world market. For a long time, the relatively low cost of business labor such as China's labor force has created a dominant position in China's low-cost manufacturing industry. However, with the low cost of human resources, the backwardness of related technologies has become a bottleneck restricting the development of China's manufacturing industry. The data shows that the core problem of China's manufacturing industry is low labor productivity and added value. At present, China's manufacturing labor productivity is about 4.38% of the United States, 4.37% of Japan, and 5.56% of Germany. There is still a big gap between quality and developed countries. At the same time, the "sweatshops" and "squeezing workers" that have been repeatedly exploding in recent years indicate that China's manufacturing industry is dominated by labor-intensive industries, and the sharing mechanism is still at a disadvantage. To develop China's manufacturing industry, we must solve the talent problem. The phenomenon of “hollowing†is highlighted. The development of China's manufacturing industry has always been characterized by “two highs and one lowâ€. That is, the manufacturing industry has a high growth rate, a high proportion of GDP, and a low per capita manufacturing value added. This status quo indicates that there is still a lot of room for development in China's manufacturing industry. On the other hand, it also shows that the structural contradictions facing China's next development will be a prominent constraint. Experts in the industry generally believe that although the pace of China's manufacturing industry has attracted worldwide attention, it has shown a "soft rib" in terms of financing costs, labor productivity, R&D investment, raw material costs, and wage costs, which will lead to the phenomenon of "hollowing". Zhou Dewen, president of the Wenzhou SME Development Promotion Association, said that there are three obvious signs of “hollowing†of the industry: first, a large amount of capital fleeing the industry; second, a large number of enterprises are moving out and even developing abroad; third, many enterprises use the industry. The platform obtained bank loans, but did not use special funds, but invested in mines and real estate. At present, the industry's “hollowing†has an expanding trend. In the past few years, the phenomenon of real estate investment and high-interest loans from the real economy in Wenzhou has been transferred to inland provinces. The data show that from 2007 to 2010, among the top 500 Chinese enterprises, the total revenue of manufacturing industry accounted for more than 40%, and the profit amount was only about 30%. The total revenue of the five state-owned commercial banks of “establishment of workers and peasants†was only about 6%, and the profit was only about 6%. The sum accounted for 27%. “This shows that the financing costs of industrial enterprises are high. This continues, people are worried that capital will continue to flow out of the industrial sector and flow to the financial sector.†Rong Rong, researcher of the China Enterprise Alliance, said that there is a huge gap in profit between industrial enterprises and commercial banks and real estate companies. In the long run, China's manufacturing industry will likely have a "hollowing" trend, which is particularly worthy of vigilance. Openness and rules are the way out. For a long time, manufacturing has become a strong industry and has become an important support for China's economy. The 2008 financial crisis has caused China’s foreign trade exports to drop substantially. A few months later, it was the labor-intensive industries, the home appliance industry, the clothing industry, shoes and other labor-intensive industries that supported the recovery of China’s foreign trade exports. In a short period of time, it returned to the growth rate of 10% and 20%. . "We must see that such an industry we are engaged in is always a sunrise industry. As long as we constantly update our technology and constantly build our brand, our manufacturing industry will definitely be a vibrant sunrise industry. So I have always insisted on a point of view, no sunset. The industry is only the technology of the sunset and the management of the sunset.†Long Yongtu, the chief representative of China’s WTO accession negotiations and member of the Boao Forum for Asia Advisory Committee, said. Some experts pointed out that "the manufacturing industry shoulders the mission of stabilizing China's economy and creating employment opportunities. Therefore, under the pressure of China's manufacturing industry, the government should consider giving a tilt in taxation policies. In the past, it was said that large profiters should now advocate large-scale employment. Enterprises with more employment should give some tax-free indicators. In fact, with the rapid development of China's manufacturing industry, global operations have become an inevitable trend and an important strategic choice. Facing the future, China's manufacturing industry still faces many development issues, such as industrial transformation and upgrading, independent research and development of upstream core technologies, and international development of enterprises. Long Yongtu said that in the future, China's manufacturing development path is nothing more than two. According to the WTO rules, one is open and the other is rules.