How Does "Made In China" Suddenly Become A New Force?

In his third state of the Union address, Obama issued a campaign slogan to revive the manufacturing industry in the United States, and he said he would use it as an electioneering slogan.

First, after the subprime mortgage crisis, the unemployment rate in the United States has been over 9% for a long time, and the labor supply is relatively loose. However, due to wage stickiness and strong labor force, its labor cost is still very high, far from being comparable to the huge and cheap surplus labor force in the ascendant urbanization process in China.

China's urbanization rate in 2011 was 51.27% higher than that of the developed countries in Europe and the United States, which is more than 70%.

Moreover, because of the fine tradition of hard work, China's workers engaged in the low-end manufacturing industry are often very diligent, and are more adaptable and tolerant to long hours, high intensity and overtime work.

Of course, this is not to encourage overtime, but to clarify a situation.

Second, China has a large number of highly skilled technicians and engineers.

Despite the uneven quality, China has trained about 600 thousand engineers every year, seven or eight times that of the United States.

Take Apple Corp's foundry factory Foxconn as an example. It has about 5000 factory engineers and is responsible for ensuring the top quality of Apple electronics. This is unthinkable in the United States.

At present, China is carrying out the "excellent engineer education and training plan" aimed at improving the quality of engineers training, which is characterized by the joint training of universities and industry enterprises. It will promote the pformation of existing quantitative advantages to quality advantages.

Thirdly, manufacturing industry, especially some high-end manufacturing industries, has the characteristics of industrial clusters. It needs a relatively integrated supply chain and industrial chain ecology.

The interconnection, reciprocity, interdependence and interaction between such enterprises are not achieved overnight.

Moreover, the Chinese government, especially the local governments, will give full support to tax policies, plant land and subsidy policies in order to attract supporting industries. This support is hard for the US government to blame.

In the short term, it is unlikely that the United States will quickly establish an industrial cluster that can be compared with China.

Although the implementation of the Revitalization Strategy of the US Reindustrialization or manufacturing industry remains to be tested by time, the impact of "made in China" is limited in the short term. However, because the world economy is still in an uncertain shake adjustment, and the road of economic recovery is not smooth enough, various countries have resorted to various forms of trade protectionism, which makes the external economic environment facing long-term benefits from global economic integration and opening up the international trade system "made in China" are worrying.

At the same time, the pressure of RMB appreciation and the bottlenecks of population, resources, environment and other bottlenecks in China are also making the "made in China" encounter more and more intense competition from other emerging economies in providing low cost elements with comparative advantages. The pfer of manufacturing capacity to Southeast Asia, Africa, Eastern Europe and other regions outside China, as well as the North American Mexico, South America, Brazil and other countries has begun.

Data from the people's Bank of China show that in 2011, the yuan was against the US dollar.

With the appreciation of the renminbi, it has long supported "made in China" and even China.

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China's Countermeasures

China should break through the path of moving forward from a big manufacturing nation to a manufacturing power. It is imperative to reverse the development mode driven by factors and solve the problems that exist for a long time, such as low industrial added value, high consumption of resources, unfriendly environment, and less innovative products with independent intellectual property rights, so as to pform the development mode of efficiency driven and innovation driven.

Of course, this is also the proper meaning of China's economic pformation under the great changes and adjustments in the world today.

So, how can we promote the pformation of China's manufacturing driven from factor driven development mode to efficiency driven and innovation driven development mode?

From the macroscopic external institutional environment, the pformation with this driving force is accompanied by the reasonable displacement of the boundary between the government and the market.

The author believes that there is no so-called "Chinese model" either from the similarity of the ultimate goal, the difference of the path of pition or the reason for success, but only the "Chinese path" or the most "Chinese experience".

Taking market economy, rule of law society and democratic politics as the goal of pformation and development, taking the six major characteristics of a harmonious society, namely democracy, rule of law, fairness and justice, sincerity and friendliness, vitality, stability and order, and harmony between man and nature as indicators, there is still a big gap between the so-called "China model" and the ultimate goal and detection target.

As modern

How does "made in China" break through?

How to reasonably define the boundary between the government and the market? The key is to realize the two fundamental changes in government functions, namely, from the development oriented government to the people and serving the public interest.

From the micro industrial development trend, China should further strengthen the integration development of manufacturing and service industries, and develop producer services in a targeted way. This is an effective way to rapidly upgrade the quality and competitiveness of China made from the two perspectives of efficiency driven and innovation driven.

The theory of new economic growth in modern economics holds that the external effects of human capital, technology and knowledge innovation, and the function of market division network function have led to an increase in scale returns of the economy, while the main creation, pmission and diffusion sectors of external effects are borne by the producer services department.

From the point of view of social division of labor and paction costs, with the manufacturing industry

Secondly, from the value chain, the upstream research and development, product design and downstream logistics, financial and other productive services can integrate more technical and knowledge elements into the original intermediate production links, improve the production mode and the intensive process of production process, promote the manufacturing industry to extend to the upstream and downstream of the value chain, and expand the scale of high-end and advanced manufacturing industry.

Thirdly, from the perspective of capital composition and input production, producer services gather a large amount of human capital, intellectual capital and technical capital. The input to manufacturing industry will make the output of manufacturing industry contain more differentiated elements, and it is difficult to imitate and have the core competitiveness of the unique elements. It is an important source of manufacturing innovation and new sustainable competitive advantage.

The latest empirical research results in international economics also show that the development and innovation of producer services in developed countries and developing countries can greatly promote the pformation and upgrading of manufacturing industry, the improvement of total factor productivity and the enhancement of international competitiveness.

Therefore, promoting the development and innovation of producer services is very important and crucial for China to move forward from manufacturing power to manufacturing power, as well as to improve the capability of independent innovation and the national development strategy of building an innovative country.

Of course, the key to the pformation of China's manufacturing industry from large to strong, from low to high, depends on the role of the market and the role of entrepreneurs.

Only by fully developing the private economy and allowing private enterprises and non private enterprises to compete fully can entrepreneurship really play a role.

Apple Corp is a vivid example. It is not merely meeting the needs of the market, but changing the consumer preferences to create market demand. This is the power of innovation and entrepreneurship. It is also the power to fully cultivate China's economic pformation.