How to break through the most popular made in Chin

How can "made in China" break through

in his third state of the Union address during his term of office, Obama issued the campaign slogan of revitalizing the U.S. manufacturing industry, and said that he would promote the return of manufacturing enterprises to the United States with preferential tax policies. In fact, this is not the first time Obama has made such a slogan. As early as November 2009, he issued a statement that the US economy should implement the Reindustrialization strategy and shift to export driven growth and manufacturing growth. This change is naturally not good news for China's manufacturing industry. However, whether the manufacturing industry is revitalized or reindustrialized, it is easier said than done for the United States at present. Because compared with the United States, the overall competitive advantage of made in China, especially in the middle and low-end manufacturing industry, still exists, and it should not change much in the short term, although this competitive advantage is also facing some medium - and long-term trend challenges. Therefore, in the next three to five years, the strategic shift of the United States should not pose a huge challenge to China's manufacturing industry

first, after the subprime mortgage crisis, the unemployment rate in the United States has been high at more than 9% for a long time, and the labor supply is relatively loose. However, due to the stickiness of wages and strong labor force, its labor cost is still very high, which is far from comparable to the huge low-cost surplus labor force in China's booming urbanization process. China's urbanization rate of 51.27% in 2011 is far from the average level of more than 70% in developed countries in Europe and the United States. Moreover, due to the fine tradition of hard work, Chinese employees engaged in low-end manufacturing are often very diligent, and they are more adaptable and tolerant to long-time, high-intensity and overtime work. Of course, this is not to encourage overtime, but to clarify a current situation

second, China has a huge pool of skilled technicians and engineers. Although the quality is mixed, China trains about 600000 engineers every year, which is sevenoreight times that of the United States. Take Foxconn, the contract manufacturer of apple, for example. It has about 5000 resident engineers, who are responsible for ensuring the top quality of Apple's electronic products, which is unimaginable in the United States. At present, China is implementing a large-scale excellent engineer education and training program aimed at improving the quality of engineer training, which is characterized by the joint training of colleges and universities and industrial enterprises, and will likely promote the transformation of existing quantitative advantages to quality advantages

third, the manufacturing industry, especially some high-end manufacturing industries, has the characteristics of industrial clusters, which requires a relatively clustered complete supply chain and industrial chain ecology. This interconnection, reciprocity, interdependence and interaction among many enterprises is not achieved overnight. In addition, in order to attract supporting industries to settle, the Chinese government, especially local governments, often give comprehensive support in tax policies, plant land, subsidy policies and other aspects, which is difficult for the American government to achieve. In the short term, the United States is unlikely to quickly establish industrial clusters comparable to China

although the realization of the Reindustrialization or manufacturing Revitalization Strategy of the United States has yet to be tested by time, and the impact on made in China in the short term is limited, because the world economy is still in the midst of uncertain shock adjustment, the road of economic recovery is not smooth, and various countries have also sacrificed various forms of trade protectionism, The external economic environment faced by made in China, which has benefited from global economic integration and an open international trading system for a long time, is worrying. At the same time, the pressure of RMB appreciation and the test of bottleneck factors such as population, resources and environment faced by China itself are also causing manufacturing in China to encounter more and more intense competition from other emerging economies in providing low-cost elements with comparative advantages. The transfer of manufacturing capacity to Southeast Asia, Africa, Eastern Europe and other regions outside China, as well as North America, Mexico, South America, Brazil and other countries has begun

according to the data from the people's Bank of China, the central parity rate of the RMB against the US dollar appreciated by 5% in 2011. According to rough calculation, since the first RMB exchange rate reform in July 2005, the cumulative appreciation of the RMB against the euro, the US dollar and the yen has reached 15.6%, 21% and 6.2% respectively, and these three markets are China's top three trading partners and the main destination of made in China. Moreover, the RMB appreciation trend will continue, which is the external pressure that made in China needs to continue to face. However, there is also a good side to this, which is to promote the transformation of China's economy from export-oriented to domestic demand oriented

accompanied by the appreciation of RMB, the relative surplus of population, resources, environment and other essential resources, which has long been the prerequisite for supporting the extensive development of made in China and even China's economy, is gradually shrinking into tight constraints. In particular, China's long-term demographic dividend is gradually diminishing. According to the "changes in China's total population and structure in 2011" released by the National Bureau of statistics at the beginning of the year, in 2011, the proportion of China's working age population fell for the first time since 2002. Moreover, unlike the decline in both the proportion of working age population and the absolute number of population in Japan's history, China's downward change in the proportion of working age population is accompanied by the expansion of both the absolute number of population and the size of the population that society needs to support

China's Countermeasures

China needs to break through on the road from a large manufacturing country to a powerful manufacturing country. It is urgent to reverse the factor driven development mode, solve the long-standing and increasingly prominent problems such as low industrial added value, high resource consumption, non friendly environment, and fewer innovative products with independent intellectual property rights, and realize the transformation to an efficiency driven and innovation driven development mode. Of course, this is also the meaning of China's economic transformation under the situation of great changes and adjustments in the world today

then, how to promote the transformation of manufacturing in China from factor driven development mode to efficiency driven and innovation driven development mode

through the mechanical barrel

from the macro external institutional environment, the transformation of this driving force is accompanied by the reasonable displacement of the boundary between the government and the market, allowing the market to play a more and greater role in resource allocation. Because the real sustainable efficiency and innovation are formed by the market, not by the strong intervention of the government. The latter is precisely the characteristics of China's current economic model and the root of many deep-seated contradictions and problems in China's current economic development. Worryingly, this government led development model, the so-called China model, has a tendency to be affirmed and solidified as an experience

the author believes that there is no so-called Chinese model, only the Chinese path or at most the Chinese experience, whether from the perspective of the similarity of the ultimate goal, the differences of the transition path or the commonality of the reasons for success. With market economy, society ruled by law, and democratic politics as the goals of transformation and development, and the six characteristics of a harmonious society, democracy and the rule of law, fairness and justice, honesty and fraternity, vitality, stability and order, and harmony between man and nature as the test indicators, the so-called Chinese model is still far from being a mature model in the ultimate sense, It is still in the process of molding and optimization

as two indispensable basic elements in modern market economy, government and market play different roles in promoting economic development and social progress. Undeniably, compared with the governments of mature market economy countries, the governments of late developing transition countries still have some special development attributes and strong positions. However, with the improvement of economic level, the government led economic development model as a transitional arrangement will be accompanied by huge negative effects. The transformation of the driving force of China's economic development must change this pattern of strong government controlling the market, and create a free market competition system environment conducive to improving efficiency and stimulating innovation by reasonably defining the boundary between the government and the market, minimizing industrial monopoly, administrative intervention and market access restrictions

How can made in China break through

how to reasonably define the boundary between the government and the market? The key is to realize two fundamental changes in government functions, that is, from a development-oriented government competing for interests with the people to a public interest service-oriented government, from an all-round government with too much administrative intervention to a limited government that allows the market to give full play to its role, so as to achieve inaction and scientific development. This is the Enlightenment of the theories of free-market economists such as Adam Smith and Hayek. We can also find the ideological source from the Sinology wisdom of ancient Chinese sages. For example, Sima Qian once said in his biographies of historical records, the good should be good for it, followed by the right way, followed by the teaching of current multiple protection devices, followed by the tidiness, and the lowest citizens can also check and compete at any time. This is a philosophy of government governance that is worth learning from today

from the perspective of micro industrial development trend, China should further strengthen the integrated development of manufacturing industry and service industry, and develop producer services in a targeted manner. The characteristics of the error caused by the above two factors are that it affects the large business industry with a small load. This is an effective way to quickly improve the quality and competitiveness of Chinese manufacturing from the perspective of efficiency drive and innovation drive. The new economic growth theory in modern economics believes that the external effects of human capital, technology and knowledge innovation, as well as the function of market division of labor, have led to the increasing return to scale growth of the economy, and the main creation, transmission and diffusion departments of the external effects are undertaken by the productive service departments

first of all, from the perspective of social division of labor and transaction costs, with the expansion of the market scope of manufacturing industry, the existence of more specialized and fully competitive productive service departments is conducive to reducing manufacturing costs and transaction costs, and further improving the efficiency of manufacturing industry. Adam Smith's thought about division of labor to improve labor productivity still shines with wisdom today

secondly, from the perspective of the upstream and downstream composition of the value chain, the upstream R & D, product design and downstream logistics, finance and other productive services can integrate more technical and knowledge elements into the original intermediate production and manufacturing links, improve the intensification of production methods and production processes, promote the extension of manufacturing industry 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 and output, productive services gather a large number of human capital, intellectual capital and technological capital. Its input into manufacturing will make the output of manufacturing contain more unique elements that are differentiated and difficult to imitate, thus having core competitiveness. It is an important source of manufacturing innovation and obtaining new sustainable competitive advantages

some of the latest empirical research results in the international economic community also show that the development and innovation of producer services in both developed and developing countries can greatly promote the transformation and upgrading of manufacturing, the improvement of total factor productivity and the improvement of international competitiveness. Therefore, promoting the development and innovation of producer services is of great significance to China's progress from a manufacturing power to a manufacturing power, as well as to improve its independent innovation capacity and build an innovative country