1. Friday May 25, 2018
      Home > News > Economy
      Text:| Print|

      China's manufacturing needs high-tech edge

      2012-02-03 15:49 China Daily     Web Editor: Xu Aqing comment

      China's long-held, low-cost manufacturing advantages are dwindling and it must make greater inputs into innovation.

      Manufacturing has played a key role in the growth of China's economy. In 2010, China's manufacturing output accounted for 19.8 percent of the world's total, slightly higher than US manufacturing's 19.4 percent. Statistics from the United Nations show that the output of China's manufacturing reached $2.05 trillion last year under the early 2011 exchange rate, compared with the $1.78 trillion of the United States.

      Despite this, "made in China" still lags behind the US in terms of its wealth creation capabilities. Statistics show that China's manufacturing productivity and value added are about 4.38 percent of the US', 4.37 percent of Japan's and 5.56 percent of Germany's. China had only 17 of the world's 500 most influential manufacturing brands in 2010. Lying at the middle- and low-end of the world's manufacturing chain, China's exports are mostly low-technology, low value-added products, while its imports are high-tech, high value-added products.

      China's export momentum has primarily been driven by quantity expansion. The country's export model, which is dominated by the processing trade, has caused a large volume of transferred trade within its borders. In fact, the biggest contributors to its trade surplus are China-based transnational corporations. In the last 10 or so years, the country's mushrooming foreign trade has to a large extent been driven by foreign-funded enterprises, which have in particular played a very important role in its exports. Take 2008 as an example. In that year, China's export surplus was $295.4 billion, of which $170.6 billion, or 57.7 percent of the country's total trade surplus, was created by China-based foreign-funded enterprises,.

      Due to their relatively low resource prices, the marginal productivity of capital in China and other developing nations, a ratio used to measure the additional output resulting from the use of an additional unit of capital, is usually higher than in developed nations. According to a survey conducted by the World Bank of 12,400 enterprises across 120 Chinese cities, the average net assets return ratio of China's industrial enterprises exceeded 15 percent in 2005, while the ratio for private enterprises was 19 percent and for foreign-funded enterprises it was 22 percent. Such a high capital return ratio stems from a long-time distortion in the country's labor prices. Compared with a faster-growing capital return ratio, China's labor remuneration has shown much slower growth in recent years. From 1998 to 2008, the country's industrial enterprises achieved an average growth in profits of 30.5 percent year-on-year, far higher than the 9.9 percent growth in its labor remuneration.

      Given that there is not too much space for boosting the growth of its middle- and low-end manufacturing, China should try to press for the transition to high-end manufacturing.

      Still mired in the consequences of the global financial crisis, the US has accelerated a review of its industrial structure, as indicated by President Barack Obama's vow to get back the "lost American manufacturing" from China. According to an estimate made by the Boston Consulting Group, about 15 percent of China-based US enterprises will go back to the US from China in the next five years amid the rapid rises in China's labor prices and Washington's expedited efforts to reverse the trend for outsourcing, a tendency that emerged about a decade ago, especially with regard to electronics, appliances, furniture, plastic, rubber and metal products and computers, which account for 70 percent of the US' imports from China and cost US consumers about $2 trillion every year.

      In an era when the global manufacturing pattern is undergoing drastic changes, the US' future competitive advantage will undoubtedly come from the rejuvenation of its manufacturing sector.

      What will such an increased US manufacturing edge mean to China?

      With the expected rises in China's labor costs as well as the yuan's appreciation and its resources and environmental bottleneck, China's long-held low-cost advantages in the manufacturing sector are ebbing away. The possible "double lose" of both high-end and low-end manufacturing advantages will be a big challenge to China in the decade ahead if the country fails to set up a solid foundation for innovation and successfully raise productivity as soon as possible.

      China has no reason to delay its efforts to increase its input into research and development and innovation, which will facilitate its transformation into a technological power.

      Comments (0)

      Copyright ©1999-2011 Chinanews.com. All rights reserved.
      Reproduction in whole or in part without permission is prohibited.

      主站蜘蛛池模板: 99爱免费观看视频在线| 国产精品免费AV片在线观看| 亚洲中文字幕无码一区二区三区 | 亚洲av专区无码观看精品天堂| 成人午夜18免费看| 一级毛片完整版免费播放一区| 亚洲AV无码成人精品区蜜桃| 97视频热人人精品免费| 无遮挡国产高潮视频免费观看| 亚洲a在线视频视频| 国产无遮挡又黄又爽免费视频| 日本在线看片免费| 亚洲丶国产丶欧美一区二区三区| 亚洲欭美日韩颜射在线二| 好男人www免费高清视频在线| 天黑黑影院在线观看视频高清免费| 精品亚洲AV无码一区二区三区 | 最近的中文字幕大全免费版| 中国黄色免费网站| 亚洲另类无码专区首页| 婷婷久久久亚洲欧洲日产国码AV| 又粗又大又长又爽免费视频| 国产黄色免费网站| 99精品视频在线观看免费| 亚洲AV无码XXX麻豆艾秋| 1区1区3区4区产品亚洲| 久久久亚洲精品蜜桃臀| 免费看的黄色大片| 日本免费一区二区三区| 亚洲高清免费视频| 亚洲av中文无码字幕色不卡| 久久久久亚洲av无码专区 | 亚洲AV成人精品日韩一区| 中文字幕在线观看亚洲| 亚洲精品蜜桃久久久久久| 国产精品免费小视频| 国产福利在线观看免费第一福利| 国产免费拔擦拔擦8X高清在线人| 日韩在线视频播放免费视频完整版| 亚洲av午夜精品无码专区| 亚洲精品中文字幕乱码影院|