The current situation of China's manufacturing industry is facing three major problems that are not optimistic.
Release time:
2021-01-29
In the division of labor chain of the world industry, the link that belongs to China is the manufacturing industry, which itself is an industry with a great demand for natural resources, coupled with low utilization efficiency, resulting in the rapid consumption of natural resources in the process of economic development. The rising price of international primary products market has brought more and more pressure to China's manufacturing market which wins by low cost.
Dr. Wang Xiwen, director of the Electronic Commerce Research Institute of the International Economic and Technical Cooperation Center of the Ministry of Industry and Information Technology, has worked in the field of industry and information technology for more than 10 years. He analyzes the disadvantages of China's manufacturing industry in this way:
Although China is already a big manufacturing country, the manufacturing industry is "big but not strong", and there is still a big gap with the manufacturing power. There are many problems, some of which are fundamental, and the most important are three major problems:
1. industrial structure is unreasonable.
From the perspective of production, the unreasonable industrial structure of China's manufacturing industry is manifested in structural and regional overproduction at a low level, as well as high consumption and high cost of enterprise production. Specifically, many important industries have a high degree of dependence on foreign technology, weak independent development capabilities, and difficult to adapt to fierce international competition; many industries have serious overcapacity. In 2013, the national industrial capacity utilization rate was 79%, and backward production capacity accounted for 15% to 20%.
With the rapid expansion of China's foreign trade scale, the binding force of external market demand has risen significantly, and the terms of trade of low-grade products and primary products have been deteriorating in the long run. The export pattern dominated by labor-intensive products will not have much room for growth in the future.
The added value of 2. products is not high.
For a long time, most Chinese companies have adopted OEM production methods, which are at the middle and low end of the global value chain. Product design, key components and process equipment mainly rely on imports. Even for products that occupy a certain share in the international market, Chinese manufacturers are more in the assembly and manufacturing links, and generally do not master the core technology. Key components and key technologies mainly rely on imports.
Due to the low added value, Chinese products make little profit. At the end of 2011, American scholars released a report entitled "capturing profits of Apple's global supply network". A study on the profit distribution of iPhone mobile phones showed that in 2010, for every iPhone sold by Apple, it occupied 58.5 per cent of the profits, while workers in mainland China earned only 1.8 per cent of the profits. It is precisely because there is no technological advantage in the value chain, despite the strong labor, what is obtained is the lowest and very few meager profits.
3. energy consumption, serious pollution.
China is the world's largest manufacturing country. In 2013, the country's primary energy consumption was nearly 3.75 billion tons of standard coal, accounting for 21.3 percent of the world's energy consumption and creating 11.6 percent of the world's GDP. At present, China's chemical oxygen demand, nitrogen oxides, sulfur dioxide, ammonia nitrogen, etc. and carbon dioxide emissions rank first in the world. Smog, water pollution, and excessive soil heavy metals have become social hazards.
In the division of labor chain of the world industry, the link that belongs to China is the manufacturing industry, which itself is an industry with a great demand for natural resources, coupled with low utilization efficiency, resulting in the rapid consumption of natural resources in the process of economic development. The rising price of international primary products market has brought more and more pressure to China's manufacturing market which wins by low cost.
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