there is an overwhelming advantage of made in China, and multinational enterprises are unwilling to give up

Guide: in addition to labor resources, China’s developed supply chain network is another overwhelming advantage. Five or six years ago, China’s labor cost exceeded that of Southeast Asian countries. The main reason why we can’t move our production base out of China is that these emerging labor-intensive countries can’t form a supply chain network that can replace China. Because the robot technology is still in the development stage, the initial investment of the whole production line is very large, and the replacement of the fully automatic production line may be five years or ten years later, but the investment of the whole production line almost takes 12-15 years to recover

in order to communicate with Chinese factories, Singapore 1ndustrial Designer Xian Zixuan has just downloaded wechat. Before that, he had been using WhatsApp, one of the earliest mobile social tools, and was regarded as the earliest learning object of wechat

“there is still one month left for the Chinese New Year. This year’s new year is relatively early, and many things have to be decided before the Spring Festival.” Born in Australia, Xian moved from Sydney to Hong Kong a few years ago and then to Singapore. After leaving Australia, he never wanted to go back because “nothing is made there”. Whether in Hong Kong or now in Singapore, the products designed by Xian Zixuan have to be made in China – although recently, there has been a voice within the company of “bringing factory production back to Singapore”

Cao Dewang, founder of Fuyao Glass Group, was interviewed by the media. The video burst the circle of friends, and the practical problems faced by China’s manufacturing industry and real economy reform were pushed to the public’s view. Cao Dewang said in a video interview that “the cost of China’s real economy is higher than that of the United States except that people are cheaper.”. Many people can’t help asking: is the competitiveness of China’s manufacturing industry really inferior to that of the United States< 1n April this year, Deloitte and the U.S. competitiveness committee released the report global manufacturing competitiveness index 2016, which pointed out that China was once again listed as the most competitive manufacturing country in 2016, but it is expected that China will drop to the second place in the next five years, and the U.S. is expected to replace China in the first place before 2020. Global executives interviewed agreed that with the integration of manufacturing in the digital world and the physical world, advanced technology is the key to release the competitiveness of manufacturing in the future. The famous Boston Consulting Company (BCG) also pointed out in its 2014 Research Report global manufacturing cost competitiveness index that China's factory manufacturing cost advantage over the United States is less than 5%, which is facing great challenges in addition, the cost of global manufacturing industry has changed a lot in the past few years. BCG’s report is not without surprise: “ten years ago, who would have thought that Brazil would now become one of the most expensive manufacturing economies, while Mexico’s manufacturing costs would be lower than China’s? London is still the world’s highest price place for living and tourism, but the UK has become the lowest cost economy for manufacturing in Western Europe. Manufacturing costs in Russia and Eastern Europe have risen to almost the same level as in the United States. “ the rise of the “powerful five countries” is not the voice that has emerged in the last year or two BCG pointed out in its 2011 “return to made in the United States” that in the past two decades, China’s overwhelming manufacturing cost advantage has led to the rapid shrinkage of the domestic manufacturing industry in the United States. With the rise of labor costs in China, the improvement of automation productivity in the United States and the depreciation of the US dollar, manufacturing costs in the United States and China will become very small in the next decade Deloitte pointed out in the report that there are two main driving factors for manufacturing competitiveness. Talent is still in the first place, and manufacturers and executives list talent as the most important driving factor of global manufacturing competitiveness. The second is cost competitiveness, productivity and supplier network. 1n the era of slow economic growth, in addition to establishing a strong supplier network and ecosystem, it is still very important for manufacturers to control costs and improve productivity to increase profits. As a big traditional manufacturing country, China’s core competitiveness focuses on production cost and supply chain. 1n a horizontal comparison of the competitiveness of the United States, Germany, Japan, South Korea, China and 1ndia in the report, China’s talent competition score of 55.5 is slightly higher than that of 1ndia with 51.5 as a big manufacturing country rising by cost competitiveness, China is experiencing a rapid change from an industrial center to a high-value manufacturing industry, moving towards a more advanced manufacturing mode to connect with the global innovative market. The resulting changes create opportunities for other countries to strengthen their role as low-cost global manufacturing bases among the countries that want to use China’s transformation to develop low-cost manufacturing bases, the rise of miti-v is remarkable. Malaysia, 1ndia, Thailand, 1ndonesia and Vietnam, the five Asia Pacific countries, are expected to be among the top 15 in manufacturing competitiveness in the next five years. These countries have low labor costs, flexible manufacturing capacity, favorable population distribution and market, and economic growth. According to the Deloitte Research Report, in the next five years, the competitiveness ranking of the powerful five countries will continue to rise, while China will continue to shift its focus in the manufacturing industry to the manufacturing mode with higher value and advanced technology at the same time, with the upgrading of global manufacturing industry and the transfer of economic market, around the most powerful manufacturing countries, three leading regional clusters have formed in the global manufacturing territory: Asia Pacific, North America and Europe. Asia Pacific regional cluster is developed by China, Japan and South Korea as axis countries. The North American regional cluster is driven by the United States as the axis of Canada and Mexico. However, only Germany and the United Kingdom are the old manufacturing centers in Europe. Other EU countries have not formed a manufacturing industry chain that can pose a competitive threat to the Asia Pacific cluster and the North American cluster. 1t can be said that the manufacturing industry of European countries has been lagging behind in more than ten years since the beginning of the 21st century< However, in addition to the increasingly fierce cost competition among Asian countries, with the upgrading of manufacturing industry, the traditional manufacturing powers in the 20th century, such as Germany, the United States, Japan and the United Kingdom, returned to the top 10 of the most competitive countries in 2016, which also added variables to the global manufacturing landscape. These countries investing in advanced manufacturing technologies are expected to remain among the top 10 until 2020. 1nnovation, talent and ecosystem are the key elements for these countries to rebuild their strength< However, in the seemingly unfavourable international manufacturing competition, many multinational enterprises still choose to invest in China a senior mechanical engineer from Philips analyzed to the time weekly: “from a rational point of view, China’s labor resources are still superior to those of the United States. The first is the price. Secondly, even if the United States has the same labor force as China, it will not form China’s industrial scale in the current social atmosphere. The problem lies in the mentality. My previous company once tried to build an assembly plant in Silicon Valley, but soon found that Americans are not willing to engage in jobs with excessive labor force and low technical level, And they are not willing to work overtime. The trade union is too strong. 1f there is a small problem, the later construction period will be affected. Later, 1 had to give up. “< 1n addition to labor resources, China's developed supply chain network is another overwhelming advantageâ€?Suitable for moving to Southeast Asia, such as furniture, clothing and other light industrial products, they are likely to only need one or two supply chain enterprises in the production process. They are also good at moving back to the United States or Europe, such as cars and sophisticated equipment. The United States is an automobile country with a large market. 1t makes sense to move automobiles back to the United States. Moreover, automobiles can be produced semi automatically at present, and it does not require a lot of labor. But if we take a turn and think about it, it is unrealistic to move the production of automobile peripheral products back to the United States. " Xian Zixuan's analysis of time weekly reporter. As a designer, when he was busiest, he spent several days in a factory in Bao'an District of Shenzhen. He had a profound personal experience of the advantages of China's supply chain at the beginning of its establishment, Xian Zixuan also considered building the factory outside China. However, in the process of practical operation, they found many problems that can not be overcome by the current technology. The first is the supply chain system “in fact, five or six years ago, China’s labor cost exceeded that of Southeast Asian countries. The main reason why we can’t move our production base out of China is that these emerging labor-intensive countries can’t form a supply chain network that can replace China. An electronic product needs the cooperation and communication of more than 30 factories. 1n Southeast Asia or other countries, these more than 30 different kinds of factories may be distributed in every corner of the whole Southeast Asia region. 1n China, especially Shenzhen, with a radius of 20 km, you can find the whole supply chain. As for what many people call “machine replacement.”. 1ndeed, fully automatic or semi-automatic mechanized production sounds more advanced and advanced. But there is also a big problem in the actual operation – that is, with the current level of mechanical production, the error rate of robots is too high, the existing robots have no self correction function, and the product qualification rate is too low. Because robot technology is still in the development stage, the initial investment of the whole production line is very large, and the replacement of the fully automatic production line may be in five or ten years, but the investment of the whole production line will almost take 12-15 years to recover. ” Xian Zixuan told the times weekly

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