There was a time when, thanks to cheap labor costs and attractive preferential policies, Chinese manufacturing enterprises experienced Tablet PC wholesaler a long period of time the boom of foreign orders. In those glory days, many people are convinced that accession to the WTO, won a huge development opportunities for China. And because of positive embrace of globalization, China's strong growth in the manufacturing sector for China to win the "world factory" reputation. However, a severe contraction in world economic crisis China exports, a large number of "three" companies have closed down.
Chinese manufacturing environment deterioration
In order to boost China's economy, China in November 2008, the Government launched a 4 trillion investment policy, and the actual investment from 2008 to 2010 as much as 30 trillion. However, the huge Government stimulus did not improve the living environment of Chinese manufacturing enterprises, has failed to exert effects on structural problems of China's economy. Beginning in 2012, China's economic growth eased to a "new normal".
The "new normal" of China, manufacturing enterprises are facing tremendous pressure. This pressure not only from weak export demand, and competition from Southeast Asian manufacturing, domestic is plagued by land, labor and other costs are rising. Beginning in 2012, China's export growth began to slow, according to the General Administration of customs figures in January 2016, China's exports fell 11.2%. Increase in global trade is shrinking and weakening external economic context, China's exports are expected to weaken further.
However, China's domestic manufacturing costs have continued to rise. United States Boston Consulting Group (BCG) report, "China's manufacturing to the United States cost advantage has gone from 4% in 2004 to 14% in 2014, meaning that the same production, in the United States only 4% more expensive than in China. "In 2012, Chinese manufacturing labor costs are the Viet Nam and India's 147% and 138%. According to United Kingdom Economist Intelligence Unit forecast, by 2019 the data will grow to 177% and 218%. In terms of taxes, lower taxes should not be the absence of promulgated by the CICC steady growth and structure, said 2014 macro-tax burden in China reached 37%, have exceeded the level of developed countries (average between 30%~35%). As a non-welfare State, China's tax burden is significantly high.
In early 2015, Microsoft announced its decision to Nokia in Beijing and Dongguan phone factories to move to Viet Nam. Prior to this, Panasonic, sharp, Nike, Samsung, FUNAI electric, foreign-funded enterprises are accelerating production from China moved to Southeast Asia and India. Foreign investments, in large part, that is because manufacturing costs in China have been less competitive. However, there are a number of foreign-funded enterprises choose to adhere to, and even increased localization efforts, such as Apple, Schneider Electric, Dell. Why would stick to Schneider Electric's global Executive Vice President and President of China Zhu Hai, told reporters there is a feeling: "because I am Chinese, and Schneider Electric are good at intelligent manufacturing solutions for China's manufacturing industry. Therefore, I feel that this is my personal and corporate responsibility. ”
For foreign investments, Minister of Commerce, Gao Chenghu, had a different view. He said that "foreign investments surge this phenomenon does not exist. 2014, 2015 our foreign investment is on the rise. " Indeed, in 2015, China's actual use of foreign investment (FDI) of 781.35 billion yuan, an increase of 6.4%. Judging from FDI into the industrial sector, however, since 2004 B2B Marketplace Efull, FDI in China started from the second to the third industry transfer. According to the Jilin University and Dr Liu Yuna Yang liguo finance research shows that FDI promotes the development of tertiary industry in the long run, however, the FDI in the tertiary sector there is crowding out effect, which in the long term but is detrimental to the healthy development of the industry. In the tertiary sector, FDI is more unstable. FT Chinese website has published an article to remind, "since the beginning of 2006, FDI trend is more obvious in fixed assets, in addition to the financial and real estate transfer, second industrial FDI enterprises is no longer substantial acquisition of fixed assets, but the way lease production. "This means that" a huge amount of FDI has proceeded to layout their divestment roadmap the, just waiting for the time for action. " Behind the trend, exposed China's manufacturing environment is deteriorating.