Changes in industrial pattern have deeply affected the development of China’s manufacturing industry

At present, the international economic, technological, cultural, security and political landscape is undergoing profound adjustments. The change of the development trend of the global manufacturing pattern has a significant impact on the development of China’s manufacturing industry.

First, changes in the factor endowments of various countries promote the continued development of the “wild goose formation model”.

The famous “Flying geese pattern” reveals the characteristics of the cascade transfer of labor-intensive industries from developed countries to less developed countries and least developed countries. Developed countries, with the highest level of development, are the main driving force for industrial transfer between countries. With the rising cost of production factors, developed countries gradually lose their advantages in labor-intensive industries, thus promoting the transfer of labor-intensive industries to lower-cost developing countries.

At present, the “wild goose formation model” continues to develop among developing countries. Driven by the development of labor-intensive industries, the economy of developing countries continues to grow, the wage level of labor continues to increase, and the advantage of low-cost labor will gradually weaken, thus promoting the transfer of labor-intensive industries to lower-cost developing countries, which is the general trend of the global transfer and distribution of labor-intensive industries under the current level of technology.

Since the reform and opening up, especially since the accession to WTO, China has followed the trend of international industrial division change and industrial transfer, made full use of labor force advantages to undertake international industrial transfer, and become an important production and export base of labor-intensive industries and links in the world. As China’s economy continues to maintain medium-high growth and residents’ income levels continue to increase, the cost advantage of labor is gradually weakening. If the efficiency of “machine replacement” and the capital intensity of labor-intensive industries do not significantly improve, then China’s labor-intensive industries and labor-intensive links in the value chain will also be transferred to low-cost developing countries.

FBM201D

It should also be noted that the improvement of the income level of Chinese residents means the further expansion of domestic demand, which will promote the continuous growth of demand for higher quality and higher performance products and services, which will become an important driving force to promote the upgrading of China’s manufacturing industry. In particular, the role of domestic large circulation continues to emerge, will increase the attraction of international industrial capital, so as to further promote the continuous improvement of the development level of China’s domestic capital, technology and knowledge-intensive manufacturing industry.

Second, the deepening of the new scientific and technological revolution will intensify global competition in high-tech fields.

Strategic emerging industries and future industries represent the development direction of the industry and have huge development potential, which is directly related to a country’s future economic growth and its voice in the global industrial division of labor system. If we seize the opportunity of a new round of scientific and technological revolution and industrial change to achieve breakthroughs in strategic emerging industries and future industries, then the latecomer countries will further narrow the gap with the developed countries, on the contrary, the latecomer countries will spend a greater cost to achieve catch-up in the high-tech field. Therefore, in order to consolidate their position in the high-tech field, developed countries not only pay close attention to the layout of science and technology and industrial development, but also step up the suppression and containment of late-developing countries.

As a key part of the global industrial chain supply chain, the intensification of external competition will certainly form pressure and challenges for the development of China’s related industries, but it can also force relevant enterprises to find new sources of supply in the domestic market, which provides China’s high-tech new products in the application of continuous improvement and perfection of the market space.