China is closely connected with the global industry, and the manufacturing center position is firm

SSA-T8028-0652 P0973LN Since the reform and opening up, especially after joining the World Trade Organization, China has accelerated its integration into the world division of labor system, and the manufacturing industry has been continuously upgraded, becoming the only country in the world with a complete industrial production system. Its trade in goods and production scale have long ranked first in the world, and it has been listed as the three major hubs of the global industrial chain with North America and Europe. In the first quarter of this year, manufacturing exports grew by 13.4% and imports by 7.5%, further elevating China’s economic position in world trade. Especially under the current conditions of global inflation, the international market needs more high-quality and inexpensive products from China, and China’s position as a global manufacturing center is firm.

SSA-T8028-0652 P0973LN In recent years, some labor-intensive enterprises have moved to Southeast Asia, South Asia and other regions with lower costs, and some people are worried about China’s industrial development prospects. On the surface, this transfer will lead to a reduction in exports of some of our products. However, from a deep level, the connection between our economy and the world will be deeper, and our position as a global manufacturing center will be further consolidated. Although factors such as rising labor costs have prompted labor-intensive industries to move to countries with lower costs, it also reflects the continuous improvement of China’s manufacturing level.

SSA-T8028-0652 P0973LN

SSA-T8028-0652 P0973LN At the same time, with the deepening of the industrialization process, China’s industrial system is increasingly sound, the industrial structure is rapidly upgraded, the level of production and manufacturing has been greatly improved, and more high-end manufacturing is being transferred. In recent years, although some countries have undertaken some of China’s labor-intensive industries, their imports of intermediate products from China are also growing, objectively accelerating the pace of China’s industrial upgrading, and improving China’s position in the global industrial chain value chain. The comparative advantage of China’s economic development is undergoing profound changes, and the outward transfer of labor-intensive industries will help us concentrate limited resources in higher value-added production links, forming a new and higher level of comparative advantage.

SSA-T8028-0652 P0973LN Since the outbreak of the international financial crisis in 2008, some countries have adopted various measures to encourage the return of manufacturing. However, due to the lack of an environment for the development of the whole industrial chain of manufacturing, this reflux progress is slow. And from the law of industrial economic development, the realization of this reflux also needs to pay a high cost. Therefore, some countries to encourage the return of manufacturing will not shake China’s position as a global manufacturing center. In the Sino-US trade friction, the US tariffs on Chinese products have not had much impact on Chinese enterprises and exports to the US, and the US market’s “just demand” for “made in China” is growing. According to a report released by Moody’s, about 93 percent of the cost of tariffs has been “absorbed” by the United States itself, and Chinese exporters have borne only 7 percent of it. In recent years, the US trade deficit with China has increased rather than decreased.