Recently, major manufacturing giants seem to be in sleepless nights. A large number of manufacturing factories have announced their withdrawal from China, especially manufacturing giants from Japan and South Korea. Many people are very happy that these original The manufacturing powerhouses have all declined. Does it mean the rise of Chinese manufacturing? However, among all kinds of cheers, we have to be soberly aware that things seem not so simple, because these evacuated giants seem to have gone to the same place. This is Southeast Asia. If this is the case, then it is made in China. It is not only a good thing, it is even a crisis.
The withdrawal of manufacturing giants from China can be said to be a major trend in recent years. According to information from the open market, these giants are withdrawing from China in recent years:
1. At the beginning of 2017, the hard drive manufacturer Seagate Suzhou announced its dissolution and Seagate shifted its production capacity to Southeast Asia. According to news reports, Seagate launched the expansion plan of the Nakhon Ratchasima factory in Thailand in 2015, investing 470 million US dollars to expand production capacity by 2,500 employees.
2. On October 30, 2017, Nikon China officially announced that it will close Nikon Optical Instruments (China) Co., Ltd., a subsidiary located in Wuxi. At the same time, the factory responsible for the production of Nikon digital cameras and accessories will also be discontinued. According to the report of the news, Nikon, which has withdrawn from China, chose to outsource its factories in Southeast Asia and continue its industrial manufacturing.
3. In February 2018, according to the Nihon Keizai Shimbun, Fujitsu will sell mobile phone business to Polaris Capital Group at a price of 50 billion yen (about 456 million US dollars). In addition, the report said that employees and factories that retain the mobile phone business may be one of the conditions for the transaction, and Fujitsu will continue to operate the Arrows brand under the management of Polaris Capital. According to media reports, Fujitsu is preparing to operate a factory in Vietnam.
4. In May 2018, Shenzhen Samsung Electronics Co., Ltd. will be revoked. Except for the six Korean high-level executives, all employees will be dismissed at the end of April, and the number of severances will be about 320. Du Changxi, deputy general manager of Samsung Electronics Communications in Shenzhen, also said the last paragraph of the WeChat group of employees before the dissolution of the company! Not long ago, Samsung Electronics also said it would set up factories in Thailand and India.
5. On May 7, 2018, Olympus confirmed that the factory in Shenzhen has been suspended from production on May 7th. The estimated expenses are currently being investigated. It is expected that the final accounts for the March 2018 issue will be announced on May 11. inform. With the sharp shrinking of the digital camera market brought about by the popularity of smartphones, the productivity of the Olympus Shenzhen plant has dropped significantly. Moreover, the Olympus Shenzhen factory has been in operation for 26 years and its equipment has been aging. It is difficult to maintain competitiveness. In view of the above, Olympus decided to stop production at the Shenzhen plant and concentrate production on Olympus Vietnam Co., Ltd. (Olympus Vietnam) in Dong Nai province, Vietnam to increase production efficiency and profitability, and strengthen The digital camera business is internationally competitive.
With so many world-class manufacturing giants leaving China collectively, it is a faint concern to lay out more of Southeast Asia, because this seems to be becoming a trend. Where is the manufacturing worries of China?
For a long time, Chinese manufacturing has been the pride of the Chinese. From the 40 years of reform and opening up, China’s manufacturing has grown from scratch, from small to large, making China a world-famous manufacturing power, and its national strength and international competitiveness have been continuously improved. It has also won China's reputation as a world factory, so we are gradually getting used to China's important position in the world's manufacturing industry.
However, when faced with a large number of corporate giants leaving China, we seem to need to be vigilant. This is what China has become the manufacturing giant in the world.
At the beginning of reform and opening up, China has nothing to do with almost everything. What are the resources that China can use to support China's development? Mainly three points:
The first point: the huge Chinese market. Before the reform and opening up, the planned economic state made the Chinese almost in a state of extremely material shortage. When China’s purchase demand was suppressed for a long time, the reform and opening up ushered in a big release of Chinese purchase demand. In the 1980s, China was in a state where as long as the production line was introduced, any products produced could be sold out. This is the subsequent compensation response brought about by the lack of economy, and the market has become an important attraction for the world's manufacturing giants. s reason.
The second point: China's massive demographic dividend. China, with a population of 1.4 billion, is the most populous country in the world. China has a large population that gives China an excess demographic dividend. According to the theory of the famous development economist Arthur Lewis, China’s rural and urban industries have huge industrial and agricultural income. Poor scissors have formed a process of Chinese population moving from rural to urban areas. A large demographic dividend allows companies to hire labor at a low price, thus suppressing manufacturing labor costs to a very low level. This low labor cost makes many companies They are willing to set up factories in China, which has led to a series of rapid development of China's southeast coastal cities.
The third point: China's resource policy dividend pool. At the beginning of reform and opening up, because China’s economic development level is relatively backward, local governments have no funds, no technology, and no technology. Therefore, they have adopted measures to support policy dividends, whether they are resources, raw material prices, or land policies. The huge concessions of foreign companies have formed the role of resource reservoirs and introduced foreign-invested enterprises to various places, thus driving the development of the manufacturing industry.
Today, the three major development resources are beginning to have different levels of problems:
Question 1: The speed of consumption startup is not in line with expectations. Many companies predict that China's consumption will start quickly, and China's consumption upgrade process will continue to accelerate. However, the actual situation is that Chinese consumption has started, but this kind of start-up is not complete. Many times, our consumption is still Low-level consumption, because many guarantees are still not perfect, most of the income of residents in many first- and second-tier cities in China is still occupied by buying houses or other large-scale shopping, and there is not much money for real consumption.
Question 2: The demographic dividend has disappeared. Since 2010, China’s demographic dividend has begun to disappear. Due to the long-term implementation of a Chinese child, China’s actual population growth rate and population structure are not as good as expected by enterprises. Many enterprises are faced with labor shortages and difficulties in using labor. The problem of expensive labor, the company can rely on a large number of industrial reserve forces to lower the wages of workers, but now due to the long-term existence of labor shortage, companies have to open higher prices, but the profits of enterprises are not so high, so The affordability of prices is also limited. The end result is that companies can only choose Southeast Asia and South Asia where wages are lower.
Question 3: The cost of resources is rising. With the development of China's economy, the resources, energy and land costs in many regions of China have shown a rapid rise, especially the cost of land. The higher land prices in the southeastern coastal areas have forced companies to relocate to the mainland, but the mainland The transportation cost of the region is high, so the company finally chose to move to the coastal areas of Southeast Asia under the trade-offs. The land cost is also low, and the transportation cost is also low. The original resource advantage has become the resource advantage of Southeast Asian countries.
Faced with these manufacturing worries, our problems also exist. The manufacturing giants can withdraw from China. Chinese enterprises, especially small and medium-sized enterprises, have no way to retreat. At the same time, a large number of industrial workers in China need more. The work, so the problem of making in China is still worth pondering.
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