Do a good job in low-end manufacturing, give full

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Do a good job in low-end manufacturing, give full play to its advantages, and promote industrial transformation and upgrading

China's specific comparative advantages in various factors of production determine that China should continue to develop low-end manufacturing. At present, China is still facing huge employment pressure, which requires that China's leading industry is still labor-intensive low-end industries

in fact, low-end is not necessarily equal to low added value. Doing a good job in the low-end sector means improving the added value of the industry in terms of product quality, brand and other aspects, so that China can not only give full play to its comparative advantages, but also promote industrial upgrading and industrial transformation. Therefore, local governments at all levels should gradually weaken their "player" identity and better do a good job as a "referee", so as to create positive conditions for the development and promotion of low-end industries

the benefits of low-end industries

the so-called low-end meaning includes several aspects: first, it refers to industries with relatively low technological content, such as textile industry, food processing industry, etc; Second, it refers to being at the low end of the industrial chain, such as OEM production or providing parts for the whole machine, which is really difficult to produce for one ticket; Third, it refers to low-end products in the same industry, such as low-cost cars with small displacement

the high growth rate of China's economy in the past 30 years with the reduction of body weight is driven by low-end production. After World War II, the global large-scale industrial transfer took place three times, the first time from Europe and the United States to Japan; The second time was from Europe, America and Japan to the four little dragons in Asia and South America; The third time, since the 1980s, the global manufacturing industry has shifted to China, making China a world factory. Although being at the low end of the industrial chain means that others earn big money and earn small money by themselves, and they also suffer from environmental pollution, the biggest benefit is to achieve the two biggest goals in macroeconomics, namely, economic growth and full employment

compared with India, although India has also benefited a lot from the transfer of services from developed countries, for example, India's software industry has established a prominent position second only to the United States. However, the number of jobs created by the software industry is only 2million, compared with about 150million jobs created by China's export product manufacturing sector alone. Therefore, the widening gap in economic development between China and India is largely due to China's low-end manufacturing industry and India's relatively high-end software industry

industrial upgrading was impacted by the financial storm

Michael Porter, American business thinker and father of competitive strategy, divided the economic development driven by competition between countries into four stages: production factor driven, investment driven, innovation driven and wealth driven. According to this division, Japan should have entered the innovation driven stage since the late 1970s. However, in the past 20 years since the late 1980s, Japan has made little progress. The Nikkei index continued to decline after reaching 38900 points in 1989. At present, it is only more than 8800 points, obviously entering the wealth driven (recession) stage

in the process of the third global industrial transfer, the only one who successfully won was big 1 The concise interface is probably South Korea, which is currently in the innovation driven stage, while China is still in the investment driven stage

theoretically, with the appreciation of the RMB and the rise of labor prices, there are signs that China's industries have shifted to other regions again. However, China is too big, not only has a large population, but also has a large gap in economic development between the East and the West. It is not easy to transfer low-end industries out. Moreover, at present, China is suffering from the impact of the U.S. financial storm on the real economy. The realization of industrial China's food contact materials and products will enter a period of new regulations and standards, and the pace of upgrading will undoubtedly slow down

the low-end industrial chain has not been completely completed.

from the perspective of global industrial transfer, it is a good thing that China can undertake the transfer of global manufacturing industry. If we can realize industrial upgrading again in the next possible industrial transfer, and rise from the low end of the industrial chain to the middle and high end, it is a matter for celebration, but the question is whether China has the conditions to realize industrial upgrading

taking the automobile industry as an example, Japan and South Korea have used the occasion of industrial transfer to develop and expand their own brands such as Toyota and Hyundai. On the contrary, in China, independent auto brands such as Jiefang and Hongqi, which have developed for more than 30 years, are almost squeezed out of the market in the process of Sino foreign joint ventures in the auto industry

in the process of industrialization, Japan's strategy is to meet domestic demand before exporting. South Korea develops its own industry by borrowing from abroad and introducing technology, and expands its industrial scale by encouraging domestic consumers to buy domestic products. China, on the other hand, adopts more Sino foreign joint ventures to develop the manufacturing industry. In this process, wily multinational companies will inevitably eliminate China's local brands one by one. For example, Shanghai was originally the place with the largest number of famous brand products in China, but the former butterfly sewing machines, Jinxing TV machines, Shangling refrigerators and so on are no longer visible

from this point of view, even at the low end, China has not done a good job

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