Recently, the analysis of China's manufacturing industry's competitive advantage is often linked to the supply of labor. It is believed that the current shortage of labor supply and rising prices in China's coastal areas will erode its cost advantage. However, Yao Shujie, a professor of sustainable development and economics at the University of Nottingham China, believes that China’s rapidly advancing infrastructure has succeeded in activating the long-term undervalued and idle land, labor, and other natural endowments in the Midwest, which will become a support for future Chinese manufacturing. Industry development is an important source of advantages.
Since the Chinese economy entered the new normal, the development of manufacturing in some regions has caused widespread concern. Whether China's manufacturing industry has competitive advantages, whether industrial structure upgrades can be realized, and how the future will drive innovation will become the focus of outside discussions and concerns. A number of British economists said in an interview with the "Economic Daily" reporter that to accurately develop the future of China's manufacturing industry, it is necessary to take a closer look at the improvement and optimization of the internal development environment in China's manufacturing industry in recent years.
Recently, the analysis of China's manufacturing industry's competitive advantage is often linked to the supply of labor. It is believed that the current shortage of labor supply and rising prices in China's coastal areas will erode its cost advantage. However, Yao Shujie, a professor of sustainable development and economics at the University of Nottingham China, believes that China’s rapidly advancing infrastructure has succeeded in activating the long-term undervalued and idle land, labor, and other natural endowments in the Midwest, which will become a support for future Chinese manufacturing. Industry development is an important source of advantages. Professor Ulrich Fritz of the University of London also believes that the development and improvement of China's transportation infrastructure will enable manufacturing companies to fully enjoy the advantages of labor and land resources in the central and western regions. The opinions of all experts are similar to those of the report of the British Economist Intelligence Unit at the end of 2014 on the advantages of labor costs in China's manufacturing industry. The Economist Intelligence Unit’s report believes that by 2020, despite the fact that China’s manufacturing labor costs will continue to rise, under the influence of the labor market in the central and western provinces, China’s manufacturing industry will remain relatively international relative to developed countries and some emerging economies. Strong competitiveness.
At present, the development trend of China's manufacturing industry is not simply the transfer of industrial clusters led by comparative advantages, but the upgrading of existing industries. Yao Shujie said that China's overall industrial technology, efficiency and environmental protection capabilities have made great progress. The development of the manufacturing industry in the central and western regions has also seen significant improvements and improvements in production technology, business management, and industrial layout compared with the development of the previous coastal areas. Professor Hong Hong from the School of Asian and African Studies at the University of London believes that the current development of China's manufacturing companies not only presents a mode of development based on local conditions, but also shows a clear industrial cluster effect, which is of great significance for the improvement of the competitiveness of manufacturing enterprises.
The interviewed experts agreed that the key to the upgrading of China's manufacturing structure in the future lies in the establishment of an innovation-driven model. Jonathan Porters, dean of the UK think tank National Economic and Social Research Institute believes that after the international financial crisis, developed economies generally began to pay attention to the development of high-end manufacturing. In the future, China's manufacturing sector, especially the eastern region, will face fierce competition along the upward shift of the industrial chain. In order to gain a foothold in fierce competition, real innovation drive is the only choice. Professor Xiaotao Xu, Director of the Technology and Management Development Research Center of Oxford University who has long paid attention to the innovation capability of Chinese enterprises, stated that the Chinese government has been paying close attention to the building of corporate innovation capabilities and has maintained high investment in R&D, education, and other fields for a long time. The current introduction of the "Made in China 2025" strategy and the rapid introduction of detailed measures more directly reflect the government's determination and confidence to enhance the innovation capability of the manufacturing sector.
Regarding the prospects of innovation-driven development in China's manufacturing industry, Fu Xiaoyun believes that the current internal and external environment for independent innovation of Chinese manufacturing companies has been significantly improved over the past, and is clearly reflected in the government's innovation incentive mechanism. At present, in the promotion of innovation and development, it has already got rid of the previous government and market "two-point law" positioning. While emphasizing the important role of the market in resource allocation, the government has given full play to its role in front-end innovation and personnel training. In terms of incentive mechanisms, the management evaluation mechanism for innovative talents and the distribution mechanism for innovative resources have also established a clearer and more scientific framework. In the future, while maintaining basic education and investment in front-end innovation, the government can also improve the capabilities and effectiveness of innovation and development of Chinese manufacturing companies by improving and combing the details of independent innovation policy frameworks, promoting international cooperation, and strengthening scientific research in innovation.
Professor Lin Jianguo, a member of the British Royal Academy of Engineering, focused on the leading role of the “going out†strategy in the innovation and development of enterprises. Lin Jianguo said that almost no internationally renowned manufacturing company is "closed behind closed doors," and extensive absorption of advanced technologies in various countries through scientific research and other means is the only way for the development of world-class manufacturing companies. Now, more and more Chinese manufacturing companies are beginning to “go global†and fierce international competition pressure will inevitably increase their investment in research and innovation; at the same time, Chinese manufacturing companies have begun to attach importance to cooperation with overseas research institutions. For full and in-depth scientific research and innovation cooperation will help Chinese manufacturing companies improve their core competitive advantage.
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