Intensive Situation of Manufacturing Industry in China Essays
China is the largest exporter and the second largest importer in the world. There became the largest manufacturing country in the world, overtaking the U.S. in 2010. This has raised debate that whether China has lost edge as world’s factory. In recent years, the average income in China has steadily gone up as China’s labor cost has grown by over 60 percent since 2009. However, Vietnam’s labor cost is 40 percent of that in China, while in Bangladesh and Myanmar labor costs are as little as one-fifth of China’s labor cost.9 Other factors are also contributing to foreign manufacturers’ profit decline in China, such as: the appreciation of the Renminbi, variability of various local tax …show more content…
Inflation-adjusted retail sales went up 12 percent in 2012, and are expected to maintain a similar growth pace in the next two years. Retail sales will continue to be the major driver behind production of consumer goods, while the still high uncertainties surrounding the global outlook and the competition from other low-cost countries are likely to put pressure on some export-reliant products in textile and apparel industries. 1 Automobile production continued to grow in 2012 as output expansion for passenger vehicles offset the output decline in commercial vehicles, dragged mainly by investment-sensitive truck production.
The government support for energy-efficient vehicles and the increasing demand from second- and third-tier cities will lend support to both production and sales in the near future, but the purchase restrictions and limited issuance of license place in big cities to reduce traffic congestion implicate that production growth will be relatively moderate.
The slowdown in domestic infrastructure and private housing construction took a toll on production of machinery and equipment in 2012, especially for construction machinery. The pickup in investment in railway, highway, and water conservation in 2013 will help stabilize production growth in this industry to be more in line with the previous trend, and manufacturing of high-end equipment