Domestic low-end manufacturing crisis is growing b

2022-08-02
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Behind the withdrawal of foreign capital: the domestic low-end manufacturing industry is facing a growing crisis.

foreign capital in the low-end manufacturing industry is evacuating foreign employees to experience the pain of unemployment. Foreign capital in the low-end manufacturing industry is evacuating foreign employees to experience the pain of unemployment.

Mr. He, who works in a foreign enterprise in the construction machinery industry, has been worried about losing his job because he saw that many of his colleagues were laid off by the company. Now the industry is laying off everywhere. Reasons:, It's hard for laid-off people to find jobs again. I really don't know what to do if I lose my job

Mr. He feels that the recent recession is particularly bad. He doesn't know how many people are facing the crisis of being dismissed like him. So when he posted a post on layoffs in Tianya community, he quickly received hundreds of responses. These people who feel the same pain come from Japanese, European, American, Hong Kong, Taiwan and other foreign enterprises in Shanghai, Guangdong, Zhejiang, Jiangsu and some from mainland enterprises

a few years ago, Nokia, Ericsson, Cisco, Microsoft, Oracle and other foreign enterprises enjoyed great success in China. Lihua (a pseudonym), a laid-off employee from Nokia, said that he had managed to squeeze into the two companies. As a result, the first company was acquired by the second company, and now the second company has directly closed down

the experience of Mr. Zhao, who works in a US funded enterprise, is that not long ago, the company withdrew its business line to the United States. He found another foreign-funded enterprise in the industry, and was informed by HR that the position had been frozen before he was hired

some employees of foreign enterprises lamented in Mr. He's post. They felt that the company's bankruptcy and layoffs during the 2008 financial crisis were not so serious. It is estimated that this year will be the most violent year of layoffs and salary cuts

a survey released by the European Chamber of Commerce in China last year showed that in 2013, the proportion of European companies laying off staff in China rose from 10% in 2012 to 16%; In 2014, 24% of the companies planned to cut costs in China, up from 22% in 2013. Layoffs are a regular option for foreign companies to cut costs in China

according to the data released by relevant Korean institutions last November, the number of Korean enterprises newly incorporated in China was 2294 in 2006, 1301 in 2008, 901 in 2010, 817 in 2013 and 368 in the first half of 2014. This figure has decreased by nearly 90% since 2006

according to a report released by Boston Consulting in February 2012, 37% of the 106 American companies with annual sales of no less than US $1billion said that they were considering or planning to move some of their manufacturing businesses back to the United States

Dongguan is a sample area of China's manufacturing industry. A local manager engaged in foreign trade business said that the withdrawal of foreign capital and the closure of enterprises in Dongguan began in 2008. This year, the situation is particularly bad. In the past, processing enterprises moved to inland provinces, but now they are moving to Vietnam and Southeast Asia

a manufacturing insider in Dongguan who asked not to be named recently told Yi Caijing that the second-hand equipment he had purchased in Dongguan in recent years were all owned by Hitachi, Panasonic and other well-known enterprises, and the 1000 yuan machines originally worth 30000 or 40000 yuan were collected and piled up in the warehouse; More than 10 million injection molding machines with a total value of 200 million will be sold because too many enterprises have closed down and moved away

Zhai suoling, chairman of Dongguan Taiwan Businessmen Association, said in an interview with the media last year that the situation of Dongguan Taiwan businessmen is more serious than that during the 2008 financial tsunami. All factories are short of labor, and almost every factory is short of 30%. Since 2008, about 20% of Taiwan businessmen have left Dongguan

however, the FDI data provided by the Ministry of Commerce in refuting the argument of foreign capital withdrawal a few days ago showed that China actually used US $13.92 billion of foreign capital in January, an increase of nearly 30% year-on-year. From these data alone, it is true that there is no sign of a large-scale withdrawal of foreign capital, but the decline of foreign capital in traditional manufacturing is tangible to every relevant party

wangzhile, a researcher at the Research Institute of international trade and economic cooperation of the Ministry of Commerce, explained to yicaijing on March 22 that from the overall data, the signs of foreign capital withdrawal are indeed not obvious, but these withdrawn foreign capital are mainly concentrated in cost oriented enterprises

the withdrawal and large-scale layoffs of foreign capital in cost oriented industries are, on the one hand, the shrinking demand of enterprises under the depressed macro situation, and on the other hand, the equally obvious factor is that the transformation and upgrading of the manufacturing industry has released low-level labor costs in the process of more efficient intelligent manufacturing replacing extensive production

global manufacturing industry adjusts foreign enterprises to formulate a new round of strategies in China

in the view of researchers, the reasons for the adjustment of foreign capital's strategic layout in the Chinese market are obvious. The pursuit of profits by capital, the sharp rise in the prices of labor and land, and the withdrawal of preferential policies under super national treatment are all leading to an increase in enterprise operating costs and a decline in profit margins

the Reindustrialization strategy proposed by developed countries to solve employment and other problems, as well as the lower operating costs provided by India, Southeast Asia and other countries. The Ministry of housing and urban rural development has listed leakage as the most common quality problem of construction projects, and other advantages have prompted foreign enterprises to move their production lines out of the Chinese market

according to the statistics of Congressional Research Service, from 2000 to 2013, China's wages increased by an average of 11.4% per year. At the beginning of this century, the salary of Chinese workers was only 30.2% of that of Mexican workers. In 2013, the monthly salary of Chinese workers was 50.5% higher than that of Mexican workers and 168% higher than that of Vietnamese workers

an equipment manufacturing industry analyst added to Yi Caijing that local enterprises are beginning to mature in the low-end manufacturing industry, and they have a higher tolerance for low profit margins than foreign enterprises, which is also an important reason for foreign investment to accelerate the withdrawal from low-end manufacturing

Shi Yong, a researcher at the Institute of strategy and planning of the Information Research Institute of the machinery industry, told Yi Caijing that the development of China's private enterprises in many fields of manufacturing has indeed put some pressure on foreign enterprises. We can provide products at much lower prices than them, but the quality is far from keeping up

in addition, there are many areas that local enterprises cannot do. Shi Yong casually cited a case. Although the buckle on the Audi safety belt is a very small part, the local enterprise can not produce it

however, wangzhile also told Yi Caijing that those manufacturing enterprises with huge demand in the Chinese market actually showed no sign of flight. I talked to those enterprises and they did not plan to withdraw

as the largest consumer market in the world, foreign-funded enterprises will not withdraw or give up completely. So what is their next game after they withdraw from the low-end manufacturing field? It can be said that the cost oriented low-end manufacturing industry has begun to shift to regions with lower costs, while the high-end sector is welcoming more and more foreign investment. Wangzhile believes that this is a global adjustment of the manufacturing industry

according to the data of recent years, the monthly scale of FDI is basically stable at US $10billion to US $15billion, but the structure is changing. According to the data, the amount of foreign capital absorbed by the end manufacturing and financial services industry is increasing year by year, especially the pace of foreign capital absorbed by the transportation equipment industry and communication computer industry is significantly accelerated

this global adjustment of manufacturing industry is also reflected in the strategic transformation of foreign-funded enterprises. Loushi electronics, the world's largest manufacturer of acoustic equipment, began to set up its first factory in Suzhou in 1996. As early as the end of 2013, the company said that it was making internal structural adjustment, that the labor-intensive hearing aid production line would be transferred to the Philippines, that an advanced ceramic capacitor production line would be transferred from the UK, and that it would increase its R & D investment in the Chinese market

luwenjie, vice president of Lou's electronics in China, said that the current Chinese workers will engage in work with higher technical content after training, and they are increasing investment in China. Part of Lou's R & D work has begun to be deployed in Suzhou. Kuai Jun, senior manager of the R & D department of Lou's electronics Suzhou Co., Ltd., said that Chinese engineers have cost advantages, which is more cost-effective for the company

in the pharmaceutical industry, almost all foreign pharmaceutical giants have increased their R & D investment in the Chinese market in the past few years and invested heavily in setting up R & D centers in China. Rdpac, an alliance of foreign pharmaceutical enterprises in China, recently provided a survey report made in 2012 to yicaijing. It shows that in the past 10 years, the number of rapdc members in China's R & D centers has increased from 7 to 30, directly creating about 3000 high-end R & D jobs

according to the report, the R & D and innovation investment of rdpac members in China is increasing significantly. At present, the total investment level has reached 8billion yuan per year, which is more than half of the total R & D investment of all large and medium-sized pharmaceutical enterprises in China in one year, and twice the R & D investment target set by the Chinese government for local bone stem enterprises

in an email reply to e-finance, South Korea's Samsung Group said that its strategy in the Chinese market is to expand investment in cutting-edge technology and equipment industries, strengthen research and development, and expand business to the central and western regions, the northeast, and small and medium-sized cities. Samsung invested 7billion dollars to build a semiconductor factory in Xi'an, Shaanxi, which was put into operation last May. The factory will produce the world's latest 10 nanometer flash memory chips

foreign enterprises in manufacturing industry transformation get ahead of China Version 4.0 accused of cement + mouse

in March this year, the Chinese government put forward the manufacturing industry ten-year strategic plan of made in China 2025. This plan puts forward the three decade and three-step strategy for building a manufacturing power. Finally, the grand goal of building a manufacturing power will be achieved at the centenary of the founding of the people's Republic of China

this is the top-level design made by the Chinese government for the transformation and upgrading of the domestic manufacturing industry. It obviously responds to the industrial 4.0 strategy proposed by Germany and enthusiastically pursued worldwide

the concept of industry 4.0 put forward by the Federal Ministry of education and research and the Federal Ministry of economy and technology at the Hannover Industrial Expo 2013 means that, following the three industrial revolutions of steam engine application, large-scale production and electronic information technology, mankind will usher in the fourth industrial revolution based on the information physical fusion system (CPS) and marked by highly digitalized, networked and self-organized production

according to Huang Pei, chief editor of e-works, industry 4.0 emphasizes intelligent factory and intelligent production. Its essence is to achieve a high degree of integration of information and automation technology, aiming to maintain the competitive advantage of German manufacturing industry in the world. In this environment, China's manufacturing industry is facing unprecedented challenges. The high-end manufacturing industry is returning to developed countries, and the low-end manufacturing industry is transferring to low-cost regions

at present, in the process of transformation and upgrading of China's manufacturing industry, these foreign-funded enterprises are clearly ahead

in March, 2012, Siemens started to build its third digital factory in the world in Chengdu, which is also the first factory built by Siemens outside Germany. In September, 2013, the plant was officially completed and put into operation

a Siemens supplier in China who has been to the factory in Chengdu told Yi Caijing that the factory is planning the production line to the extreme. There are only about sixorseven people in a line. All logistics are sent to the station by intelligent systems. The whole equipment process is connected by intelligent systems. It will automatically operate what sensors it selects and what chips it pastes

compared with other Siemens plants in China

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