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Has been committed to promote American manufacturing industry competition ability of Obama, recently published in the Miami port encourage americans to use "made in USA" speech, speech process, a gust of wind blew the crane on the flag of the United States, behind revealed a Chinese brand with Chinese character symbol.To be sure, some are joking and proud to say that Obama is advertising Chinese products.

 

It is not advisable to magnify the meaning of this accidental incident.As the first major manufacturing country, China must be clearly aware that there is still a huge gap in the high-end manufacturing sector.China needs to build up its global production network deeply embedded in the global production network, so as to enhance its position. It needs to vigorously develop high-end manufacturing industries with global resources integration and allocation capabilities, and build a national competitive advantage.

 

Made in USA

 

China is still catching up

 

On a scale, China surpassed the United States as the world's largest manufacturing power in 2010.That year China accounted for 19.8 per cent of world manufacturing output, just above the us's 19.4 per cent.There was a cry of "the end of a 500-year cycle of economic history".

 

Now, almost all of the world's top manufacturing companies have set up operations in China.China's manufacturing sector is no longer confined to producing cheap labour-intensive products, and technology and capital-intensive equipment manufacturing is growing.Some of China's powerful manufacturing companies are buying western rivals.In January of 2012, China's sany heavy industry (600031, shares) for 360 million euros successful acquisition of the German engineering giant Portsmouth meister, in the same year in March, China north industries group, lingyun group joint acquisition of German kiekert 100% stake, marks the Chinese enterprises to enter international high-end market auto parts industry.

 

Statistics show that since 2009, China's high-end equipment manufacturing output has ranked no.1 in the world for four consecutive years.A large number of high-end equipment with intellectual property rights entered the industrialization stage.Including million kilowatt supercritical thermal power generating units, advanced million kilowatt grade pressurized water reactor nuclear power station complete sets of equipment, precision high-speed machining center, 3000 meters of deepwater semi-submersible drilling platform, etc., preliminarily formed the pattern of high-end equipment manufacturing industry.

 

But China's overall level of competitiveness is no more than an order of magnitude compared with America, the leading manufacturer of high-end manufacturing.The high-end manufacturing, first of all, is the "origin" pure, technology, intellectual property and brand and so on, almost all "origin", in the United States and China's advanced manufacturing technology from general "introduction, digestion, absorption, distribution, and innovation", the real independent innovation ratio is not high, core technology and key components of others, product reliability is low, the industrial chain of high-end absence.Second, the United States the development of high-end manufacturing has been relying on the world's leading research and development base, financial service and rich experience in industrialization of new technology, and this is precisely what China's soft rib.In terms of Labour productivity, America's high-end manufacturing sector is about 23 times that of China.More critically, the "high frontier" of American companies in the stock of high-end manufacturing has made it difficult for Chinese counterparts to get over it for a long time.Just one Boeing company, whose turnover reached $81.7 billion in 2012, is operating at $6.3 billion.Boeing had a record $390 billion worth of reserve orders at the end of 2012, with a net order value of $114 billion in 2012.China aviation industry group, which has 200 companies and 21 listed companies, sold less than $50 billion in sales last year.As for the Chinese business flying high hopes, it is more than a one-night work in the field of civilian mainline aircraft.

 

Many conditions, especially in technology innovation level is limited, in the pursuit of the international competitiveness of China's high-end manufacturing aspects especially cultivate independent intellectual property rights and international famous brands, it is difficult to a fundamental breakthrough in the short term.High-end manufacturing in China

 

Face double extrusion

 

In recent years, under the policy to encourage the Chinese manufacturing industry in technological upgrading, patent standards and branding has a larger development, represented by huawei's manufacturing enterprises are changing Chinese companies can only participate in the international division of labor of low-end embarrassments.But overall, China's peers will not be realistic for at least 10 years.Even huawei, it is still the most good at in the western multinational companies take a good technical platform for its production, although the situation is changing, but in the short term is unlikely to be a fundamental breakthrough.In complex higher degree of industry, such as laser cutting machine, heavy vehicles, such as hydraulic press, nuclear pressure vessels used special steel products and advanced medical equipment, Chinese companies the possibility of major technical leap is still quite limited.

 

In the last 10 years, foreign companies have been increasing their market control over Chinese manufacturing.In China's already open industries, almost all of the top five industries are controlled by foreign capital;Of the 28 major Chinese industries, foreign investment has control of most of the 23 industries.China's already acquired industrial progress is far less than the industrial control trend of foreign capital.

 

Originated in the United States, on the other hand, the "industrialization", low carbon economy development route, the next generation of new energy and wisdom the earth, to lock in high-end manufacturing, seek to shape a new competitive advantage.This will not only put more competitive pressure on the future of high-end equipment in China, but also cause market space extrusion for products that have already formed an advantage.Because financial markets for industrial supporting ability is strong, with strong ability of the global supply chain management, the U.S. is likely to take the lead in new economy (310358, fund it) revolution again after the industrial revolution, to cut global industry layout, so as to form another of China's economic and technological advantages.

 

Reconstruction under the environment of the global industry division of labor system, as the first manufacturer of China, must be sober estimate there is still a huge gap in the field of high-end manufacturing of China and the United States, China's high-end manufacturing competitiveness is a long-term mission.

 

(the author is dean of international school of finance and trade, Shanghai international studies university)

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