At present, the global manufacturing competition has turned into a competition for technology and innovation. With the ever-increasing ability of independent innovation, the transformation of “Made in China” to “China-made” is becoming a new enthusiasm. "Made in China 2025" proposes to achieve the strategic goal of creating a powerful country through "three steps". On the air, China's Internet industry, robotics industry, and high-end equipment manufacturing industry are all "golden pigs" that take off at any time. "Made in China" is embarking on a new journey toward manufacturing power.

The near-term picture of China's manufacturing industry outlined by the data is rather gloomy. Since the beginning of this year, a number of data used to express the decline of the manufacturing industry have been falling.

Whether the reality is equally frustrating? The reporter has spent more than a month visiting places such as Guangdong, Jiangsu, Zhejiang, Shanghai, Fujian and Chongqing. He witnessed the "pain" and development of the survival of nearly a hundred enterprises under heavy pressure. "Tired", they also feel the pulse of their still strong beat.

In the past, unlike the past, after 30 years of sustained rapid growth, the “world factory” has gradually moved away from China. Through the current complex and even contradictory industrial phenomena and data "fog", the comparative advantages of "Made in China" industries are being replaced by new ones.

Weak data highlights the tough situation

In the first quarter of this year, the added value of industries above designated size in China increased by 6.4% year-on-year, which was a new low since May 2009, which further exacerbated deep concerns about the “Made in China” situation in a severe downward trend.

The macro data is not optimistic and continues to experience downward pressure. It is the most intuitive reflection of the Chinese industrial manufacturing industry to the global market since the second half of last year. According to the latest statistics released by the National Bureau of Statistics, in the first quarter of this year, based on the low innovation rate in the first quarter, the actual growth of the industry above designated size in China was only 5.6% year-on-year, which is still 1.2 percentage points lower than the growth rate in the previous two months. In May this year, the value-added of industrial enterprises above designated size increased by 6.1% year-on-year, which has risen but still not reached this year's high; HSBC China's manufacturing purchasing managers index (PMI) fell from 49.6 in March to April. And in May of 49.2, it only rose back to 49.6 until June. In addition, in the first two months of this year, the accumulated freight volume of railroads that are closely related to the manufacturing industry also decreased by 9.1% year-on-year, and the daily average production volume of power generation that is closely related to manufacturing and the real economy was also in March. There was a 3.7% year-on-year decline... All kinds of data are constantly increasing external worries.

Does the data "tumble" mean that tens of thousands of Chinese manufacturing companies are really "unforgettable"?

Luo Wen, dean of the China Electronic Information Industry Development Research Institute, said that the grim situation reflected in the downside of the data can be described as “plateau climbing”. “In the first two months of this year, the overall profit margin of industrial enterprises above designated size in China was only about 4.9%. In this case, the funds will flow to real estate and the stock market instead of entering the manufacturing industry, which will bring more pressure."

During the visit, the reporter felt that, although the data was not optimistic, it could not simply use “good” or “bad” to judge the current state of the manufacturing industry in China. Many kinds of contradictions were coexisting and multiple complex forms were intertwined. A true portrayal of Made in China.

The transition is facing many challenges

Increases in exchange rate fluctuations, rising labor and raw material costs, and slow recovery in global market demand continue to affect Chinese manufacturing. After more than 30 years of sustained and rapid growth, the fundamentals of the market and the social environment in which China's manufacturing industry is located have undergone fundamental changes. Many industry insiders and experts believe that it is the fundamental pressure for this round of “transformation tests” whether or not they can bring their own development and social needs into line with each other.

China's manufacturing industry, which is at the transitional stage, is facing many challenges.

One of the transformation tests is how a large number of manufacturing companies shift from meeting the needs of the international market to meeting the needs of the domestic and international markets.

The President of the American Chamber of Commerce in South China, Harry Sayaddin, said that in the past two years, there has been a clear trend that OEMs based solely on China's manufacturing bases have struggled to survive or even shut down in large numbers, but manufacturing companies that target sales in the Chinese market are P & G, Midea, Amway, and multinational auto giants are constantly increasing their capital to expand production. The fundamental reason is that many years of economic growth has made the Chinese market grow and the social costs have generally risen, which means that "Made in China" has actually been unable to And the "world factory" simple picture equals, but should be mainly to meet "China's needs" as a starting point. Take the chamber of commerce as an example. As of the end of 2014, 79% of its member companies were exclusively providing products and services for the Chinese market. This contrasted with only 23% before 2003.

"Foreign-funded enterprises are still like this. Many local companies in China, especially export-oriented ones, will need to change from many aspects such as personnel training, team building, and product positioning. Otherwise, they will be eliminated." Saiyaddin said.

The second test of transformation is how manufacturing companies shift from scale expansion to quality improvement, technological breakthroughs, and cultural leadership.

Jin Yong, director of the Institute of Industrial Economics at the Chinese Academy of Social Sciences, pointed out that after more than 30 years of continuous growth, China is already the world’s largest manufacturing country. However, the process of industrialization in a country depends not only on “flow” but also on the "Inventory," which is where our lack is. “On the surface, it seems that our manufacturing industry has no room for development, but looking deeper, with the exception of individual fields such as high-speed rail, most of the industry’s technological commanding heights are not in China. This is in line with our past industrial development. There is a direct correlation between the lack of height and depth.History and reality have shown that upgrading the quality of the manufacturing industry can not be achieved through investment, and further down the road depends on technological breakthroughs and cultural leadership. This change is difficult and painful. Is also a considerable part of the business may not pass the mark." He said.

Economic columnist Wu Xiaobo believes that after more than 30 years of sustained development, China has formed a stable and influential middle-class consumer group. Their demand for consumer goods and industrial products is changing from quantity requirements to quality requirements. "Their appearance actually constituted a turning point in 'Made in China'."

The third test of transformation is how the comparative advantages of domestic manufacturing industries change from preferential policies and cheap resources to complete industrial chains and perfect market systems.

Zhu Gaofeng, head of the China Academy of Engineering’s “Strategy to Make Powerful Country Strategy,” said that in the past few decades, policy preferences and adequate supply of land and labor factors have provided China’s manufacturing industry with a comparative advantage basis, but now these advantages are It is difficult for China to become the second largest economy and the continuous improvement of the market legal system environment. However, this does not mean that China’s manufacturing industry has lost its competitiveness. “Our current advantage is precisely what has accumulated over the past 30 years. The new advantages mainly include the improvement of the industrial chain and the solid foundation of the domestic market. Isn't there a lot of companies moving out of China and relocating? The key is how to adapt to these changes."

Businesses actively respond to hardening

High output capacity, weak market demand, increased foreign exchange volatility ... In this environment, the reporter visited and saw that the market's short-term anxiety and development of long-term optimistic attitude exist at the same time.

In the southeast coastal areas, an owner of a clothing company complained to journalists. In his village, 70% of the enterprises had closed down in the past two or three years. “I paid the bank more than 4 million to the bank’s runners last year. yuan".

In a certain city in the south, the local government recommended to reporters a large labor-intensive enterprise with tens of thousands of workers as a "typical development of contrarian development," but the person in charge of the Hong Kong-owned company saw the reporter's spit, said He is very optimistic about the advantages of labor costs in Myanmar and other places. "The next two or three years will either shut down the plant or not, or it will transfer the entire factory to Southeast Asia."

However, at the factory in Shenzhen, which was separated from the wall, Huawei's rotating CEO Ho Hou told reporters that the world's top telecommunications company achieved global sales revenue of 288.2 billion yuan last year, a year-on-year increase of 20.6%; net profit of 27.9 billion Yuan renminbi, a year-on-year increase of 32.7%, is even larger than the combined total of Ericsson, Alan and Nokia.

“We have confidence in the next five years to continue to achieve an average annual growth rate of more than 10%!” In Jiangsu, Zhejiang and other places, the photovoltaic industry, which once suffered a downturn, has once again risen again and again. Not only has the entire industry achieved a turnaround, but also a number of dominant companies. Also stands out, the person in charge of the Trina Solar Group in Changzhou told reporters that the company’s production capacity this year can account for one-tenth of the world’s total and “stay first in the world”.

At Jiangsu Xugong Group, deputy general manager Li Suoyun took a number of fingers and pointed us to various challenges and difficulties. He admitted that companies and industries have encountered unprecedented pressure, but he also said that in the same year, Xugong Group still gritted his teeth. Brazil has established a manufacturing base and set up R&D centers in Germany and the United States. “The short-term difficulties will not endure long-term growth, and the temporary losses will be long-term gains. We believe that 'Made in China' must form new advantages. To participate in international competitions, open research and development and fight the market."

In the industrial city of Xi'an, Shaanxi Jiangu Group Chairman Yin Jian'an stated that since last year, the country’s heavy chemical industry has witnessed a sharp decline in investment, the global market is in short supply, and it is difficult to change in the short term. Coupled with the depreciation of the RMB against certain currencies such as the euro, the industry has not yet Going out of the valley, “But when we analyze and analyze, we still feel that we have the opportunity and the way out. First, the state’s concern for environmental protection will inevitably bring about the transformation of equipment. The second is the “One Belt and One Road” initiative. We have talked with Indonesia for a long time. , intends to rely on the "going out" of domestic projects to achieve investment in equipment."

Looking forward to more improvement in the manufacturing environment

In the interview process, some business executives believe that although there are good market opportunities, they are struggling to face the constraints of financing difficulties in financing, making some companies miss the opportunity for development. Many business executives are eagerly looking forward to the current pace of reform can be faster and bigger, so that the manufacturing environment can have more improvements. “The problem is that companies have impetus and the surrounding environment is not enough.” Zhao Bin, deputy director of the Wenzhou City Economic and Information Commission, said, “From the financial environment, the balance of loans to Wenzhou enterprises last year turned out to be negative growth, and bank loan approval limits have all moved up; Looking at the environment, whether it is the land use index or the financial leverage, we are all subject to greater restrictions. We have not had strong local presence, which severely limits our transformation and upgrading.”

In Zhongshan City, Guangdong Province, Zhou Yujia, chairman of Belmar Sanitary Ware Co., Ltd., is preparing to open up a new production line with the help of the market boom. It is necessary not only to upgrade from a traditional toilet to a smart toilet, but also to turn its own brand into reality. Manufacturing changes to independent brands.

“We have organized a number of sanitary companies to study in Japan and must not hand over this rare opportunity to Japanese companies. However, the most painful thing is that the problem of financing has never been solved. It is clear that the entire society has seen the market for smart toilets. Opportunities, but the bank still wants us to take assets to mortgage, which trapped our hands and feet, let us take difficult steps." Zhou Yujia said.

In the interview process, some manufacturing companies, including some well-known big groups, confided to reporters their true ideas and eagerly hope that the current pace of reforms will be faster and bigger, so that the manufacturing environment can have more Improvements. Liu Jincheng, chairman of Huizhou Yiwei Lithium Energy Co., Ltd., said that with the social and economic development, enterprises should take the initiative to welcome the reforms and assume due social obligations and legal responsibilities.

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