Big Data Analysis: China'S Manufacturing Industry Has Few Advantages.

Statistics of Ministry of Commerce

It shows that in the past year, China's direct investment in the US reached US $7 billion 596 million, and realized the net output of capital under direct investment in the US.

This year is still flowing out.

Taking Hangzhou city as an example, according to the statistics of Hangzhou Business Council, 1-8 new investment projects in Hangzhou were completed in 26 months, and the total investment of overseas enterprises was 867 million US dollars. The amount of overseas investment by Chinese enterprises was 754 million US dollars, up 698.57% from the same period last year, accounting for 61.64% of Hangzhou's foreign investment.

All say China is

Why do big enterprises pfer manufacturing to the high cost labor force? This may indicate that China's labor cost is no longer dominant, and that comprehensive cost is not dominant.

In August this year, the Boston advisory report showed that the top 25 economies in the world ranked 100 in the US, and the manufacturing cost index in China was 96. The gap between China and the US has been greatly reduced.

The report selects several key factors, such as worker's wage level, energy cost, exchange rate level and so on: first, the wages of Chinese workers have increased, according to the level of productivity adjusted wages, which rose from $4.35 in 2004 to $12.47 in 2014, or 187%.

Second, the exchange rate rose. From 2004 to 2014, the exchange rate of RMB against the US dollar increased by 35%.

The three is the cost of energy. China's electricity consumption rose from 7 US dollars per kilowatt hour in 2004 to 11 US dollars per kilowatt hour in 2014, while the cost of natural gas rose from 5.8 US dollars per million thermal units to 13.7 US dollars, or 138%.

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Listen again to the feelings of Chinese entrepreneurs investing in the US.

Cao Dewang, chairman of Fuyao Group, disclosed that the glass produced by Fuyao for General Motors in the United States was purchased in the United States. The purchase of a 150 thousand square meter factory in the US state of Ohio cost $15 million, and the renovation used 15 million dollars. The local government subsidized about 30000000 yuan by various channels, and Fuyao owned permanent property rights.

The Cole Group Co., Ltd., the main textile company, started the project in South Carolina in 2013. The total investment of the 5 year plan is US $218 million. After planning for 5 years, the capacity will reach 150 thousand tons of cotton spinning. At that time, the electricity tariff can be saved by RMB 2-3 yuan in China in one year, while the salary of 500 workers will increase by only 80 million yuan per year.

The downturn in global energy prices has led to a decline in the cost of manufacturing in the US, coupled with shale gas revolution, which makes us industrial electricity prices lower than 30%-50% of other exporting countries.

China's energy costs and environmental costs cannot be reduced because the development model at the expense of the environment has gone nowhere.

Not long ago, the move to protect the environment from slowing down the price of domestic refined oil also showed that no matter how the international price changes, the sharp reduction of China's energy prices is unrealistic.

At present, labor wages are rising in China, but labor efficiency has not increased at the same time, and there is no standardized labor training and pfer system.

According to the latest estimates of SMBC nixing securities, the unit labor cost (labor wage plus labor efficiency) calculated in terms of US dollars in China shows that Japan reached 3 times more than China in 1995, but in 2013 China surpassed Japan, and in 2014, it surpassed Japan.

Other costs include bank borrowing costs, depreciation costs, logistics costs, customs clearance costs, etc., because the middle chain is too long, and is exploited by some links.

The cost is not low.

Obviously, for China, it is the same as Southeast Asia to fight the population and labor costs, and that is to go back to the old road.

The next important thing is not to spoil the population, but to strive for quality and pursue high efficiency worldwide.