High-End Manufacturing Is Embracing China Enthusiastically.

Because

The growth rate is too fast. Some international enterprises, which are extremely sensitive to labor costs, have begun to pfer their capacity to other regions, and the Southeast Asian and South Asian countries with lower absolute wages, slower wage growth and younger age groups have become the ideal places for their success.

Nike's annual report shows that in 2001, China's factories accounted for about 40% of the footwear products, ranking first in the world. In 2005, the figure dropped to 36%, and in 2010 it fell further to 34%.

By contrast, Nike's capacity in Southeast Asian countries has gone all the way, from 13% in 2001 to 37% in 2010, replacing China's number one position.

Now, you go to the mall to buy a pair of Nike or Adidas.

You will find that its origin is not "Made in China", but "made in Indonesia" or "made in Vietnam".

As China's labor costs have risen sharply in recent years, some labor intensive industries, including ADI and Nike, are gradually leaving China. However, with the runaway of the low-end manufacturing industry, some high-end manufacturers are embracing China enthusiastically. For example, Boeing will set up the first overseas factory in China. When you travel by Boeing aircraft, the aircraft will probably be "Made in China". The apple products you use may become "made by China" from "made in China".

In 2012, Adidas shut down its last direct factory in China, a wholly owned subsidiary of the Suzhou Industrial Park.

In September 21st this year, the reporter visited Maxwell factory in the east base industrial park of Whampoa District, Guangzhou, and learned that the Maxwell Guangzhou factory was no longer produced since 2017.

Besides the influence of manpower cost, the impact of technology upgrading on China's manufacturing industry is also very far-reaching.

For example, Adidas has decided to move the manufacturing industry back to Germany, because 3D printing technology, intelligent factories and other means have been able to significantly reduce.

The cost of footwear industry reduces its dependence on workers.

In early 2013, President Obama said publicly that it is essential to restore the manufacturing base for the future growth of the United States.

In June 20th this year, Obama announced that it will set up an advanced manufacturing center dedicated to smart sensors and other technology research in Losangeles, to help us manufacturing industry reduce production costs and energy consumption, and enhance productivity and competitiveness.

At the end of 2015, a survey conducted by the Boston consulting firm showed that 31% of enterprises surveyed with annual income of at least 1 billion US dollars were most likely to produce production activities in the United States in 5 years, 26% higher than two years ago. Only 20% will choose China, which is lower than the previous 30% level.

Ian Chang, vice president of China's operations and business development of Boeing civil aircraft group, said in Beijing that Boeing and its Chinese partners are working out the final commercial agreement, and plans to announce the completion and delivery center facility location of 737 in the near future.

Now, Boeing 737 in Seattle factory assembly and delivery, the current productivity is 42, and will increase to 57 in the future.

But Boeing has never completed the completion and delivery center in any country outside the United States or even outside Seattle. In China's completion and delivery center, Boeing plans to deliver 8 to 10 aircraft per month, with an annual delivery volume of about 100.

Prior to this, Zhejiang, Zhoushan, Tianjin, Shaanxi Xi'an and so on have all heard the news of Boeing's coming to the ground.

For example, in the "13th Five-Year plan" of major construction projects in Zhejiang Province, the Boeing Asia Pacific delivery center project will be built in Zhoushan.