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Chinese manufacturing advantages are exaggerated in the "fly to Southeast"
From: Dongguan East Tiger New Material Science and Technology Co., Ltd Post date: 2014-07-02


Orders are flying to the Southeast ", Chinese some labor-intensive enterprises worry,textiles and other fields of" Chinese manufacturing "is to the Southeast Asian countries transfer.

In recent years, in view of China manufacturing costs rise, foreign home in mostmanufacturing, nature also diverted part of orders.

Chinese manufacturing advantages are exaggerated in "flying to the Southeast"(Figure 1) feedback some enterprises also shows that, as labor costs rise, the price of raw materials and land prices, the situation of RMB appreciation, many investors will be looking to lower labor costs in Southeast Asia, "order of flying to the Southeast" the trend is particularly evident in the textile field.

In spite of the Southeast Asian countries have a cost advantage, but their supplychain is not fully mature, will inevitably produce raw materials and semi-finished products from China transport to the countries of the additional transportation cost.

In addition, Bangladesh and Kampuchea's security and stability so investing. AboutBangladesh and Kampuchea will replace 'argument Chinese manufacturing' now seems more far fetched.

Because the artificial cost Chinese increase, foreign investors are taking "a" strategyChinese plus, diversify its products production base.

In the face of external competition, Chinese manufacturing industry no longer limited to the low value-added products. At the manufacture of electronic products, advancedtechnology and secondary technical parts, China is gaining a higher market share. At present, mechanical equipment is a category China to product manufacturingAmerican transport maximum. Overall, Chinese export from the concentration of capital and the level of technological complexity have increased.

"Low value-added manufacturing gradually declining proportion is the natural result ofdevelopment of comparative advantage, before Chinese into low value-added marketin neighboring countries, increase the added value of senior industry chain, which is encouraged by the." Liang Zhaoji thinks, "industrial structure adjustment process will continue for a period of time, Chinese manufacturing industry will continue to develop.The so-called emerging market competitors threat, most exaggerated."