China’s accession to the WTO is not only an opportunity but also a challenge for the country. On the one hand, since its accession, China has stepped in the era of a global division of labor; on the other hand, some manufacturing enterprises in China have declined, and the low-end manufacturing industry has been impacted. So, what is the future of China’s manufacturing industry? What course will low-end manufacturing follow?
The future of China’s manufacturing industry
Fourth, China attaches great importance to manufacturing.
To become a great country, it must vigorously develop the manufacturing industry and increase the research and development of science and technology. The manufacturing industry is a core element to maintain national strength. How can a big country failing in manufacturing have technological innovation?
During the first industrial revolution, Britain quickly gained the largest overseas colony through the rise of technological advantages but Britain’s advantage did not last long. Why? Because it became the boss and the money was too easy to earn, so it did not pay attention to technological innovation. As a result, the manufacturing industry gradually deteriorated. Britain’s use of global colonies to obtain cheap, raw materials is enough to make a lot of money but it failed in relation to innovative ideas for technological improvement. Do we need innovation? Isn’t that the same thing that America does today?
Why didn’t Britain keep up with the second industrial revolution? Germany began to rise during this time instead. Remember, in order to break the British monopoly, Germany can only carry out technological innovation, strengthen the manufacturing industry, improve the industrial chain, and defeat the British through technological advantages.
During the third industrial revolution, the United States began to grow stronger, new technologies and industries flourished in the United States, and Britain gradually declined. After the U.S. crushed the U.K. in technology and economy, the U.K. pound could only become a regional currency and instead, the dollar became the global settlement currency.
Why hasn’t the United States continued to improve its manufacturing industry?
The United States clearly has a huge domestic market and a large enough territory. Why should it industrialize? If you want to know why think about one question: who is the man who dominates the United States? It’s the rich Jewish on Wall Street. The Jews were more concerned about their immediate interests and did not give up their gold coins. They value business but not production. Once a new technological revolution emerges if the United States fails to keep up and fall behind, will the elite of Wall Street still have a good time?
World War II was just the fuse used to defeat Britain. Even without World War II, the decline of Britain and its colonies’ disintegration would have been sooner or later. From Dutch disease to British disease, and now to America, we should learn from history. So if the United States does not reform, it is doomed to decline.
The future of China’s manufacturing industry: where will low-end manufacturing go?
In fact, the manufacturing industry and supply chain in Europe and America belong to the relatively developed small-scale peasant economy. In the past, when it was backward, China could only undertake the manufacturing link of the industrial chain. But gradually, China will master more core links of industrial chain, from “made in China” to “created in China”.
The European and American manufacturing industry is fading. In contrast to them, China is gradually penetrating and transforming from the low-end manufacturing industry to the high-end. China has the whole industrial chain from the low-end to the high-end, which is the advantage of China’s future development.
However, this does not mean the demise of China’s low-end manufacturing industry.
No country in the world can undertake the huge manufacturing capacity of China, which is determined by population and production volume. Which country can meet the product demand of China’s 1.4 billion markets? No, that’s why China is still vigorously developing its manufacturing industry in today’s highly developed economy. Whether it is India or Southeast Asian countries, even if people all over the country are employed as production workers, they will not be able to meet China’s product demand.
Therefore, it is inevitable for China’s low-end manufacturing industry to move and upgrade gradually but it is impossible to move all of them because there are capacity restrictions there and in other countries.