"Made In China" Winter And Spring

Industrial upgrading requires the government to formulate supporting policies and entrepreneurs to make forward-looking decisions.

Tight monetary policy seems to stifle the independent innovation and upgrading of technology in manufacturing industry, especially in private manufacturing enterprises.

Cui Yu (Financial commentator)

The Chinese manufacturing industry, which is mainly made up of textile, footwear, clothing and toys and other light industries, has experienced a blowout development after joining the WTO, and is suffering from internal worries and is experiencing "June snow".

According to a series of recent reports of CCTV's "economic half-hour", such private manufacturing enterprises such as Zhejiang, Wenzhou, Jiangsu Wujiang, Fujian Jinjiang and Guangdong Dongguan are facing the pain of death and bankruptcy.

"Made in China" is a bad luck.

From the external environment, since joining the WTO, China's manufacturing industry has been blocked by the world. The slogan of free trade is played by the "hidden rules" under the guidance of developed countries, and the voice of anti-dumping, tariff barriers and forced appreciation of the renminbi is rampant. Even in Spain, there are also incidents of burning Chinese shoes.

In addition, the sharp rise in raw material costs has made Chinese manufacturing enterprises "blocked at both ends", especially this round of rising world energy and grain prices, making manufacturing enterprises even worse.

From the internal environment, the stringent tightening monetary policy since last year has made the capital chain of private small and medium manufacturing industries which have been suppressed by credit rationing and discrimination of ownership. The rapid appreciation of RMB and the reduction of export tax rebate also squeeze the original profit margins.

Moreover, with the end of the demographic dividend, the labor cost of enterprises has gradually risen, coupled with the cost of environmental protection, the accelerated pformation and integration of China's manufacturing industry, which traditionally relies on cheap labor and environmental resources, is an inevitable choice. This is also consistent with the policy proposition that we have been calling for upgrading the industrial structure. When it really comes, what we need is not complaining but facing difficulties.

In retrospect, British industrialization took 100 years, and the United States took 70 years. After the war, Japan entered the era of Post Industrialization in 20 years. With the advantage of late development, we should accelerate the process of industrialization after 30 years of reform and opening up, that is, the pformation from raw material industry to processing and assembly industry and then to technology intensive industry.

There is no need to worry about unemployment. Because the upgrading of the industrial structure will inevitably lead to the pfer of labor from the low productivity sector to the high productivity sector, and a large number of unemployment and re employment phenomena are derived. This is an economic law that can not be changed.

The economic development of all countries has proved that the second industry has a crowding out effect on the labor force as the organic composition of the capital increases, while the third industry is the service industry, which is the main battlefield to absorb the labor force. The simple development of manufacturing industry is not a long way to solve the employment problem.

Of course, the upgrading of industry requires interaction between government and entrepreneurs. It needs the government to formulate supporting policies and entrepreneurs to make forward-looking decisions.

Unfortunately, the current tightening monetary policy seems to stifle the independent innovation and upgrading of technology in manufacturing industry, especially in private manufacturing enterprises. Just as some entrepreneurs say, enterprises are not dying of innovation and dying faster now.

For example, last year, the great leap forward group, also known as an independent innovation pacesetter, has recently filed for bankruptcy due to the breakup of the capital chain, and the security giant of the high-tech industry with the high-tech background is also on the verge of bankruptcy due to the tightening of money. Moreover, because of their borrowing of more than ten times interest rate on the private credit market through the mutual guarantee mechanism of the relevant enterprises, the bankruptcy Domino effect can not be underestimated.

Therefore, how to support independent innovation and industrial integration of manufacturing enterprises in credit policy, fiscal policy and industrial policy needs greater wisdom of decision-makers.

For entrepreneurs, the current dilemma may be the result of sticking to the rule of law, especially for private enterprises.

In short, the dilemma faced by China's manufacturing industry is the pain that has to be borne in the process of industrialization.

We rely on investment and export of cheap goods, although the quantity of GDP is large, but the quality is too heavy. By developing high-tech industry and modern service industry, it is the right way to make our GDP "lightsome".

Remember Shelley's romantic verse: "If winter has come, can spring be far behind?"