Revaluation Of The United States &Nbsp, China'S Manufacturing Challenges And Opportunities

The most fundamental predicament of Chinese products is their lack of brand names. In the absence of world famous brands, China can only bear the heavy burden of the world's factories, and overseas cooperative trading companies, even designers and engineers are making money.

After several US senators issued a "threat" to the RMB exchange rate, Geithner, the US Treasury Secretary, was criticized by many members when he attended the congressional hearing on the 10 th. Geithner turned to "protect himself" and criticized China's "manipulation of currency" and urged the government to take strong measures to force the renminbi to appreciate. Geithner's statement sent us an important signal: for the United States, the exchange rate of the renminbi has always been a problem and has been brought to the attention of interest groups from time to time. "Made in China" has also been affected again.

An important reason why American politicians seize the RMB exchange rate is to find scapegoats for their own economic problems. It is also a "face" to President Obama, which indirectly achieves the goal of doubling the US export that he had proposed before. Because the Chinese market is very important to achieve this goal, once the RMB appreciates, the US products will become "cheap" and pour into the Chinese market. China's exports in May increased by 48.5% over the same period last year, which provided new reasons for US lawmakers to attack.

Another dilemma faced by "made in China" products is that the factors of cheap labor which have long relied on development have gradually changed or even disappeared. In recent years, there has been a sudden surge of wages in China, which is known as the "world factory". Since the beginning of this year, more than ten provinces and municipalities have raised the minimum wage in China, with an average increase of over 10%. Export manufacturing companies have announced wage increases for various reasons, and the national income doubling plan of "doubling about 5 years" has also been passed from experts to the media. At the bottom of the society, manual workers are increasingly eager to share dividends from the GDP of the country's growth. However, while reducing the income gap, the profits of many factories are already too low.

For the Chinese products which are excessively dependent on exports, the gloomable world economic situation has also cast a shadow over them. Yifu Lin, senior vice president and chief economist of the world bank, said on the 9 day that the possibility of the two world economic bottom is still in the pipeline. The world bank believes that even if the efforts of the IMF and European institutions can prevent a debt default or a major restructuring of European sovereign debt, the developing countries that are closely related to trade and finance in heavily indebted high-income countries are likely to be seriously affected.

In the Washington Post, the most fundamental predicament of Chinese products is the lack of their own brands. Because of the lack of world famous brands, China can only bear the heavy burden of the world's factories, and overseas cooperative trading companies, even overseas designers and engineers can earn money. For example, many of Apple Corp's products are made in China, but if a high-end iPhone model sells for us $750 in the US market, "made in China" can get us $25. Due to the lack of independent brand and initiative innovation ability, "made in China" can only "splice" products that others conceive, invent and design, and the development situation is worse. Moreover, Chinese products have become irreplaceable. Some of the world famous brands have moved to Vietnam and other places.

In fact, many developed countries have also experienced China's current situation. Britain was once a "world factory" and later lost its position as a manufacturing power. However, under the brand new packaging of the creative field, the "made in England" product has renewed its vigor and vitality. Today, the proportion of creative industries in the UK's GDP has reached 8.2%, and its growth rate is two times the growth rate of the whole national economy. The export growth of the creative industry is more rapid, with an average annual growth rate of 11%, accounting for 4.3% of the total overseas sales in the UK. Now, there are more than 150 thousand enterprises in the UK related to creative industries, and the number of creative industries has accounted for more than 8% of the total employed population in the UK. Whether or not "made in China" will have the courage and opportunity to "upgrade" as in Britain, it needs the efforts and wisdom of all parties concerned.