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    The Competition between China and U.S. Manufactur

    [Industry News]

      

    Brutal Competition in Comprehensive Economic Structure

    “America’s ‘reviving the manufacturing sector', which is the transformation of the entire U.S. economic development model, will not be confined to the manufacturing industry. America will implement comprehensive reforms in all fields including monetary policy, fiscal policy, technical development, investment policies, human resource development and so forth.” Yang Changyong, a research associate in Institute of Foreign Economy, NDRC, analyzed to the reporter of International Finance News.
    “America will compete with China in a wild range of fields including exchange rate system, labor standards, intellectual property protection, and international balance of payments,” said Yang. Because all industries are not isolated to each other, high-end industries and low-end industries have complex relationship and are mutually restricted in capital inputs, technology development, etc.
    A different perspective came from Huang Renwei, Vice President of Shanghai Academy of Social Sciences. “America will focus on developing high-end manufacturing, while China is in midrange and low-end,” he predicted to the reporter.
    “America’s reviving the manufacturing sector will stimulate China to implement in-depth institutional reforms, including fundamental economic reform, administrative reform, etc.” Yang also reminded that China should be fully prepared to meet the challenge. He said China’s manufacturing industry is “big but not strong”. Industry organization is at the low end and there is lack of innovation drive. China needs to transform the pattern of economic growth, converting “made in China” to the combination of “invented in China” and “made in China”. At present, economic and administrative systems are the biggest barriers of the transformation and development of China manufacturing. Therefore, China should lose no time in institutional reform, which will strengthen technology innovation, human resource construction and entrepreneurial overall social environment construction in manufacturing sector, and help China be well prepared for the huge challenge.



    Time:2013/8/19        
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