Chapter 1090 Low-Tech Growth

Pao Dan's disease is more serious in the southeast, and the group's research lasted for half a month. It went back to January of the second year.

The winter in the southeast coast is actually quite cold. The cold here is different from that in the north. It is wet and cold, which can frostbite people.

If Fan Wubing didn't feel that there was any winter in Beijing, then he felt a little bit unbearable here, especially because there is no heating infrastructure here. It relies entirely on electric stoves and air conditioners for heating, which easily makes the air dry and eventually makes people angry.

But if you don't do this, you really can't stand such weather.

At the beginning of the year, Walmart, the American retail giant, decided to move its Asian procurement center from Hong Kong to Luohu District, Shenzhen. The president of the China region told reporters that they found the largest seller.

In the Fortune Global 500 announced not long ago, Walmart ranked first with an operating income of nearly 220 billion US dollars. This is also the first time in history that a service industry company has become the leader of the Global 500. Walmart's total purchase of goods in China this year is 12 billion US dollars, equivalent to the total trade volume between China and Russia.

According to calculations by a New York Times columnist, if Wal-Mart were a country, it would be China's sixth largest exporter of goods and eighth largest trading partner.

The "Made in China" wave that began around 1998 has become more vibrant this year. Chinese products with good quality and low prices have finally threatened the world and have become the center of attention. For example, in order to prepare for the World Cup in Korea and Japan, a toy factory in Yangzhou, Jiangsu Province, produced 300,000 World Cup mascots, a clothing company in Yiwu, Zhejiang Province, produced more than 2 million fan cheering flags and hundreds of thousands of fan fakes, and a factory in Fujian Province provided millions of fan uniforms, wrist guards and football socks.

The National Bureau of Statistics of China announced at a press conference that China's comparative advantage in the economy is still in the manufacturing industry. The economic growth in the past 20 years has mainly relied on the growth of the manufacturing industry, and the added value of the manufacturing industry has basically remained at around 40% of the GDP.

Vanadium

According to preliminary estimates, the output of hundreds of manufactured products in China ranks first in the world.

Since 11 years ago, China has attracted more than 230 billion US dollars in investment, accounting for nearly half of the total in Asia. Manufacturing is the most important investment area. China has become the world's fourth largest producer, and Chinese manufacturing is rising worldwide.

In terms of regional structure, Chinese manufacturing has formed three world-class manufacturing centers in the Bohai Bay, Yangtze River Delta, and Pearl River Delta. The total population of the three regions accounts for more than one-third of the total population of the country. The land area is less than one-tenth of the country, but it has created 57% of the GDP and 66% of the total industrial output value.

In terms of foreign trade, it accounts for more than 85% of the country. The use of foreign capital is also close to 80% of the country's use of foreign capital.

Among the exporting enterprises, small enterprises have an absolute advantage in number, and in terms of output value, large enterprises and small enterprises are almost the same.

Although state-owned large enterprises can better reflect the advantages of large-scale production in the manufacturing industry, their room for growth is limited. Among small enterprises, emerging private manufacturing enterprises represent the new forces of the manufacturing industry. They have developed rapidly in recent years and are the main driving force for the rise of Chinese manufacturing and the main driving force for future development.

It was also from this year that a real joke began to circulate in various versions: many people bought a lot of souvenirs and fashionable goods when they traveled abroad, and when they returned home, they peeled off the labels and found that they were all made by the Chinese government. Behind this joke that made people laugh and cry, there was a special pride.

Made in China is a new term that suddenly emerged this year, or it is an old term, but it was suddenly activated and given new meaning this year.

Under the premise of sluggish world economic development, the prosperity of China's economy, due to various reasons such as global economic integration and comparative advantages, has made the world increasingly feel China's existence and power.

Just as the rise and fall of great powers confirms the rise and fall of manufacturing, from the former British Empire to the United States, the only superpower in the world today, from Germany that provoked the two world wars to Japan that created the East Asian miracle, there is no exception. Even the later East Asian Four Little Dragons all took manufacturing as the pioneer of development.

Today, the wave of world economic integration. The opportunity of manufacturing has come to China's door.

Although such comments are sonorous and powerful. However, only half of the facts were observed. In fact, in the eyes of people like Fan Wubing, encouragement has a greater effect, but it will take time for the Chinese public and public opinion to have a deep understanding of Made in China.

In fact, from the beginning, the whole advantage of Made in China lies in the low price.

An example can clearly show the essence of Made in China. Guangdong Galanz is the world's largest professional factory producing microwave ovens. Its factory area stretches for three kilometers. By this year, the output of Liyis has exceeded 12 million units, accounting for 10% of the global market share. "According to Galanz insiders, their only secret is to maximize the advantage of low labor.

The important upstream component of microwave ovens is the transformer. The price of Japanese products is more than 20 US dollars, while that of European and American companies is more than 30 US dollars. Faced with the impact of Japanese goods, European and American companies are in great pain.

Seeing this situation, Galanz negotiated with American companies and gave them machines to make, and paid them US$8 per unit based on the current American production. Americans feel very good. They can get eight dollars for free without having to do anything themselves. Where can they find such a good thing? So they quickly moved the production line over.

Since the wages of Galanz employees are very low, and workers can come in three shifts 24 hours a day, there are actually only one or two days a week where they are producing for Americans, and the rest of the time is almost spent enjoying free dinners. Therefore, Galanz Sweeping the domestic market.

Internationally, its low-price strategy soon made transformers useless to the Japanese.

So Galanz went to negotiate with the Japanese again. He offered to give them five dollars per unit and let the Japanese also rent the production line to them.

In this way, production lines from many countries gathered in Shunde, thus establishing Galanz as the leading manufacturer of microwave ovens in the world.

If the story of Galanz vividly illustrates the source of the cost advantage of Chinese manufacturing, then the story of Bobbie doll can show the position of Chinese goods in the value chain.

Barbie is the most popular children's brand toy of the Cosney Company. It is sold in 120 countries around the world every year, and its main manufacturing base is in China.

A Barbie doll that retails for $20 in the North American market has an FOB price of only one dollar from a Chinese factory. This dollar includes the costs, profits, and taxes of the manufacturer and distributor.

The twin engines of China's two major markets, foreign trade and domestic demand, have been launched, allowing the macro-economy to show prosperity that has not been seen for many years. The haze of the Asian financial crisis has dissipated, and the theory of China's industrial collapse after joining the transformation is no longer self-defeating. Even people who have always been unfavorable about China's economy have had to change their views.

When former Japanese Prime Minister Hashimoto visited China, he told CCTV reporters, "To be honest, I envy you very much. Japan has been unable to solve the economic problem of inflation, while China's economy has been able to maintain a growth rate of more than 8% for several years. Growth. In addition to envy, I am still envious.”

In one year, 30,000 foreign-invested enterprises settled in China, attracting more than 50 billion U.S. dollars in foreign investment. The annual domestic private investment growth rate reached 18%, twice the increase of the previous year. In Xijiang and Guangdong In other provinces, private investment accounts for more than 60% of the province's total social investment, and the growth of foreign trade exports exceeds 20%.

According to statistics from the World Bank, China's per capita gross national product has approached US$1,000. In the past seven years, the United States has only contributed 20% of global growth, while China's proportion has been 25%. .

Because of this, there has been some complacency in the country. It seems that in a few years, we will be able to surpass the United States.

In this regard, Fan Wubing said in the New Year's message of Fan Investment Group that the growth of low technology may develop rapidly in a short period of time. In particular, there will be an explosive breakthrough in the total manufacturing volume, but there will also be many problems that will come with it. You must know that most private enterprises in China have not yet provided workers with protections such as three insurances and one fund, and their salaries are far lower than local standards. It can be said that this is a way to kill the enemy by three hundred and lose one thousand. practice.

If things go on like this, China will not be able to develop real high-tech enterprises and will only become a cheap manufacturing factory in the international market. Once the international situation changes and the economic order experiences relatively large fluctuations, those companies that are completely dependent on it will be the first to bear the brunt. Processing of cheap goods to survive in the international market.

At the same time, Fan Wubing also pointed out some domestic problems, such as the lack of technological innovation with independent intellectual property rights, the lack of truly internationally advanced precision processing manufacturing, the lack of application of new materials and new technologies, and the lack of cultivating a new era. Mature system of technical talents, etc.

All in all, Fan Wubing poured a large plate of cold water on him, making everyone feel very unhappy.

The most outrageous thing was when Fan Wubing interviewed him on CCTV and asked him his personal opinions on the national football team's qualification for the World Cup. Fan Wubing said very clearly, "I feel that instead of being unable to enter, I have become even more depraved! I used to be embarrassed behind closed doors, but now I am embarrassed internationally! If they can even have one goal in the World Cup, Ball, I will automatically twist off the head and give it to them to play as a ball!”