Made in China to "Created in China"
China is already the world’s number one manufacturing country, accounting for nearly a quarter of the global value added in this field. A survey conducted by Wharton's Maurice Cohen found that China is leading in many industries and that “the situation in which manufacturing is flowing back to advanced economies has not appeared on a large scaleâ€. Although some of the production is shifting to countries closer to its consumers, China remains the center of the so-called "Asian factory" network. China has excellent infrastructure and a large number of hard-working and skilled laborers. Although wages are rising, its labor productivity far exceeds that of India, Vietnam, and other competitors, and it is expected to maintain an annual growth rate of 6% to 7% before 2025.
Yang Minde, owner of Esquel Group, said that the subsidy may feel good, but it will distort investment decisions. The government likes to fund flashy hardware and robotics. However, these technologies need software and data analysis to get proper application. There is no capital investment in these fields. . In any case, most private companies have been innovating at a rapid pace without government promotion.
Changing to “Created in China†Michael McNamara, the owner of the U.S. large-scale foundry company Flexos, said that the product cycle has become faster. China's factories used to serve the export market but are now reorganizing to focus on prosperous local markets. They are wisely investing in automation, worker training, and new methods. He said that in this process, China is "transforming from the world's engine to a true innovator."
Yang Yingchao of Barclays Bank believes that the manufacturing sector is changing from "Made in China" to "Created in China." Taiwan once controlled the high-end electronic equipment parts market, but he believes that many parts suppliers in mainland China are currently very good. He predicted that this area will gradually be controlled by Chinese companies.
China is the world's largest industrial automation and robotics market. Ulrich Spippscher, CEO of ABB Switzerland, believes that the latest robots "enhance the nature of work" because they enhance safety and eliminate the need for heavy work tasks.
ABB’s engineers in China have developed “Chinese Dragonâ€, a robot specially made for the computer industry that sells well all over the world. These engineers said that in many industries, China is still learning from the world, but its electronic equipment manufacturing industry is so developed that the world is learning from China.
Foxconn’s owner, Gou Ming-ming, said that within 5 years, 30% of the company’s laborers engaged in the most boring work will be replaced by robots. These liberated laborers can do more valuable things.
Maintaining a leading position enables manufacturers to maintain their high-quality customers. Nike has seen many of its suppliers move to lower-cost Vietnam, but its 30% supply still comes from the mainland.
What does the national plan indicate the direction of the Chinese government's "Made in China 2025" plan?
Stephen Dale, a consultant at Bain & Company, said that this plan may be successful on those goals that are relatively easy to achieve. The immediate goal of the plan is to improve quality, productivity, and digitization, and to expand the use of CNC machines. He pointed out that all of these have been widely adopted by world-class manufacturers in other countries. Promoting investment may also help China's laggards catch up with the team.
Chinese government planners hope to help companies catch up to the forefront of technology. Their plan involves policies that encourage the use of robots, 3D printing, and other advanced technologies.
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