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6 crucial essential factor of Chinese manufacturing industry
From;    Author:Stand originally

Factor of production: By compare an advantage to change competition to the advantage
China is on primary factor of production the advantage is clear, among them concentrated to labor model for manufacturing industry, the biggest comparison advantage namely labor dominant position.
Current, china still is the area that labor cost advantage has most on the world, short-term this kind of advantage will still last. World large cartel can report think, the system of sweated burgeoning economy that includes China inside still is the area that cost competition advantage has most on the world, standard of wages of employee of our country manufacturing industry is in inferior position.

But the factor that considers productivity, the dominant position is not as large as wage gap, 40% what unit labor cost of China is the United States. In addition, population of age of our country working occupies the proportion of total population to will be in very high level inside a long time, and 2005 ~ during 2015, will still maintain constant growth, but the advantage is narrowing gradually.

Additional, advantage of resource element gift is being changed infirmly, reduced the capacity that the industry can expand continuously to the dependence of resource. In the meantime, the rise of the land of our country and price of natural resources of other energy resources weakens competition ability, but the structure of education that expands stimulative labor supply appears to be improved apparently, technical innovation improved labor productivity.

In own research and development (R&D) respect, enterprise of our country manufacturing industry develops ability weakness independently, lack the new and high skill that owns own intellectual property. As industrial structure upgrade to need with international market competition, in recent years our country throws year after year to increase to the capital of research and development.

Demand: Domestic demand has international representative

In industry of equipment of mechanical, communication, software, demand of our country market is capacious, and grow quickly. whole, domestic demand has international representative, have international like industry of machine of our country project, shipbuilding, machine tool representative. Current, our country client is not quite captious still, but the requirement is promoting. Because most industry is alive the bound is not banner, create low end the industry shifts to an earlier date the situation of in short supply of industry of saturated, high end, make industrial innovation, industry upgrades pressure is great, force an enterprise to move toward an international market from mainland.

Relevant industry: International competition ability is had at the beginning of relevant industry

whole, machinery is made, the industry has had definite international competition advantage related communication equipment etc, and international competition advantage is in promotion. Be like: Chinese black, nonferrous metal has international competition ability at the beginning of treatment industry, domestic steely price, aluminous price under international market price; Industry of marine, shipbuilding has China very strong international competition dominant position; Chinese chip makes an industry rise abruptly quickly, communication equipment industry has begun to be in world chasing the deer-fight for the throne communication market.
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