The Rise Of The Made In China Concept Economics Essay

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China-made industries have built a comprehensive modern fabrication system which has a considerable graduated table and degree on the footing of the “ nothing ” . It has a complete scope of industrial system and a rich supporting concatenation that consist of natural stuffs energy industry, equipment industry, consumer merchandises industry, national defence scientific discipline and engineering industry and electronic information industry. Meanwhile, China ‘s industrial construction is tend to be optimized, the proportion of visible radiation and heavy industry is sensible, the strategic place of heavy chemical industry is farther strengthen, the graduated table of hi-tech industry as represented by information industry, aerospace, biomedicine, new stuffs has leapt to NO.3 in the universe, the export is up to the top two in the universe, and it become the new growing point of China ‘s economic development.

Presently, there are more than 210 sorts of china-made merchandises that the output is rank foremost in the universe. Among these, in 1949, the output of steel in China is merely 0.158 million dozenss, less than one thousandth of the universe ‘s steel production. In 1996, the output of steel in China is beyond 1 billion dozenss for the first clip, and Chinas have become the first steel-producing state in the universe. In 2009, the output of petroleum steel reached 567.8 million dozenss with a year-on-year growing of 13.5 % , the per centum of entire planetary end product increased to 47 % and it is higher than in 2008 by expanded 9 per centum. ; In 1949, The production of rough oil in China is merely 12 million dozenss, it reached to 189.728 million dozenss in 2008, ranks the fifth in the universe ; In 1959, the end product of car in China is merely 16000, it reached to 13.79 million in 2009, and beyond the entire end product of the United States and Japan. We can see that China has become a echt fabrication power.

From “ missiles plus one orbiter ” to “ Shen Zhou VII ” , the fabrication in China achieve a historic discovery and across in a figure of frontiers such as manned space travel, projectile, lunar geographic expedition and GPS, etc. The technological invention system takes endeavors as the pillar is continuously improved, and the ability of independent invention is significantly improved. In 2009, the equipment of the large-scale oil refinery which end product is 10 million one-year that the localisation rate is about 90 % ; the domestic supercritical thermic power with one million kW and the domestic AC transmittal complete sets of equipment with 750 Kilovolts have been put into operation ; A big figure complete sets of proficient equipment such as 4000 dozenss of the big new dry cement production lines and 0.6 million dozenss of ethene and so on that made in Japan have been achieve independent invention.

In add-on to run intoing the domestic demand, “ made in China ” to the universe, more and more people from different states know and love the “ made in China ” . Around the universe, including developed states in Europe and the United States, “ Made in China ” entree to 1000000s of families, and bit by bit occupied every life country, such as kitchen, populating room, bathroom, and sleeping room and so on. Harmonizing to the statistics of general disposal of imposts ( GAC ) , in 2008, the export of China is about 14285.5 billion dollars, with a year-on-year growing of 17.2 % , the market in more than 250 states and parts in the universe could see a presence of “ made in China ” .

3 Contemplations on “ Made in China ”

China ‘s fabrication industry has made singular accomplishment ; it has made enormous parts to china and the universe. But in recent old ages, “ Made in China ” experienced a crisis of assurance often, its ain defects exposed bit by bit.

The instance of “ Made in China ” get involved in trade protection non merely in a big figure, with a immense sum of money, but besides the foreign trade protection has different sorts signifiers, with the signifiers ever-changed. The trade protection of “ Made in China ” faced has the undermentioned features: trade protection is in a prone position, the money involved is increased significantly, the probes of countervailing is in a tendency of rapid spread, a assortment of trade protection steps are frequently superimposed to utilize, the tendency of intercession protection under the “ Bailout steps ” is clear and the sum of the trade protection instances in developing states increased dramatic.

On August 2009, there are 38 instances about anti-dumping in the planetary, which 27 instances against the merchandises made in China, accounting 71.1 % of the entire figure of anti-dumping instances this month. The top few states that have the highest figure of anti-dumping probes to mainland Chinas are Turkey ( 9 times ) i??The European Union ( 6 times ) , The United States ( 5 times ) , Canada ( 3 times ) , Argentina, South Africa, South Korea ( one time ) and India ( one time ) . In the merchandises of the anti-dumping probe, there are 11 instances in Fe and steel industry, it accounted for 42 % of the entire surveyed china-made merchandises ; 8 instances in light industry, accounted for 30 % ; 3 instances in oil and chemical industry, accounted for 12 % ; 2 instances in the fabric industry, accounting for 7 % ; The non-ferrous metals and agro-forestry both have 1 instance, accounted for 4 % .

China is a existent “ fabricating power, trade name a little state ” . At present, there are more than 210 sorts of the manufactured merchandises in China that their end product is ranks foremost in the universe, the end product of major merchandises move the precedency frontward continuously. However, the well-known trade names of China in the universe are one in a million. Lack of the world-known trade name, it lead endeavors can merely be trapped in the low-end nexus of the production and processing in planetary value concatenation. The magazine of the United States which named “ Business Week ” published “ Best Global Brands List 2009 ” jointly with the international trade name group. Coca-Cola ranks foremost with the trade name value of 68.734 billion dollars, but the trade name value of China endeavors has non recognized by research establishments, none in a list. The list shows that a sum of 100 companies in the list, the lowest barriers to entry is 3.081 billion dollars, the sum of the U.S companies is more than half in the list, Japan, German, France and other states besides have several companies in the list, while none of China endeavors in the list.

The study released by China National Bureau Statistics shows: In 2007, the proportion of the value added in planetary fabrication industry had risen to 14 % , Japan are tied for 2nd with China in the planetary fabrication list. The newsman said: China has formed a immense production capacity in the chief countries such as energy, metallurgy, chemical industry, edifice stuffs, machinery equipment, electronic communicating equipment fabrication and transit equipment fabrication and many sorts of consumer goods industries, the end product of major industrial merchandises ranked in the universe. However, the proportion of treating trade in China is excessively big. In 2007, the volume of China ‘s import and export reached to 2173.8 billion dollars, which the import and export volume of treating trade throughout the twelvemonth reached 986.05 billion dollars, accounting for 45 % of the entire imports and exports. Most of these treating trades chiefly produce labour-intensive merchandises, with a small gross ; most of their net incomes in and abroad, the endurance and development of endeavor rely to a great extent on the pull of external demand. Foreign investing could relieve the deficit of capital, spread out export and promote employment to a certain extent for China. However, the chief motivation of the foreign investing is to utilize the labour cost advantage of China, and effort to lock China in the links of processing and piecing low-end of the planetary industrial concatenation for a long clip.

Due to the absence of its ain independent rational belongings rights, deficiency of the nucleus engineering, many of the cardinal constituents of domestic endeavors should utilize other endeavor ‘s trade names, “ Made in China ” merely can non fit with the foreign trade names, merely bring forth for other trade names, and merely make 1 % to 2 % of the net incomes for their ain! In the planetary fabrication industry concatenation, the bulk of China endeavors remained at the low terminal. We produce the Barbie dolls deserving 1 dollar, but in the terminal the retail monetary value is 9.99 dollars in the Wal-Mart of the United States. In the procedure of the monetary value high from 1 dollar to 10 dollars, the value of 9 dollars has been taken off by the other sectors of the industry concatenation. The competition of the industry concatenation is the nexus of “ 6+1 ” , “ 6 ” is six large soft nexus: First is merchandise development, second is the procurance of natural stuffs, the 3rd is long-distance transit, the 4th is treating orders, the fifth is the concern of wholesale, the 6th is retail ; “ 1 ” is the difficult part-manufacturing. The six major parts create a value of 9 dollars, which is the most valuable portion that able to make a upper limit of excess in the whole industrial concatenation. However, they are non control by our China endeavors, the most valuable of the six major parts have been fundamentally controlled in the custodies of the United States and Europe.

4 The manner of “ Made in China ”

One secret for endeavor maintain the fight is the execution of “ distinction scheme ” , which distinguished the merchandises or service offered by the endeavors from the rivals, and set up a figure of alone things in the industry-wide scope ( Michael E Porter.1998 ) . In the epoch of globalisation and knowledge-based economic system, carry out independent invention is the first pick of endeavors to implement “ distinction scheme ” . The bit by bit development of “ Made in China ” is inseparable from the direction invention and the publicity of technological invention, the invention of direction and technological will be the ultimate advantage. Merely trusting on the invention of direction and technological to better the fight of “ Made in China ” , this is the basic manner to acquire “ Made in China ” out of problem.

Now, more and more endeavors are looking for the individual who is advanced, smart and can be flexible to handle issues. Enterprise uses assorted methods to excite the enthusiasm of the staffs, and maximise the services to the endeavor. Staff as the main-body of the endeavor, he must hold a sense of invention. Thought is the innovator of action, it is possible to take technological invention when so employees have a sense of invention. And merely employees have a sense of invention and take invention activities, the endeavor can hold the cultural environment with proficient invention. In the “ Haier ” group, the wages of the scientific and technological individual is determined by the market value created by the consequences of technological invention. The market is the exclusive criterion to find the wages of scientific and proficient individual. Haier has besides cited the successful experience in international endeavor, and carry out the stock system of scientific and technological in the relevant section within the endeavor, it greatly encourages the positive nature of creative activity for the scientific research individual.

Therefore, endeavor should actively enroll the advanced scientific and technological endowment, linked the research workers to the destiny of the endeavor, and promote them to actively take up the undertaking of technological invention, and promote them to lend for the success of endeavor ‘s technological invention. At the same clip, endeavor should hold a good cultural environment to reflect their features, practical and dependable and technological invention. Enterprise could be win the favour of the universe, set up a good, digesting corporate image in the international market by show different, interesting, glorious civilization in the international market.

Accelerate the gait of technological invention means to better the efficiency of invention, and occupy the market in front of the opposition, therefore finally lower the cost of technological invention of endeavor, entree to higher net incomes and win clients. Haier Group developed the deaf-and-dumb person semiconducting material icebox in 30 yearss, win an order from a major infirmary of Nipponese with good quality and addition market enterprise.

To enterprise, velocity is efficiency, is money. If there have a measure slow gait of invention, the endeavor could non take the market in engineering ; it could non hold an absolute competitory advantage. At the same clip, it besides greatly increased the cost of invention of the endeavor. Therefore, endeavor should be accomplish the technological inventions in the shortest velocity and obtain an absolute market advantage.

“ Independent invention ” refers to the citizens, societal organisations, establishments of a state, get downing from the strengthening of the national invention capableness, carry out the scientific and technological invention actively and independent. Independent invention is non wholly closed up to introduce. Expanding and opening up to pass on and collaborate the engineering, present the international advanced proficient degree, absorb, better and re-innovate the imported engineering are besides belong to the range of independent invention. The most of import to be independent invention is to get the hang the enterprise and control over the engineering, make their ain trade name, their ain market, do non profess the engineering and lose the market. Haier successfully developed the “ Patriot I ” and “ Patriot ” , they are to the full embodied that Haier make their ain trade name rely on independent rational belongings rights.

Any company should adhere to independent invention, work out jobs and run into the demands of clients creatively, open up the dynamic market with independent, use the patent protection for their ain rational belongings rights and independent proficient to guarantee the technological invention developed swimmingly. Self-developed merchandises enable the endeavor rule the market by the overpowering advantage, make their ain market with their ain engineering trade names, and besides to cut down the investing of endeavor, higher the morale of technological invention of employees.

The market is like a swayer to mensurate the success or failure of technological invention and whether right or non. Because the concluding result of technological invention of endeavor is back to the market and accept the trial of the market. Through the feedback of consumer to place the strength and failing, the invention result and the entree grade in market presently. the international market is comparatively unfastened, the communicating and cooperation of proficient among states has greatly accelerated the gait of technological invention. Therefore, the technological invention of endeavor should concentrate on the international market ; develop the taking trade names in the international market with the degree of advanced engineering. In the international market, forces, capital and the market is shared, the trade names and engineerings should be alone to the endeavor. Haier ever adhere to the rule of “ market-oriented topics ” , “ outcome commercialisation ” , “ mark international ” when they develop the merchandises.

Market demand is the research way and gazing point of technological invention, the endeavor must understand the market demands and create merchandises to run into this demand if the endeavor wants to run into the demand of market. The endeavor could hold their ain market merely when the endeavors produce the merchandises that people need. Without the demand-oriented, everything is nil. In the procedure of the invention, endeavor may be rely on the international market, cooperation with foreign endeavors, debut of capital, hi-tech endowment and even the advanced engineering. Finally, accomplishments of the scientific and technological may be exported to international markets and to run into the demand of international market. However, it need to be clear finally is that the highest market mark of international is to inquire the endeavor to the line of international market, create the engineering merchandises that could travel abroad to run into the demand of international market.

The competitory advantage of state comes from competitory industry, while the competitory advantage of advantage industry comes from industrial bunchs. Industrial bunchs can organize the economic systems of graduated table, economic systems of range, specialisation division and cooperation of labour and back uping services to better productiveness.

Such bunch is based on the large-scale fabrication endeavor of engineering and capital-intensive, takes the SME of specialised production and back uping services as the external, and with a clear perpendicular division and the invention ability of the bunch technological is strong. In general, the bunch have been created the trade name in the state and have a greater impact, the ascent of bunch chiefly driven by big endeavors, focal point on the market enlargement particularly the international enlargement, through the industrial restructuring and incorporate selling schemes in the bunch to transport out cross-border amalgamations, restructuring and acquisitions and amalgamations or registered companies and trade names in foreign states straight, take part in the international industry criterions actively, bit by bit better the right to talk and the market place of the planetary value concatenation to accomplish bunchs export-oriented international development in a full scope ( Uwe Blien, 2008 ) . Such ascents need to establish on the technological invention of big endeavors and the spread of the accomplishments to back uping little and average endeavors. And through the supply concatenation direction to organize a cyberspace of synergistic development and organic coordination, it can implement the whole ascent of bunch efficaciously.

This type of bunch is characterized by invention and diffusion of engineering and cognition, carried by composites of high-tech and industrial Parkss, driven by the manufacturer, has a clear consequence of cognition web. Technological acquisition and imitation of export-oriented hi-tech industry bunchs is more, the independent invention is non plenty, the internal association is weak, the chief way of the bunch ascent is “ introduction+ imitation-digestion and absorption-the merchandises of independent rational belongings rights-brand ” , the re-innovation activities of research, develop, design and so on is the strategic value ironss of the bunch re-escalation. Endogenous hi-tech industry bunchs grow through the endogenous growing mechanism of “ creative-venture-innovation ” , promoted by the scientific research of independent belongings rights, the ability of technological invention is strong, but there exist some phenomenon such as the separation of research & A ; development and production, hapless industry back uping, on the early phase, it as a single-piece production manner of “ Faradism ” . The chief way of the bunch ascent is “ research elements accumulated for a long time-research of the specialised scientific and technological-the consequences industrialisation ( hatching ) -spread of technology-modular production-consolidation and enlargement of the market-brand ” , in which the hatching and engineering diffusion are the strategic value parts of the bunch ascent.

Most of the “ Made in China ” is the labour-intensive processing sectors of the traditional labour-intensive industries such as fabrics, vesture, places, bags, playthings and the hi-tech merchandises such as information engineering merchandises, consumer electronics. For these traditional fabrication industries, mature engineering industry, the merchandise invention is no uncertainty the lasting way of development. However, under the state of affairs of merchandises become more similar in a period of clip, the focus way of attempts should be implemented “ low-priced leading scheme ” to cut down the cost of merchandise, better the public presentation and quality of merchandise.

In the instance of fabricating engineering comparatively mature, unable to obtain the discovery of quality in the short term, the endeavor can creatively utilize sophisticated engineering, through procedure reengineering, application of new engineering or retrace the production organisation to better the input-output ratio, cut down the cost of merchandise, and better the fight ( David Knights, Hugh Willmott.2000 ) . Haier group in the procedure reengineering, one is from the beginning of logistics until the last production, it is manufactured base on “ order flow ” . That is a procedure of nexus the internal to the market topic to the demand of users. Enhance their fight through research and development, create the new demand of clients and finally to make new orders. The 2nd is constructing a planetary selling web ; obtain orders from client ‘s resources in the planetary. The 3rd is take the orders obtained by commercialism flow and created into production, from the past production in a big measure to mass customization. It forms the nucleus procedure system of the research and development straight faced to market ; complete logistics, concern flows, and better the nucleus fight of enterprise-specific.

The production system of Toyota has been the theoretical account for planetary fabrication companies, and the flexible production is one of the chief content. The flexible production bit by bit replaced the stiff production by the advantages of rapid contemplation, production flexibleness, sorts of the merchandises and so on. Flexible production can work out the struggles of economic systems of graduated table and multi-species in the mass production system, while better the flexibleness of fabrication industry and productiveness, so at the premiss of guaranting the quality of merchandise to shortening rhythms of production, lower the cost and finally to enable the production of little and average contend to mass. In the practical application, the flexible production line can be connected multiple devices ( largely is the particular equipment ) together, accompanied a production line by automatic bringing unit. The flexible production line system includes the automatic processing, logistics, information and package systems. In recent old ages, most china ‘s fabrication industry includes the Han Dan Iron and Steel makers are seeking to run the flexible production system in their ain production line.

At present, China is still in the trade name cultivation phase, it is still really hard to advancing the trade name cultivated by pulling on the experience of the trade name power ; take the authorities as the centre. Particularly, we can non disregard is that in the clip of “ Made in China ” unprecedented prosperity and go a world-word, we are non merely paid a immense monetary value, but besides hidden a batch of dangers. One of the most serious jobs is that because of the “ Made in China ” conquer the universe by monetary value advantage in a long clip ; many companies chiefly earn the net income by the measure, and overlook some quality issues in the procedure of production. Some merchandises with quality defects are exported to abroad, it amendss the repute of “ Made in China ” , and allow “ Made in China ” faced the serious “ crisis of assurance ” .

On the one manus, there must be more independent trade names of engineering industry go to the universe, such as Huawei, Haier, Lenovo, Bosideng. If the abroad market turning bigger, the proportion in the trade in higher and higher, the proportion of hapless quality and uneven trade names even the non-branded merchandises in the trade are smaller, the image of “ Made in China ” will be more and more wellness. On the other manus, the execution of national selling and construct the soft power for our state. National selling scheme can larn from the corporate scheme of 4P ( He Hao, Zhou FangWen.2009 ) : ( 1 ) Product-the quality of the state ‘s image. Based on the first-class traditional China ‘s civilization and values, adhere to the way of socialist advanced civilization and abandon the contents which is incompatible with the development of modern society ; strengthen the necessary character of builders, it is besides the quality of authoritiess, concerns and persons. ( 2 ) Location-the image place of state. Carried out a series of activities to construct a political image with the construct of “ go a great powerful state with responsible in the international community ” . Focus on the publicity of China ‘s glorious history and traditional civilization ; at the same clip stress the image of modernisation state, so that the international community and foreign people understand China with the China ‘s civilisation deposition of 1000s of old ages is an antediluvian. However, the development of China ‘s economic system, societal and engineering is besides really modern, and therefore is really of import to set up a “ cultural image ” for China. ( 3 ) Channels-the transmittal of the state ‘s image. Establish the professional sectors for explicating a comprehensive national selling scheme, and organize the activities between assorted sections. With the non-profit societal organisations and some civil society organisations, such as the China ‘s community ; and some manners such as folk art and the communicating of the academic, touristry could besides better the image. ( 4 ) Promotion-promote and ease the state ‘s image. China organized a series activities of “ Chinese civilization twelvemonth ” with the individuality of host, the Chinese Cultural Festival show the appeal of China ‘s civilization to the universe, strengthen the international individuality and besides promote the image of China ‘s civilization, heighten the attraction and entreaty of the state ‘s image, and beef up a solid foundation for soft power.

5 Decisions

The fabrication industry of China on the early yearss is about footing on “ nothing ” , and deductive a brilliant reading of the many vicissitudes with hard-working, assurance. In the 60 old ages, “ Made in China ” has acquire the superb accomplishments: the end product of merchandises increased significantly, the quality improved significantly and step into the international advanced degree ; the accomplishments of independent invention is outstanding ; the cheap and good China merchandises has brought benefits to the people around the universe. In 2009, the myth of “ Made in China ” suffered heavy losingss face the planetary fiscal convulsion. Analyze the ground, in add-on to the international factors of foreign trade protection ; the more of import is the built-in “ Mishap ” of “ Made in China ” . Lack of world-renowned trade names, the proportion of treating trade is excessively big and in the low-end of the universe industrial concatenation.

Where is the manner of “ Made in China ” ? You can happen the reply from the undermentioned words:

Focus on the proficient invention, actuate the nucleus fight, implement the bunch production system, create the competitory industries ; the debut of procedure reengineering and flexible production, the execution of “ low cost leading scheme ” ; beef up the edifice of soft power, heighten the image of “ Made in China ” .