Although the whole world says that China is the world's factory, in terms of the overall level of China's manufacturing industry, it is far from reaching the UK's position in the world back then.

In terms of share, even compared with the United States and Japan, there is still a big gap. For example, in 2004, China was already the world's third largest trading country, but in 2003, China's share in world exports was 5.8 and its share in world imports was 5.3, far less than the UK at that time. The US industrial output value accounts for more than 20 globally, and Japan's manufacturing industry accounts for 15. China has jumped to fourth place in the world, but only accounts for about 5.

In terms of its position in the value chain of manufacturing, China's manufacturing industry has not yet gotten rid of the end. China is still concentrated on the export of labor-intensive products. We have not yet mastered the main core technologies of today's manufacturing industry, and are more just assembling products at the last link of the global production chain.

In terms of global marketing, most Chinese products have neither mastered channels nor their own international brands. Made in China is the link with the most bleeding and sweating in the global industrial chain, but it is also a link with meager profits.

China's manufacturing industry is largely the assembly industry. While importing a large number of raw materials and energy, it also imports core components and patented technologies from abroad. The United Kingdom was the most advanced country in the world at that time. Therefore, China and the United Kingdom had an incomparable position in the world at that time. While the manufacturing technology level was low, the scale of China's local manufacturing industry was too small.

From a deeper perspective, China's financial market has not developed sufficiently, which has also hindered the development of manufacturing to a higher level. From the perspective of the United Kingdom, the United States, and Japan, financial centers are all accompanied by the rise of manufacturing and serve the manufacturing industry. China needs to have a long experience in carrying out financial reform. During this period, some necessary conditions for the development of China's manufacturing industry, such as the enterprise system that matches the modern market economy, and the developed

The capital market and financial services market may lag relatively behind, which will affect the development of China's manufacturing industry.

In fact, China is still a certain distance from the process of "the world factory".

One of the signs of "world factory" is industrialization, but China has not yet achieved industrialization. According to the definition of the National Bureau of Statistics, industrialization means that the agricultural employment population must be below 20, and we are still as high as 50. It can be seen that not to mention reaching the UK's position in the world at the time, China will have at least a few decades to go to if it reaches the level of manufacturing in the United States and Japan.

In Jiang Feng's view, the "world factory"-style economy is unsustainable, whether in terms of the balanced development of China's economy and the world economy, or in terms of China's energy, resources and environmental tolerance. China is not a "world factory" at present, nor should it be a "world factory".

China has a comparative advantage of becoming one of the global manufacturing centers. First, the trend of economic globalization continues to deepen, multinational corporations further refine their production activities, and find the most suitable bases for different production links of a product around the world, resulting in an unprecedented acceleration of the speed of international industrial transfer, and the labor-intensive links of product processing continue to spread to developing countries, so that developing countries like China may become assembly and export bases for capital and technology-intensive products; second, China's politics and society will remain stable; third, China has

A good industrial foundation and supporting conditions; a rich and high-quality and low-priced labor force will not rise significantly for a considerable period of time for a long time; the system gradually integrates with the international community, and joining the WTO process further accelerates this process; it is integrating into the world economy and has a relatively complete infrastructure to participate in international division of labor. Therefore, in the foreseeable future, China will be the most attractive manufacturing base in the world. In the "capital transfer" process with the global background, China is the most important gravity pole.

However, even from now on, China cannot set its goal as a "world factory". Although this statement has its own specific historical meaning, one thing is very clear that China will never become the British-style "world factory" at the time. "world factory" is a concept that matches the steam engine era. The industrialized countries of that year have all entered the post-industrial era. Being a "world factory" may only mean that industrialization has been achieved, and there is still a big gap with today's developed countries.

The industrialization path corresponding to the "world factory" may no longer be able to be achieved in a big country like China in the 21st century.

The great development of chemical industry requires a large amount of resources and energy consumption and huge sacrifices to the ecological environment. These are things that China's current fragile ecosystem cannot bear. This is also one of the reasons why the West calls China the "world factory" while constantly creating various versions of the "China threat" theory.

Another meaning of China's "world factory" is that China's dependence on foreign trade has further increased. At present, China's dependence on foreign trade has reached nearly 70, and imports and exports are still growing at a double-digit rate each year. Such an economic structure is similar to that of small countries rather than large countries. The demands of the United States and Japan mainly come from domestic rather than foreign countries, and the dependence on foreign trade is only between 20 and 30.

Excessive dependence on exports means that potential economic risks and external shocks will be great.

One problem that should be urgently solved in China's economic development is to increase the share of domestic demand in total demand and establish an open-ended major economy that matches China's population size, territory and international status.

China's urbanization and industrialization process, population size and employment pressure all require us to establish a manufacturing industry that produces everything from socks to chips. However, China cannot replicate the history of Britain back then. The "world factory"-style economy is unsustainable in terms of the balanced development of China's economy and the world economy, or in terms of China's energy, resources and environmental tolerance. China is not yet a "world factory" and should not be a "world factory".

In economic development, one of the problems that China should urgently solve is to increase the share of domestic demand in total demand and establish an open and large-scale economy that matches China's population size, territory and international status.

World Factory was once a praise in the nineteenth century, but now it is not a compliment.

The 19th century was the era of large-scale industrial production. The country with the strongest industrial production capacity was the most powerful country at that time, so the world's factories were also an empire that day.

However, after entering the 21st century, the world economy is no longer an era when industry is king. China's world factory name is just another term for OEM, synonymous with low added value, and is by no means a sign of a strong country.

After entering the industrial era, the process can be materialized on machinery and equipment. The social division of labor is further refined, and the assembly line production model emerged. Initially, European and American enterprises used a vertical production model that integrates design, manufacturing and packaging. With the changes in market demand and the advancement of science and technology, some enterprises began to seek changes in production models in order to meet the needs of multiple varieties and small batches of products, and a situation of separation of design, manufacturing and packaging emerged, and the OEM industry emerged.

OEM is to produce products according to the exact specifications proposed by foreign multinational companies. The products are acquired by multinational companies and sold to the market under their own brand.

With the further acceleration of the development trend of economic globalization, OEM demanders may select OEM suppliers on a larger scale, especially moving towards countries and regions with low processing and manufacturing costs.

In the 1960s and 1970s, the economic structure of developed countries changed from labor-intensive and capital-intensive to technology-intensive. These labor-intensive and capital-intensive enterprises turned to neighboring countries and regions for development. Many countries and regions such as the Four Asian Tigers, Brazil and Argentina in South America, all gained huge benefits from it, and export-oriented manufacturing was transferred to areas with lower labor costs.

In Asia, in order to attract capital and technology, Japanese companies quickly occupied the market and first adopted the international OEM production and trade form. The take-off of the four Asian dragons is closely related to OEM. Among them, Taiwan has long become the largest OEM base for PCs in the world, and India has also become the world's largest computer software exporter through OEM. Nike, the United States, has an annual sales revenue of about 2 billion US dollars, but it does not have a production factory. It only focuses on research, design and marketing, and all products are OEM. Its OEM factories are mostly located in East Asia, such as China.

What we lack today is not manufacturing technology, but the mind and consciousness that can make money.

For OEM factories, cost is the core and the key competitiveness of OEM companies. Cost directly determines the survival of the enterprise. The reason is very simple: If OEM costs more than one's own production cost, then why do you still need OEM?

In addition, management is the key, because the quality of management directly determines the cost and product quality. The management mentioned here includes financial management, personnel management, production line management and other aspects.

From an economic perspective, the OEM model is relatively simple. The value created by an enterprise is the value of the processed product. This value includes costs and profits, and its cost of equipment and labor costs are the most important costs. In other words, some of the value created by OEM is the value brought by hardware investments such as equipment and factories, and another important part is the value created by workers.

Since the cost of equipment is dead, whether a company can make a profit depends on how much value the workers create. The important source of corporate profits is the labor costs of workers, that is, wages, welfare, etc. (To be continued. Please search for Astronomy for the novel, which is better, updated and faster!)
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