British authorities report: China has become the global supply chain center

  • Date: Feb 17, 2017
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British market research firm Ma Kite recently released a report that China continues to be the same as the procurement destination, “is no longer the object of cheap outsourcing business,” and “became the center of the global supply chain.” This has changed the long-term view of China’s “world factory”.

China, which controls more of the global supply chain, is shifting the global trade model

“As the world ‘s second – largest economy, China has imported a large number of raw materials and parts from aluminum to microchips and has been processed into products such as Apple’ s phones and George Holman ovens. The Wall Street Journal reported that over the years, this import and export led to the prosperity and development of global trade, making China one of the most important export destinations. Today, China, which controls more of the global supply chain, is transforming the global trade model.

The report, called “Global Sourcing Survey Trends”, is an annual survey of global sourcing activities and procurement executives aimed at assessing the global risk environment and procurement trends, with high authority in the industry , Persuasive and practical. The report pointed out that China’s role in the global supply chain continues to strengthen, has crossed the low-cost suppliers “traditional role.”

British “Independent” commented that, has been talking about China, people’s minds seem to always emerge, such as “the world factory” like the representative of the screen, in fact, from the report of the people of the company can be drawn Conclusion that such an association is “no longer correct and appropriate”.

For many years, the global large-scale enterprises have been increasing the share of manufacturing business in China, using China’s highly competitive labor price advantage, earning greater business value, seeking more value-added space The However, with the continuous rise of China’s comprehensive national strength and the continuous improvement of people’s living standards, China’s labor wage level continues to rise, which objectively reduces China’s cost-sensitive enterprises of the original attraction, the traditional low labor cost advantage is Getting weaker and weaker.

According to data released by the International Labor Organization, the average wage of Chinese residents has doubled compared with 2006. Standard Chartered Bank, the world’s leading research director of the paper to the Chinese manufacturing labor wage rise as a “subversive trend.”

Professor Roberts, Professor of International Trade, Westminster Business School, UK, “fully recognized” the report of the company. He said in an interview with reporters that the outside world should re-evaluate China, to correct the formation of the old concept of China, re-judge and examine China’s global supply chain, the role of the industry chain positioning and play an important role. In Roberts’s view, China’s former “world factory” in the global supply chain and the industrial chain position is moving forward.

China’s traditional industries to upgrade and enhance the domestic and foreign investors to provide new market opportunities

Markett’s report argues that, in fact, there is evidence of support for China as a low-cost purchase destination. Margaret economist Paul Robinson pointed out that the proportion of respondents who considered China a low-cost purchase destination was less than 50% for the first time in 2016, down from 70% in 2012.

The Financial Times reported that intermediate products and services from different parts of the world into the finished product production, the global supply chain in global trade accounted for nearly 80%, including about 12 trillion dollars in intermediate products and services Trade, “it has begun to change the world.” Standard Chartered Bank previously released a study that the next 10 years, the nature of the global supply chain changes will reshape the global trade pattern. As the largest source of global supply chain in China, will be stripped of a large part of low-cost manufacturing.

In the view of the prayer ceremony, ASEAN and India are likely to benefit from the low-cost manufacturing migration, Bangladesh and Africa will also share a share. China to re-access to infrastructure construction space, at the same time as ASEAN and other economies, equipment, equipment suppliers. Prayer believes that this shift will clearly enhance China’s emerging market economies in the manufacturing and services industry in the global supply chain position, to consolidate its export strength, in fact, China and other emerging market economies in the global exports Accounting for higher than the developed economies.

China has top-of-the-range infrastructure, skilled labor and plants that rely on process innovation to flourish. All of them have been deeply embedded in the huge supply chain of “Asian factories”, able to quickly mix parts and raw materials from around the world and make rapid adjustments based on unpredictable tastes from consumers around the world. United States Peterson Institute for International Economics, senior researcher Brown Sharly no secret that the global supply chain is now mainly concentrated in China. If an American plant is withdrawn from China, it could lead to the collapse of the entire supply chain, which would be disastrous for US companies.

Now, China’s implementation of innovation-driven development strategy, to promote public entrepreneurship, innovation. The development of the new economy has brought new hope, opportunity and vitality, created a lot of employment, but also revitalize some of the excess capacity and idle assets, transformation and upgrading of traditional industries for domestic and foreign investors to provide new market opportunities. According to a report released by the Boston Consulting Group in 2016, China as the world’s manufacturing center, with cloud computing, large data and artificial intelligence as the representative of the industry 4.0 new technology will become the key to improving manufacturing efficiency.

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