China's construction machinery, which is the most

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China Construction Machinery Co., Ltd., which is in crisis in Southeast Asia, moves its factory to Southeast Asia, or vigorously develops the Southeast Asian market? This seems to be becoming a trend of thought in the domestic manufacturing industry. The prospect of China's construction machinery exports to Southeast Asia is optimistic. At present, it is also necessary to vigorously explore Southeast Asia and set up factories in Southeast Asian countries to seek lower costs and avoid trade barriers

move factories to Southeast Asia

the bottleneck of manufacturing in China is by no means the rise in labor costs

many people say that manufacturing in China is a success with low labor costs. 2. The rise in training costs is an important reason for the current business difficulties. But this is inaccurate and misleading. If the success of made in China is mainly due to low labor costs, then India has more young and cheap labor than China. Why is it only made in China and not made in India? Africa also has a lot of cheap labor. Why is there no African made labor

it is true that made in China wins with low cost, but the success of made in China is not mainly due to low labor costs, but due to advanced production methods. China has a huge industrial cluster and a detailed and professional division of labor that no country in the world can match. This is the advanced mode of production in China. In terms of spare parts production and product assembly, no one can rival China

the next question is: why does China have a huge industrial cluster and a detailed and professional labor division network, while other countries do not have such a scale? This is due to the state-owned land and the government. 5. In order to protect personal safety, it has a strong ability to intervene in the economy. It is easy to establish huge industrial parks in China, where factories are scattered, complementary and supportive. I once visited a friend's factory, which produces fluid control equipment, located in Chengdu Shuangliu Airport Industrial Park. His products almost occupy the whole Asian market. His factory only produces three parts and is responsible for assembly at the same time, while manufacturers within a few kilometers provide all his parts. Think about it, how can this production mode not be the lowest cost production mode in the world

China has created unparalleled production capacity in the world, which requires strong domestic consumption and strong foreign demand. But now, due to the financial crisis on Wall Street and the European debt crisis, the growth of external demand is restricted, and it is impossible to recover in a short time. Therefore, China urgently needs to shift from relying on exports and investment to relying on consumption, exports and investment to drive economic growth, especially relying on domestic consumption to drive economic growth. But behind consumption is income. It's a joke that people consume without income. It's impossible not to consume with income. There are two sources of income, one is labor income, and the other is asset income. There is a limit to labor income. You can work 24 hours a day at most, and you can't have another minute. Therefore, increasing income mainly depends on increasing asset income. The land is state-owned, which deprives the people of their asset income and inevitably suppresses consumption. Moreover, the government's intervention in specific economic activities will also form investment impulse and consumption depression. Therefore, it was not a bad thing (actually a good thing) for the state-owned land and the government to intervene in specific economic activities in the past, but it is certainly not a good thing today. The successful model in the past is not necessarily the successful model today. Today, China's economy is facing a major issue of structural adjustment. This is the last word, not here

since the success of made in China is mainly not the success of low labor costs, but the success of advanced production methods, on the contrary, the current difficulties of made in China are mainly not the rise of labor costs. China has no artificially high wages and welfare. The rise in labor costs is just the result of the rise in labor productivity. How can it cause difficulties to industrial management? If it is not for some factors that restrict the free flow of labor and the rise of labor costs, this enterprise cannot continue to do so, it must be that labor has created greater value in another enterprise. Logically, in a country where labor can flow freely without artificially high wages and benefits, the higher the labor cost, the faster the economic growth should be, because labor productivity has also increased

we know that the flow of labor from the agricultural sector to the industrial sector will promote economic growth. Because labor flows from the agricultural sector to the industrial sector, labor productivity has increased. We see that the increase of labor productivity leads to high economic growth. We ignore that the increase of labor productivity and the rise of labor costs are one thing. Is it not ABC of the introductory course of economics that wages and remuneration are equal to the marginal productivity of labor? If you are not familiar with the concept of margin, you can directly regard it as labor productivity

we should think about what restricts the free flow of labor. It is not the rising labor costs themselves that cause the difficulties made in China, but what restricts the free flow of labor causes the difficulties made in China. We need to study how much of the rise in labor costs in coastal areas is driven by high housing prices and how much is driven by the registered residence system? How much is driven by the medical system and education system? Why can't low-cost labor in the central and western regions flow to the coastal areas? If enterprises can hire workers at low cost and survive when they move to the central and western regions, the rising labor costs in the coastal areas have a lot to do with problems such as high housing prices, registered residence system, medical system, and children's difficulty in going to school. They restrict the flow of labor from the central and western regions to the coastal areas, reduce the labor supply in the coastal areas, and lead to business difficulties. If we do not distinguish the causes and nature of the rise in labor costs, and simply attribute the difficulties of manufacturing to the rise in labor costs, we will misjudge the root cause and prospects of made in China

yes, the rise in labor costs associated with the increase in labor productivity is always a good thing. It would be a joke to say that the basis of a country's growth is low labor costs. According to this logic, in order to achieve economic growth, we have to deliberately lower wages? And if wages are depressed, the economy will always grow at a high rate? But practice has given us a clear answer: high growth is not in Africa, where labor costs are lower, but in China, where labor costs are higher. Besides, don't we develop the economy to make the people live a good life? If the labor cost does not rise, how can the people's income increase and how can they live a good life? Therefore, if it is really because of the rising labor costs that Chinese manufacturing is in trouble, it is also a happy thing

however, we should overcome and avoid the promotion of labor costs by factors other than the improvement of labor productivity. Any increase in labor costs caused by factors other than the improvement of labor productivity will only bring nightmares to the economy and ultimately make people unable to live a good life

efforts should also be made to reduce manufacturing costs other than labor costs, such as tax cuts, breaking the monopoly of high prices of upstream products, and so on

there is nothing wrong. China's surplus labor has basically run out, and the era of China's participation in international competition by low labor costs has become a thing of the past. But China's demographic dividend is still there. About 60 years later, when I retire, China's demographic dividend will really disappear and China will truly enter an aging society. In Xi'an and Chengdu, many college students earn 2000 yuan a month. Even in developed coastal areas such as Hangzhou, there are still college students who earn 2000 yuan a month. Is it high to turn on the oil pump? Not high. If China can effectively overcome and avoid the promotion of labor costs by factors other than the improvement of labor productivity, and can reduce the manufacturing costs other than labor costs, there is still huge room for the development of made in China. Made in China, it is food, clothing, housing and transportation products. UL has issued UL inspection and verification marks for TVs, monitors, laptops, LED lighting equipment and other products to meet people's basic needs. This industry will always be a sunrise industry, not a sunset industry

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