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        No large-scale outward migration of manufacturing industry in China

        2019-11-12

        “Sing down” China’s manufacturing industry? At a press conference held by the national development and Reform Commission on July 16, in response to the recent reports on the relocation of Chinese enterprises, especially the manufacturing industry, and the argument about “downfall” of China’s manufacturing industry, Meng Wei, a spokesman of the national development and Reform Commission, pointed out that from the current situation, the scale of the relocation of China’s manufacturing industry is not large, and it is mainly low-end enterprises, which has an impact on China’s economic growth and industry The impact of upgrading and employment is generally controllable.

        “There should be an objective and rational analysis of this,” said Meng Wei, referring to the topic of manufacturing relocation

        It is a normal phenomenon to set up factories in foreign countries. Meng Wei pointed out that in recent years, with the deep adjustment of international industrial division and global industrial layout, China’s manufacturing industry has entered a new stage of transformation and upgrading and high-quality development. In this process, it is normal for some enterprises to set up factories abroad.

        “We have made an in-depth investigation and analysis of this phenomenon, and found that some enterprises are considering the change of factor price to transfer to places with low cost such as labor force and environmental protection. Some enterprises actively explore the international market based on the needs of their own development strategies. Of course, a few enterprises are to avoid the impact of Sino US economic and trade frictions. ” Meng Wei said.

        Some of these enterprises have returned to China. In Meng Wei’s view, it’s not easy for enterprises to move outside. Many factors need to be considered, including the impact of operating costs, industrial workers, supply chain supporting, transportation and manufacturing culture. In the past two years, some enterprises that have already moved abroad have returned to China because of local conditions. “In the recent research, we learned that many shoe-making enterprises from Dongguan closed their factories in Southeast Asia for various reasons and returned to China for development.”

        Meng Wei stressed that in the next step, the national development and Reform Commission will continue to promote the high-quality development of manufacturing industry with relevant parties, focusing on giving full play to the advantages of China’s industrial system and domestic market, focusing on four aspects of policy focus: deepening market-oriented reform, expanding high-level opening up; enhancing the vitality of micro main bodies, releasing the potential of domestic demand market; making up the short board of industrial chain, and improving We will raise the level of the industrial chain, create a first-class international business environment, and further enhance the attraction for the development of the manufacturing industry.

        “I believe that with the implementation of a series of policies and measures, the vast majority of enterprises will continue to stay in China for further development, and more enterprises will come to China to invest and develop and seek new and greater development.” Meng Wei said.

        Since this year, China’s economic operation, including the manufacturing industry, has continued to be generally stable and steady.

        The third industry and household electricity consumption maintained a rapid growth. In terms of power generation, in the first half of the year, the national power generation increased by 3.3% year-on-year, among which thermal power, hydropower, nuclear power, wind power and solar power generation increased by 0.2%, 11.8%, 23.1%, 6.6% and 11.2% year-on-year respectively.

        In terms of electricity consumption, in the first half of the year, the whole society consumed 3.4 trillion kwh, an increase of 5.0% year on year. Among them, the first, second, third and residential power consumption increased by 5.0%, 3.1%, 9.4% and 9.6% respectively on a year-on-year basis, while the third and residential power consumption continued to maintain rapid growth.

        The demand for natural gas increased steadily. In the first half of the year, the apparent consumption of natural gas in China was 1493 billion cubic meters, up 10.8% year on year.

        The growth of raw coal production has accelerated significantly. In the first half of the year, the total output of raw coal of Coal Enterprises above Designated Size reached 1.76 billion tons, an increase of 2.6% year on year, 2.2 percentage points higher than that of the first quarter. China’s railways shipped 1.2 billion tons of coal, an increase of 2.3% year on year.

        Investment projects are concentrated in high-tech industries. In the first half of the year, the national development and Reform Commission approved 94 fixed asset investment projects, with a total investment of 471.5 billion yuan, including 71 projects and 23 projects, mainly focusing on energy, transportation, high technology and other industries.

        Consumer prices rose moderately. CPI rose 2.2% year on year in the first half of the year, in a reasonable range of moderate increase. “In general, China’s economy has a strong ability of self circulation, sufficient supply of industrial and agricultural products, and a strong foundation for stable price operation. It is expected that the overall price level will remain stable later this year.” Meng Wei said.

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