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The problem is that the Internet is now changing manufacturing, just as it changed the publishing industry. Nowadays, as long as you have access to the Internet and have the production tools on your computer, you can become a manufacturer. This lowers the barriers to entry and allows many small-scale entrepreneurs to become manufacturers.
This shift may have far-reaching implications. The influx of large numbers of small entrepreneurs has caught the attention of big manufacturers. Large-scale production companies dealing with large orders will also be affected, and China, as the world's largest large-scale manufacturing base, is the target of shock.
Because for the manufacturers at the beginning of the business, the large orders between China and China are very expensive, and the small orders involve high freight rates, which are all they don't want. They may look for more flexible suppliers closer to themselves. This means that China's dominant position in the manufacturing sector may face serious threats, and this situation will soon come.
China has always relied on low-cost and efficient labor to sell goods to developed countries. For decades, such business models have maintained good operations. But if Anderson is right, then this situation will change. This will make other costs, including shipping costs, even more important. In this way, the location is crucial.
All of this suggests that a significant portion of the market share may be transferred from China to developed countries and neighboring countries of these developed countries. So what can China do? China needs to rapidly upgrade its manufacturing base. In economic terms, it is to enhance the value chain.
China needs to make major changes, such as small entrepreneurs need to be more encouraged in terms of taxes and fees; need to modify the legal system to increase competition; more transparent and standardized in the issuance of licenses, provide security for manufacturers' business activities; reform education Institutions that encourage innovation and creative thinking.
Most of the discussions surrounding China's future reforms focus on consumption issues, but it takes a long time to transform into a consumer-oriented economic development model, during which time manufacturing will remain the main force driving economic growth.
China’s dominant position in the manufacturing sector will soon face threats
Zyzhan guide : At present, everyone is paying attention to China's economic data and the possibility of a hard landing in the future. But no matter what some people think, China's credit crisis will always end. This article will explore an issue that may have a greater impact on China's future economic growth. Not many investors in the industry are aware of this problem, but in the technical field, this is well known.