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Manufacturing sector ready to gear up with new blueprint

By Wang Wenwen (Global Times)    09:31, May 20, 2015
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The State Council, China's cabinet, has unveiled a national plan to enhance the competitiveness of its manufacturing sector. The blueprint, "Made in China 2025," aims to transform the country from a factory for the world to a leading manufacturing power over the next decade.

The manufacturing industry has served as a driving force for China's economic miracle over the last 30 years, since China launched its reform and opening-up policy. This industry also helped China integrate with the world economy. China has gradually taken a leading share in the global market, though at the lower end of the production chain.

In her book A Year Without "Made in China,"author Sara Bongiorni gave an entertaining account of how "Made in China" goods affect almost every aspect of American lives. This is supposed to make Chinese people feel proud, but as the global economy develops, Chinese consumers find they have no domestic brands to bet on and "Made in China" goods are labeled as low quality or even fake commodities.

The decades-long push into low-end manufacturing and export-led growth seems to have run out of steam and many began to lament that China's economy is not as robust as it was. Early this month, the HSBC manufacturing Purchasing Managers Index indicated that China's manufacturing sector in April gave its weakest performance in a year, due to shrinking domestic demand and rising labor costs.

Such changes also brought pressure from other Asian economies where labor costs are lower. In March, Microsoft shuttered two factories in Beijing and Dongguan and chose Hanoi, Vietnam, to be the focus of its phone manufacturing. Other manufacturers such as Samsung and Toyota are also moving to Southeast Asia.

Moreover, developed countries are drafting their strategies in the manufacturing industry to boost their own merits in the global market. The US initiated a National Network for Manufacturing Innovation program in 2013 to create a competitive infrastructure for US industry and late last year, President Barack Obama signed the Revitalize American Manufacturing and Innovation Act into law.

As China's economic development enters a "new normal," the process is no longer simply expansion but structural upgrade. Both internal and external factors will stimulate the transformation of China's manufacturing industry.

The "Made in China 2025" plan is a display of effort and courage. China's manufacturing enterprises hopefully can promote innovation and raise their competitiveness.

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Editor:Zhang Yuan,Yao Chun)

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