The Way Out In China: &Nbsp, The High-End Breakthrough

Over the past thirty years since reform and opening up, China has created the "China miracle". The dream of a powerful country since 1840 has been in the dark.

Under such circumstances, many people put forward that after China has completed its initial strength, it should move towards the high-end of the global industrial chain and rapidly realize industrial upgrading.

Before that, Geely's acquisition of Volvo seemed to be the footnote for the future direction of Chinese enterprises.

It is interesting to note that in the announcement of the State Council on foreign investment review the other day, the equipment manufacturing industry was also included.

This is a sensitive signal.

Although China has become the world's second largest economy, there are also serious worries: in the high-end field of the global industrial chain, China has been blocked by the developed countries in Europe and the United States. In the low end, China is facing the potential huge competition between Vietnam and India.

China's industrial economy has become the danger of sandwich biscuits. China is gradually facing the dilemma of "two line operations".

In addition to a few private enterprises such as HUAWEI and Lenovo, the top 500 list of Chinese enterprises in 2010 was basically monopolized by state-owned enterprises, while the top 30 were state-owned enterprises.

The top ranking private enterprise, HUAWEI Technology Co., Ltd., ranked the thirty-seventh place.

Among the selected enterprises, the proportion of high-tech enterprises and emerging energy enterprises representing the future industrial direction is very small.

At the same time, Chinese enterprises have not yet produced enough influential enterprises in the world system.

China accounted for 30 seats in the world's top 500 enterprises in 2010. In that year, China's GDP accounted for 8% of the world's total, and the actual GDP was more than 10%. According to this ratio, the proportion of Chinese enterprises entering the world's top enterprises was low.

At the same time, the Chinese enterprises entering the world top 500 are monopolistic enterprises, and the truly competitive and market-oriented enterprises are almost blank.

The proportion of competitive enterprises in the world's top companies is very low.

At present, China's most influential industries in the world are mainly concentrated on non mainstream industries represented by shoes, socks, lighters and sewing machines, which are characterized by low added value and low technology content.

In these areas, with the gradual increase of domestic labor costs, China's advantages have gradually weakened, and gradually replaced by other Asian countries.

India and Vietnam are especially worth mentioning.

The labor force price in India is more advantageous than that in China. In recent years, in the crisis of China's textile industry, India textile enterprises took the lead and became the second largest textile country in the world, which posed a great threat to China's textile industry.

In the toy market, many European and American toy dealers have regarded India as an alternative to China.

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Recently, high level frequent inspections in the country have repeatedly reiterated the need to adjust the income distribution of residents.

In the future, people who bid farewell to low-end consumption because of rising incomes will create a vast mass consumer market, so that Chinese enterprises can get rid of the low-end market and achieve natural upgrading from low-end products to mid end products.

At the same time, under the pulling of huge consumption, it is more realistic to achieve the first breakthrough in the mainstream industries.

In the future, "the rise of the middle end and the high-end breakthrough" will become the way for the development of the whole nation and local governments.

What China needs more is the rise of popular mainstream industries in the world rather than high-end industries.