There Is A Particularly Impetuous Atmosphere In China'S Economy.

The central economic work conference will focus on revitalizing the real economy as one of the four priorities in 2017.

This is relatively rare in recent years. On the one hand, it shows the importance of high level to the real economy. On the other hand, it also shows that China's real economy is facing many difficulties at the moment.

In fact, it is difficult to talk about the revitalization of the real economy, but it is easy to say it is simple.

We can start with Cao Dewang talking about the tax burden and the reduction of the cost of logistics and energy, so as to really reduce the burden of enterprises.

This year, what some entrepreneurs said to me makes me moved. They only hope that the tax burden can be reduced to the point where they can live, and they will be satisfied.

As long as they live, there is hope for innovation and upgrading.

If the cost is too high to survive, innovation is really empty talk.

Recently, Cao Dewang, the king of glass, accepted the first financial interview because he announced that he would invest 1 billion dollars to build a factory in the United States to make car glass.

Speaking of why Cao Dewang went to the United States to build factories, he calculated the amount of money: the land in the United States basically did not need money, the money to buy the land, the government finally subsidized the return, which means that no money was spent; two, the energy price of the United States was cheap, the electricity price was almost half of that of China, the natural gas was only 1/5 of China, and the three was that the logistics cost was cheaper than that of China. In 2015, China's logistics income was 10 trillion and 800 billion, accounting for 16% of the GDP, although it has declined compared with the past, but it is still far higher than the United States; four is the overall tax burden of the United States is lower than that of China.

In this way, the cost of labor in China is still cheaper than that in the United States, most of which are more expensive than the United States.

Cao Dewang's plation is that China's manufacturing industry has no cost advantage in comparison with the US cost.

As we all know, after the current financial crisis, the United States has determined the real economy and launched the "manufacturing return" plan.

This thinking is mainly based on the fact that the US is still a manufacturing power and the high position of the United States in the global manufacturing industry chain.

Before, we never worried about the cost of manufacturing in the United States than China.

It is a fact.

In the past 10 years, the cost of manufacturing in the United States has been declining, including the cost of manpower. The shale gas revolution has greatly reduced the cost of energy in the United States. As for the cost of various pactions and systems, the United States has obvious advantages.

The average cost of manufactured goods in the United States is only 5% higher than that in China, according to the Boston consulting firm's Research Report. What is more shocking is that by 2018, the cost of manufacturing in the United States will be 2-3% cheaper than that in China.

Further, if the US internet manufacturing becomes a reality, the United States will have a one-sided advantage over China in terms of the overall cost of manufacturing industry.

For China's manufacturing industry which lacks core technology, our only competitive advantage is cost advantage. If we lose the cost advantage, China's manufacturing industry is the only way to die.

In terms of the cost of manufacturing, we have no advantage over the United States. It is indeed shocking that this seemingly impossible event is a reality.

In terms of cost, it is not as good as the United States, which means that even in the low-end manufacturing sector, we have no advantage over the US.

As for the high-end, China's competitiveness in the high-end manufacturing industry is still significantly different from that in the US, Germany and other manufacturing powers.

Cao Dewang also had feelings about this.

He said: "the United States is making a return to manufacturing industry." we China, now you see, the most profitable is IT, IT actually does not make money, he is flickering is from the capitalization of the use of private money to do this thing, the second is private equity funds, investment banks, Bank of China in recent years earned full pot.

The real economy, because the cost of labor is high, everyone is going to do real estate, building a house to use labor, become our effective labor is taken away by real estate, coupled with the pformation of the financial industry, IT industry, these high demand workers in the service industry also can not find people, such a situation you say how to do? "Cao Dewang's words I do not fully agree with, but he talked about this phenomenon does exist.

When the vast majority of people leave the manufacturing industry and are keen on playing capital, playing real estate and playing games with money, the real economy will become an outcast.

When people spend their whole lives doing business, it is hard to say that when people earn more than two months' income from their manufacturing industry over the years.

China's economy will eventually depend on it.

And manufacturing industry, this is an indisputable fact.

However, to really encourage the manufacturing industry, we must create an environment that allows everyone to focus on the manufacturing industry, reduce the burden on the manufacturing industry, and reward all those who are concentrating on the manufacturing industry through the design of various incentive mechanisms.

When talking about reducing the burden of tax burden, the central economic work conference mentioned in particular that efforts should be made to reduce taxes, reduce fees and reduce the cost of essential elements.

We should reduce various paction costs, especially institutional paction costs, reduce the examination and approval links, reduce the cost of various intermediary evaluation, reduce the energy cost of enterprises, reduce the logistics cost and improve the flexibility of the labor market, and promote the enterprises' eyes to reduce costs and increase efficiency.

In fact, the pertinence is very strong.

Compared with Cao Dewang's words, it is the core issue of China's manufacturing industry.

But the key is implementation.

For example, tax reduction, I think we should admit it.

There is still too much room for tax cuts.

Li Weiguang, a tax expert, recently reported on the tax burden of Chinese enterprises.

There are two figures that are more startling: first, the survey on Chinese enterprises' tax burden is not serious. Entrepreneurs believe that the tax burden is very heavy and the proportion is very high, reaching 87%. Only 8% of them think the tax burden can be accepted, only 1% of them are considered lighter and lighter. Two, the actual tax burden rate of Chinese enterprises is close to 40%.

What does 40%, or 30% of tax burden mean for enterprises? Except for emerging industries and financial sectors, most enterprises have less than 10% profit margins. The tax burden of 30% to 40% can lead to most of the eastern coastal processing enterprises in difficulties, or even losses and bankruptcy.

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