Xu Weihong: The advantages of China s manufacturing industry are endless

Mondo Finance Updated on 2024-01-31

2023 is a milestone year for Chinese enterprises, Chinese technologies, and Chinese brands to go global in an all-round way, and it is also the first year for these upgraded Chinese manufacturing to compete with developed economies in an all-round way. This year, China's foreign investment has developed steadily, with a surplus of more than 730 billion US dollars in the first 11 monthsDomestically, China is the only major economy with inflation below the central bank's target.

Looking back on this year, whether it is in the field of chips, artificial intelligence, or in the fields of new energy vehicles, batteries, and energy storage, the technology gold content of Made in China has gradually been recognized by the world. In the second half of this year, Silicon Valley entrepreneurs in the United States chose to return to China to seek cooperation in the high-tech field with the "world's factory", which has the highest manufacturing efficiency.

Looking forward to 2024, the globalization trend in the high-tech field is irreversible, and Chinese high-tech enterprises will continue to "go global". More and more Chinese companies will set up factories in developed economies such as Europe and the United States, and more and more young Chinese faces will appear on the international business stage. For China's post-90s and even post-00s generation, this new pattern of global competition is undoubtedly a huge opportunity. Through the investigation of China's traditional foreign trade manufacturing bases such as Ningbo and Foshan, the author found that the second-generation "young owners" in the manufacturing industry around the age of 30 have not only overseas study experience and international vision, but also grassroots experience in front-line workshops. These young people are gradually, and China's manufacturing industry has a steady stream of competitive advantages and a continuous accumulation of surpluses.

After 45 years of hard work, China's economic take-off began with reform and opening up. Our continued competitive advantage in the global manufacturing industry is a key to the successful transformation and upgrading of China's economy, as well as an important guarantee for the strong RMB exchange rate and the well-being of ordinary people under the new situation of population development. One of the significance of the development of 2023 is that in this first year of fully implementing the spirit of the 20th National Congress of the Communist Party of China, the development of China's economy shows that our goal is not to "dominate the world", and our monetary authorities are not held hostage by data and **, but continue to be committed to the happiness and well-being of ordinary people. This is why China's economic domestic and foreign policies do not conform to the traditional logic of "Britain and the United States first, colonial rule, and bullying" of the British and American maritime powers, but they have been widely recognized by the countries that jointly build the "Belt and Road".

Under the long-term goal of steady and long-term development, China's economic recovery in 2023 is solid. In addition to the effective control of the inflation rate, the annual data on power generation, transportation and passenger transportation, and social retail consumption have all shown a gradual recovery and exceeded market expectations. The long-term logic of these real "first-hand data" is beyond many people's expectations, and its long-term logic stems from the continuous implementation of policies such as poverty alleviation, the joint construction of the "Belt and Road" initiative, and the establishment of high-end manufacturing since the 18th National Congress of the Communist Party of China, and the continuous improvement of capital density in modern agriculture and manufacturing, which effectively hedges the lack of growth momentum in the downward cycle of real estate.

Looking ahead to 2024, investors' expectations for the future of China's economy are further diverging. To paraphrase a saying in international investment circles: pessimists are always right, but optimists are profitable and successful. China's market size and development potential are huge, and only entrepreneurs who are optimistic about the future will keep pace with the times, be full of enthusiasm, and realize the inheritance of their career and wealth. Technically speaking, the main battlefield of China's enterprise competition has long expanded from first- and second-tier cities to counties, and the sinking market has benefited more Chinese consumersThe competition of brands and channels is more dependent on the Internet and innovative models, and entrepreneurs who are deficient are facing an increasing risk of being eliminated. It is worth noting that the "young owners" who stand out basically have a wise generation of entrepreneurs behind them, and their tenacity and benevolence in the epidemic have made the inheritance of the family business extremely precious.

The upgrading of the financial sector will also be the proper meaning of China's economy in 2024. Approaching the New Year, commercial banks such as China Agricultural Industry Construction have lowered their deposit interest rates, and for the first time they are lower than the benchmark interest rate of the People's Bank of China, which is a landmark moment in China's financial history. This marks China's upgrade from insufficient local capital, insufficient savings accumulation, and forced use of foreign capital in the early stage of reform and opening up to a new stage of sufficient local capital, abundant or even excess savings, and huge potential in the wealth management market. This cross-era change has put forward higher requirements for financial intermediaries represented by commercial banks and leading companies, and has also provided an opportunity for professional asset management business to replace the traditional model of rough attachment to land and real estate. (The author is the vice president of Yongxing).

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