With the intensification of global competition in the manufacturing industry, India is starting to show strong competitiveness as a role that should not be underestimated. Multiple advantages such as geographical location, sanctions policy and labor cost have made Indian manufacturing attract attention. At this critical juncture,AppleswithSamsungThe two foreign companies, who had invested heavily in the Chinese market, switched to making in India. However, despite thatSamsungThe S24 series will be made in India and exported, due to the influence of GST, customs duties and other factorsMobile phonesThere has not been a significant drop. This move is not unexpected, as earlier in the past few yearsSamsungIt has already relocated its production capacity outside of China, and even closed its last one in 2019Mobile phonesFactory. In a way,SamsungThere is a strong determination to shift production to markets other than China, and India has become an important successor to it. In the face of the frequent withdrawal of foreign companies from the Chinese market, some people are beginning to worry about whether our manufacturing industry has been completely lost. However, I don't think we need to be too pessimistic, because the transfer of production capacity is only a process, and the more important thing is how to get through the "painful period" of withdrawing from the Chinese market.
There is indeed a certain reality in the transfer of production capacity by foreign companies, especially with the change of the global situation, many enterprises choose to transfer their production bases to other regions to diversify risks. However, while the speed and scale of capacity transfers are worrying, there is no need to be overly pessimistic. We need to realize that how to get through the "painful period" of withdrawing from the Chinese market is a more important issue. Only by actively responding to the challenges at this stage and exploring new development models and market space can we maintain competitiveness in the process of transferring production capacity.
toToysIndustry, for example, China is the largest in the worldToysmanufacturing and exporting countries, more than 70% of the worldToysThe market is dependent on China. However, in the face of the dilemma brought about by the transfer of production capacity, manyToysManufacturers are choosing to relocate production lines to places like India. However, they soon faced a series of problems. Other countries lack the modern infrastructure and human resources that China has in place, and they also face the problems of diversified procurement and cumbersome regulations. Therefore, manyToysManufacturers have said that China will remain a major manufacturing hub for the next 20 years. These problems are really just short-term dilemmas in the process of relocating capacity, and these problems will be gradually solved over time and with the investment of funds.
Despite the withdrawal of foreign companies from the Chinese market, we still have the key competitiveness of the world's manufacturing industry, both in terms of technological strengthIndustrial chainIntegrity is also a quality management aspect. After years of development, China's manufacturing industry has formed a mature production system andChainInternet. This is an advantage that cannot be easily replaced by other countries. Transferring capacity is just a natural process, and we can't always take all our resources into our own hands, but it's impossible to run our manufacturing cauldron. At least for the next 10 or even 20 years, we will continue to play an important role in the world's manufacturing industry.
Manufacturing in ChinaThe exodus of foreign companies from the Chinese market is indeed worrying, but we need to take a long-term view. Transferring capacity is only a process, and how to get through the painful period of evacuation is the key. We need to find new opportunities and breakthroughs in transformation and upgrading, technological innovation and market expansion. Although the withdrawal of foreign companies from the Chinese market may have a certain impact on our manufacturing industry in the short term, we still have a world-class competitive advantage and core position. Only by continuously improving our own strength and competitiveness can we maintain a leading position in the global manufacturing industry.