Looking at the history of global manufacturing migration How does China's manufacturing industry go in the future?

1, the first major migration

The first major manufacturing migration took place at the beginning of the 20th century, when the United States took over the UK to undertake global manufacturing.

In the United States, which benefited from the second industrial revolution, the domestic industrial development level had surpassed that of the United Kingdom, and the more abundant labor force (100 million people in the United States: 40 million people in the UK), the wider geographical area (US 9.63 million square kilometers: the United Kingdom 24 10,000 square kilometers) These advantages have enabled the rapid development of mass production and standardized production in the United States.

2, the second big migration

The second major manufacturing migration took place in the 1950s, when Japan took over the United States to undertake global manufacturing.



Japan was the world's top ten industrial power before the Second World War. After the end of World War II, Japan was monopolized as a defeated country by the United States. At that time, many industrial facilities in Japan were destroyed in the war. Based on the consideration of the industrialization of Japan, the United States decided. Transform Japan as a “Asian factory” in the West.

With the support of the United States, Japan's manufacturing industry is growing at an average annual rate of 13.2%, twice as fast as Germany and France, and three times that of the United Kingdom and the United States.

Japan took over the global manufacturing transfer with an efficient and complete national industrial collaboration system, and in 1968 became the world's second largest economic power in gross domestic product (GDP).

3. The third major migration

The third major manufacturing migration took place in the 1970s, when Asia's four little dragons took over Japan to undertake global manufacturing.



South Korea under the leadership of Park Chung-hee's centralized government, the development of industry in the 1960s and 1970s, with the support of Japan, from light industry such as textiles and footwear to heavy industries such as steel and shipbuilding, it has developed rapidly and become the world's shipbuilding industry. country;

Taiwan in the 1960s was the front line of the United States restricting Asia during the Cold War. In the mid-1970s, Taiwan undertook a considerable portion of labor-intensive industries in the United States and Japan and gradually became a giant in the electronics industry.

Hong Kong was only a re-export port before 1950. The manufacturing industry only accounted for 5% of GDP. With the outbreak of the Korean War, the United Kingdom followed the United States to cut off the economic exchanges between Hong Kong and the mainland. Hong Kong turned to the development of manufacturing, and the textile industry was the first to bear the brunt. In 1960, Hong Kong's textile industry accounted for more than 40% of the total employment in Hong Kong. In the textile industry, plastics, watches, light bulbs and other manufacturing industries also developed rapidly. By 1970, Hong Kong's manufacturing industry accounted for 30%;

Like Hong Kong, Singapore's manufacturing industry in the 1960s was weak. Under the impetus of Lee Kuan Yew, through a series of industrial bills, the Jurong Industrial Park was established, attracting investment, and developing textiles, toys and other industries. The manufacturing share increased in 1964. To 14%. In the 1970s, Singapore, which focused on capital and technology-intensive industries, successfully attracted a number of multinational companies that manufacture computer parts and petrochemical processing through tax incentives. In the 1990s, Singapore became an important production base for integrated circuits, chips and disks in the world. It is also the third largest refining center in the world.

4, the fourth big migration

The fourth major manufacturing migration took place in the 1990s, when China took over the Asian Tigers to undertake global manufacturing.



China's industrialization process is different. The countries with a general export-oriented economy first develop light industries such as textiles and then develop heavy industries. China first developed heavy industry in the 1960s, and then the light industry in the 1970s.

Since the 1980s, China’s total industrial output has grown at a rate of 15.3% per year, while Taiwanese and Hong Kong-owned manufacturing companies have begun to enter China.

Taiwanese businessmen entered the mainland in the early 1980s. After more than a decade, Fujian and Guangdong coastal areas separated by water became the gathering place of Taiwan's traditional industries. Foxconn, which specializes in semiconductor and electronic equipment processing, established a factory in Shenzhen Longhua in 1988. With the scale and number of factories expanding, the number of workers recruited in China during the peak period exceeded 1 million. The following picture shows the distribution of Foxconn in China in 2012.



Since the 1980s, the amount of investment by Hong Kong businessmen in the mainland has been the highest in foreign investment. The Pearl River Delta is Hong Kong's place to transfer labor-intensive manufacturing.

At the beginning, it was mainly low-end manufacturing such as toys, clothing, plastics, hardware, etc. In the mid-1990s, electrical appliances and electronic spare parts also migrated. As of 2003, 95% of garment and leather manufacturing, and 90% of plastic manufacturing. 85% of the electronics manufacturing industry and more than 90% of the watch and toy manufacturing industries have moved out of Hong Kong. There were 1 million workers in Hong Kong in 1980, and only 200,000 remained in 2003.

The influx of a large number of foreign-funded manufacturing industries has greatly enhanced China's merchandise exports. In 1980, the dependence on foreign trade was only 12.6%. In 2002, it increased rapidly to 50.2%. On the one hand, it created a large number of factory assembly lines. By the end of 2002, it had been approved. There are nearly 500,000 foreign-invested enterprises, and nearly 20 million people are employed in these enterprises.

China's manufacturing industry's GDP in 2010 reached 40.1%, compared with 17.6% in 1952, with more than 200 kinds of commodity production ranking first in the world. Steel, cement, coal, home appliances, mobile phones, computers and other industries accounted for more than the world's output. 50%, becoming a veritable "world factory".

How did the country that migrated manufacturing develop later?

How China's manufacturing industry will go in the future, can refer to how the development of the country after moving out of manufacturing in the four major migrations.

1. United Kingdom

In the early 20th century, the UK was still prosperous and occupied the top position in Europe. In 1950, there were still 9 million people in the UK engaged in manufacturing, accounting for 20% of the total population. Manufacturing contributed 1/3 of GDP.

After being robbed of European manufacturing dominance in 1970, with the domestic economic recession, the UK actively promoted the “de-industrialization strategy” to transform into the service industry and the financial industry. The proportion of manufacturing to GDP has fallen rapidly. By 2010, it only accounted for less than 10% of GDP, while the manufacturing industry has reduced by more than 70%, most of which has been transformed into services.

The UK ranks among the top three in the world in the aviation, automotive and chip industries, such as Rolls-Royce and ARM chips.

2. United States

After the United States moved its low-end manufacturing industries to Japan and Germany, the manufacturing industry continued to prosper for 20 years. Until 1970, US steel production remained the world's number one.

After steel production was surpassed by Japan in 1970, the United States transformed into a service industry like the UK.

From 1980 to the present, the United States has outsourced most of its labor-intensive industries, retaining only high-end manufacturing industries such as automobiles, aerospace, and chips, while information technology and finance as a new growth point account for the proportion of GDP. The higher it is.

In terms of manufacturing added value, the United States is still the world's number one, and is in the position of automobiles, aerospace, medical equipment, chips, pharmaceuticals, engineering machinery, etc. Famous brands include Ford, Boeing, and Intel.

The added value of manufacturing refers to the value newly created by effective labor in the production process based on the original value of the product, that is, the new value attached to the original value of the product.

3. Japan

After Japan shifted manufacturing to the Asian Tigers in the 1970s, cars replaced steel as the largest industry. By 1998, automobile production had accounted for 20% of the world's total output, mainly exported to the United States, and fierce competition with American brands.

In addition to automobiles, Japan also occupies a position in the field of printers and data cameras. The famous brand Canon accounts for 30% and 27% of the global digital camera and printer market respectively.

In some invisible places, Japanese manufacturing can also do *, such as image sensors, bearings and other key accessories, other countries must rely on Japanese imports.

4. Hong Kong

Hong Kong is different from the United Kingdom, the United States, and Japan. As a city in China, Hong Kong does not need to worry about whether the local industry is too singular. After the manufacturing industry is completely removed, it will focus on the development of the financial industry, the service industry and the early tourism industry.

Manufacturing accounted for nearly a quarter of Hong Kong's GDP in the 1980s, and today it is less than 10%.

The following is the World Bank's GDP industry composition in 2014.



Note: The Internet industry belongs to the tertiary industry

to sum up

From the past countries, we can find some common points: First, move out of labor-intensive manufacturing, retain and develop technology-intensive high value-added manufacturing; Second, transform service industry, service industry accounts for a gradual increase in GDP, manufacturing Gradually reduced.

It is foreseeable that China's manufacturing industry will also move in this direction in the future.

However, the situation is more serious. On the one hand, orders for labor-intensive manufacturing industries have been taken away by artificially lower countries such as India, Vietnam, and Indonesia. On the one hand, robots and automation are developing rapidly, and countries such as Europe, America, and Japan are beginning to make manufacturing. Return to the mainland.

China’s manufacturing growth, which relied on demographic dividends, has not yet been proud of its high-end manufacturing industry. Although it is the world of military, home appliances, routers, PCs, etc., in fact, the basic materials and high-precision accessories of these products, As well as machine tools for processing these products, many are imported from abroad.

The dividends will fade, and where is the future of China's manufacturing industry, it remains to be seen.

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