China's high-end manufacturing is facing double squeeze

In recent years, under the encouragement of policies, China's manufacturing industry has made considerable progress in technology upgrades, patent standards, and branding. Manufacturing companies represented by Huawei are changing the embarrassing situation in which Chinese companies can only participate in the low-end international division of labor. On the whole, Chinese counterparts want to surpass the United States and are unrealistic for at least 10 years. Even Huawei is still best at producing Western-based transnational companies to build on its well-established technology platform. Although this situation is changing, it is unlikely to achieve a fundamental breakthrough in the short term. In the more sophisticated industries, such as laser cutting machines, heavy-duty hydraulic presses, nuclear pressure vessels and other special steels and advanced medical equipment, the potential for Chinese enterprises to achieve significant technological leap is still very limited.

In the past 10 years, the foreign-funded enterprises have continuously increased their control over the Chinese manufacturing industry. In the industries that China has opened up, the top five companies in each industry are almost controlled by foreign capital; among the 28 major industries in China, foreign capital has majority control over assets in 23 industries. The industrial progress China has achieved is far less than that of foreign investment.

On the other hand, the development path of “reindustrialization”, low-carbon economy, next-generation new energy, and smart earth originated in the United States is intended to lock in the high-end manufacturing field and seek to create new competitive advantages. This will not only pose greater pressure on China's high-end equipment industry in the future, but will also cause market space pressure on products that have already formed advantages. Because financial markets have strong industrial support capabilities and powerful global supply chain management capabilities, the United States may take the lead in setting off yet another industrial revolution after the new economic revolution and re-cutting the global industrial landscape, thus reshaping the Chinese economy and Technical advantages.

Under the environment of the global industrial division of labor system, China, as the largest manufacturing country, must clearly estimate the huge gap between China and the United States in the high-end manufacturing sector and enhance the competitiveness of China's high-end manufacturing industry as a long-term mission.