China'S Cost Triggers A New Round Of Industrial Pfer

The spatial pfer of industry is the inevitable result of the adjustment of regional development pattern. The relative position between regions and the change of competitive advantage and comparative advantage must be reflected in the spatial distribution pattern of industry and trigger a new round of industrial pfer.

Industrial pfer is also an inevitable trend in the adjustment of regional development pattern after the financial crisis.

From historical experience, every big crisis will bring a reshuffle of regional development pattern.

After the international financial crisis, with the upgrading of relative status of some countries and regions, the cost of labor and other factors of production is changing. This change will inevitably affect the production cost of enterprises.

The allocation of production to lower cost location has become an inevitable choice for enterprises to avoid risks.

Industrial pfer is an inevitable phenomenon after the economic development to a certain stage, and is directly related to the change of external environment.

In order to reduce costs, reduce risks and expand the market, enterprises often migrate the cost sensitive production links such as land, resources, labor and pportation to areas with relatively low cost or greater market potential. From a macro perspective, enterprises are conducive to the adjustment and upgrading of industrial structure and the optimization of production layout.

From China

In recent years, due to the rapid rise of land, energy, labor and ecological environment costs, the development of labor-intensive industries and resource intensive industries has been restricted, and the pace of industrial pfer to the central and western regions has accelerated.

The change of labor cost is the most basic driving force for this round of industrial pfer.

Since labor force wages remained unchanged for many years, there has been widespread "wage surge" in various regions since 2010, which greatly reduced the living space of labor-intensive industries in the eastern coastal areas.

According to relevant data, the average per capita wage in Eastern 2009 was nearly 30% higher than that in the central and western regions, which directly promoted the pfer of a large number of labor-intensive enterprises to the central and western regions.

At the same time, some raw materials industries such as iron and steel, petrochemical and other raw materials in the central and western parts of China have been increasing dependence on the international market due to their raw materials.

In addition to reducing costs,

Policy guidance is also an important factor.

The push of the government's "visible hand" has promoted the process of industrial pfer.

For example, in 2008, Guangdong Province promulgated the decision on promoting industrial pfer and labor pfer, which promoted the partial loss of comparative advantage in the Pearl River Delta region to Guangdong's East-West wings and northern mountainous areas.

The Ministry of industry and Commerce has issued the "guiding opinions on promoting the pfer of textile industry", accelerating the pfer of textile and garment industry.

Various preferential policies launched by industrial undertaking areas also have great attraction for enterprises to pfer their production capacity.

Although the central and western regions have comparative advantages in the cost of labor, land and other production factors, they are also constrained by the supporting capabilities, logistics system and soft environment. Once the low factor cost advantage is offset by the cost of logistics and paction costs, it will lose the comparative advantage of undertaking industrial pfer.

Industry matching capability is an important bottleneck.

For an enterprise, the procurement radius of raw materials and parts is very important, which often directly affects the production cost of enterprises. If the supporting conditions are not good, or the supporting products are backward in technology, the quality can not meet the requirements. If enterprises want to purchase long distance, they will substantially increase the cost.

Shortage of skilled workers is an important constraint.

The wage level in the Midwest is often difficult to attract high-quality technicians and engineers, but also affects product quality and enterprises' competitiveness.

Logistics speed and logistics cost have an important impact on industrial pfer.

Under the condition of intensified market competition, the life cycle of products is getting shorter and shorter, so we need to shorten the whole process of organization production, product market and market feedback.

Logistics cost also directly affects the decision of enterprises to choose the place of pfer.

Soft environment determines paction costs.

Local governments often attract foreign enterprises through preferential policies, but the information is opaque, inefficient and paction costs are high, so preferential policies will be greatly reduced.

With the adjustment of the pattern of regional economic development, the scale of China's industrial pfer will be bigger and bigger.

Under the guidance of Scientific Outlook on Development, we must combine industrial pfer with adjustment and optimization of industrial structure, accelerate the pformation of economic development mode, combine with regional comparative advantages and promote regional coordinated development, and combine with resources and environment carrying capacity and promote sustainable development.