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Actually feel the pressure of Chinese foreign trade in the United States

TECHNOLOGY CENTER

TECHNOLOGY CENTER

Renowned Skin Packaging Specialist * Skin Packaging Aesthetics Up-lifter

Actually feel the pressure of Chinese foreign trade in the United States

Recently, foreign media made a test. In the United States, can we only use Chinese products for one day? The experiment is to see if the Chinese products have "taken over" the United States. Of course, this is only a gimmick. The test results also prove that Chinese manufacturing is far less exaggerated. But this is an interesting attempt. Along its line of thought, I also combed the use of Chinese Made in the United States in everyday life. It may help you to understand the status and direction of China's foreign trade exports.

Look at the food first. Take Wegmans supermarket, which is often visited by the public here. Fruits, vegetables and staple foods are basically produced in the United States. The trade protection of agricultural products has always been strict and it is difficult for Chinese products to enter. Raw meat and seafood are also basically produced in the United States, Canada, and Europe. Earlier, Shuanghui acquired Smithfield, the largest pork producer in the United States. Therefore, many pork, ham, and sausages in the supermarket come from the company's brand, but the origin is still local.

This is also true of beef, mutton, and chicken. There are also a few from Australia and Europe, such as Germany, Italy, meat, ham, and sausages. Also Nordic cheese, pasta. Americans love cheese, a huge area in the supermarket is a variety of cheese, which is basically the world of Europe and the United States. On the one hand, there are reasons for food safety and trade protection. The other important reason is the consumption habits. The gap between Europeans and Americans in eating and in East Asia is still very large.

clothing. In the past, we often jokingly went to Europe and the United States and accidentally bought clothes from Made In China. This situation is decreasing. Many clothing, shoes, and home textile products come from Vietnam, Thailand, Indonesia, and Pakistan. It is a lot of toys, schoolbags, articles, or Chinese.

Household appliances. TVs, washing machines, refrigerators, and air conditioners, with the exception of local brands in the United States, are mainly imported from Japan and South Korea. Such as Samsung, Sony, Whirlpool, LG, GM, etc., China's major products can also be found here, such as TCL, Haier, but not the mainstream. Once at Wal-Mart, I saw a family pushing Haier's refrigerator, which made me excited for a long time.

car. The United States is the country on wheels. Most Americans have no legs if they have no cars. Therefore, the car is the most important market. It is a pity that the Chinese cars here are equivalent to blanks. The roads that run on the roads are basically half American cars, half Japanese cars, and the top ten brands in the US and Japan. However, Korean cars are also growing, and some people like Hyundai Sonata and Kia are opening.

electronic product. Computers, Apple, Dell, Thinkpad, Hewlett-Packard, Asus, and Samsung are scattered. Mobile phones, Apple, and Samsung occupy the absolute superiority. Some people have used Huawei, but most of them are still used by Chinese. Of course, the vast majority of accessories for mobile phones and computers are produced in China. Both Apple and Samsung are considered to be Made In China.

Service industry. Cinemas have barely seen movies outside the United States, and occasionally India or Europe. This hasn't seen a domestic film in half a year. Some domestic films that are very hot may be displayed in a few institutions. However, it is rare for all theaters like Hollywood blockbusters to roll out. Previously, Wanda purchased a US theater and production company, causing a sensation. Some media speculated that in the United States later, it is possible to sit in a Chinese movie theater and watch Chinese movies. However, this has not yet happened.

Tertiary Industry. I once found WeChat on a student cell phone in Puerto Rico, but her Samsung mobile phone was not used. It was a teacher who taught the language installed WeChat because many of her students were Chinese. Today I also discovered that the promotion of a Chinese game in the Huffington Post App, "My harem era", made me very surprised because the title was Chinese. I don’t know if it’s accurate or not. The Internet industry should be an industry that has high hopes and hopes to make breakthroughs.

On the whole, Chinese products are mostly low-value consumer products. These products are extremely cheap in the United States. People feel distressed when they are cheap. But even in this market, more and more developing countries are now joining the competition.

Something high-end, electronic products, home appliances, most of them are branded Made In China's foreign brands. There is no private brand that has the advantage of market share like Japan and South Korea.

High-value industrial products are almost empty. Automobiles, civil aviation passenger planes, chips, CNC machine tools, precision instruments, medical equipment, engines, arms, and fighter jets have yet to open the door. Obviously, this is the most profitable, but also includes movies, music, artistic products, as well as the Internet, finance, law, education and so on.

The status of making in the United States from China can also see the current domestic economic restructuring pressure. It is not worthwhile to make low-end products and it is not worthwhile to sell them to the United States. It also pollutes the domestic environment. More and more poor brothers are rushing in business; mid-end products do not form a global brand, and there is not yet a Chinese company. It can stand out and sweep the US market like the Japanese companies of that year; high-end products and services are faced with the dilemma of lack of innovation. With the exception of a few products such as Huawei and High Speed ​​Rail, it is difficult to obtain competitive products. It would be even harder to have American students go to China to study, visit the doctors, install software and networks in China, and watch Chinese movies. The pressure of economic growth can be imagined.

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When her daughter entered the period of development, she grew tall and she quickly became worn out with her basketball outfit. She went this weekend to help her buy some new ones. He came to Dick’s Sporting Goods, a famous American sporting goods monopoly chain. Nike, Adidas, North Face, Under Armor and many other brands were available. We quickly selected five tops and two trousers.

When I returned home and saw my daughter turning the trademark, I jokingly said, "Although they are all brand names, they can't be guaranteed to be made in China." Do not want her daughter to answer, "Mom I remember you said before that the share of the Chinese made in the American market is decreasing. Really, only one of the seven pieces of Nike pants is made in China."

I turned to see it, and sure enough.

This Nike sports shirt from Vietnam:
 
This Nike windbreaker is made in Indonesia:
 
 
 
This Nike pullover from Egypt:
 
 
These two pieces of Adidas clothes are produced in Bangladesh and Thailand respectively:
 
 
 
There is also a Nike basketball shorts produced in Thailand. Only this warm-up Nike sweatpants comes from China:
 
 
At a time when most of the sports brand-name clothing and supplies in the US market were affixed with "Made in China" trademarks, today it has reached such a small extent that these brands have already completed the "from China" brand. "Great retreat" succeeded in setting up a camp in other countries.

This phenomenon is in good agreement with the results of the "Global Economic Migration of Manufacturing Industry" report released this year by the Boston Consulting Group (BCG). The report pointed out that if we compare the top 25 economies in terms of total global exports, and use the US manufacturing cost as the benchmark index, China's manufacturing cost index is as high as 96. In other words, if the same product is manufactured in the United States at a cost of US$1, it will need US$0.96 in China, which shows that the gap between the two has been greatly reduced. According to the report, there are three reasons why China's manufacturing costs have risen sharply: First, wages have risen sharply; hourly wages in China have risen by 187% from 2004 to the present; second, the exchange rate, which has risen by 35% in the past ten years; Third, the cost of energy, China's industrial electricity cost increased from 7 U.S. dollars per kilowatt-hour in 2004 to 11 U.S. dollars in 2015, and the cost of natural gas rose from 5.8 U.S. dollars in 2004 to 13.7 U.S. dollars. The reason for high energy costs is that taxes are too high. Too many, for example, more than 40% of the price of gasoline per liter is the tax paid to the government.

In stark contrast to the soaring production costs in China, the U.S. adjusted manufacturing wages have risen by less than 30% since 2004. Although hourly wages are still higher than China, the extra wage costs are higher than Chinese workers. The lower natural gas prices in the United States, low-cost cotton raw materials, and local tax incentives and subsidies offset the fact that some industries have seen a reversal of the industry chain. Not long ago, the New York Times Chinese website reported that China's spinning industry costs It is already 30% higher than the United States, causing mainland mills to set up factories in the United States instead.

More manufacturers have moved to Bangladesh, Vietnam, Indonesia, Thailand, etc., where production costs are lower. Nike and Adidas are clearly among them. According to public reports, Panasonic, Daikin, Sharp, and TDK are all pushing forward manufacturing. The base moved back to Japan, and world-renowned companies such as Foxconn, Clarion, and Samsung also accelerated their withdrawal from China. Obviously, "Made in China" is undergoing an unprecedented crisis. The wave of manufacturing failures caused by this has been inevitable. There are companies that cannot keep up with the times in technology and cause excessive capital chain breakage in the early stage, and they cannot tolerate the sharp rise in labor costs. Enterprises that have closed down and shut down have more companies that have tried to transform and upgrade but have not succeeded.

The Chinese manufacturing industry has developed for so many years, but most of them still remain at the lowest end of the industrial chain. We don’t say much about profits, and our product technology cannot keep up with the development of the market. The Chinese government has apparently recognized the crisis. In 2015, the “China Manufacturing 2025” issued by the State Council is a policy adjustment based on the current global manufacturing development pattern and changes in China’s economic development environment. It aims to advocate innovation-driven innovation. Achieving the transformation of China's manufacturing to China, the transformation of China's speed to China's quality, and the transformation of Chinese products into Chinese brands. However, as China's economy has entered a new normal, the challenges faced by the development of the manufacturing industry have become increasingly severe. Obviously, if there is only one way out to resolve the current crisis, it cannot be a mere “sweatshop” for others or a simple imitation of a cottage to fully promote “China.” "Construction" of the connotation brand and innovation is the only way out.