Recently, some foreign media conducted a test. In the United States, can we spend only one day with Chinese products. The test is to see if Chinese products have "taken over" the United States. Of course, this is just a gimmick. The test results also prove that the Made in China is far less exaggerated. But this is an interesting attempt. Along the way, I also sorted out the use of Chinese manufacturing in the United States in daily life, which may help you understand the status and direction of China's foreign trade exports.
Look at the food first. Take Wegmans supermarket, which is often visited by citizens, as an example. Fruits, vegetables and staple foods are basically made in the United States. Agricultural product trade protection has always been strict, and it will be more difficult for Chinese products to be imported. Fresh meat and seafood are 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 came from this company's brand, but the origin was still local.
This is also true for beef, mutton, and chicken. There are also a few from Australia and Europe, such as Germany, Italy, meat, ham, and sausage. There is also cheese and pasta from northern Europe. Americans love cheese. A huge area of the supermarket is a variety of cheeses. This is basically the world of European and American goods. There are reasons for food safety and trade protection in this regard. Another important reason is consumer habits. The gap between Europeans and Americans in eating is still very large.
clothing. In the past, we often ridiculed ourselves to Europe and the United States, and accidentally bought clothes made in China. This situation is decreasing. Many clothes, shoes, and home textiles come from Vietnam, Thailand, Indonesia, Pakistan and other countries. However, many toys, schoolbags and articles are still Chinese.
Household appliances. TVs, washing machines, refrigerators, and air conditioners are mainly imported from Japan and South Korea, except for American brands. Such as Samsung, Sony, Whirlpool, LG, GM, etc., China's main products can also be found here, such as TCL, Haier, etc., but not yet mainstream. Once at Wal-Mart, seeing a family pushing Haier's refrigerator excited me for a long time.
car. The United States is a country on wheels. Most Americans, without a car, are equivalent to having no legs. Therefore, cars are the most important market. Unfortunately, Chinese cars are equivalent to blank spaces here. Basically half of the American cars and half of the Japanese cars run on the road. The top ten brands are all American and Japanese. However, there are more Korean cars, and some people are driving Hyundai Sonata and Kia.
electronic product. Computers, such as Apple, Dell, Lenovo (Thinkpad), Hewlett-Packard, Asus, Samsung, etc., are scattered. Mobile phones, Apple and Samsung have absolute advantages. I have seen some people use Huawei, but most of them are still used by Chinese people. Of course, most of the accessories for mobile phones and computers are made in China. Both Apple and Samsung are considered Made In China.
Service industry. Cinemas have hardly ever seen movies outside the United States, and occasionally Indian or European ones. I haven't seen domestic films in the past six months. Some popular domestic films may be screened in a few theaters, but all theater lines like Hollywood blockbusters are very rare. Earlier, Wanda's purchase of US theaters and production companies caused a sensation. Some media speculated that in the United States, it may be possible to sit in Chinese theaters and watch Chinese movies in the future, but it is not yet.
Tertiary Industry. I once found WeChat on a Puerto Rico classmate's cell phone, but her Samsung cell phone came with it and was never used. It is a language teacher who installed WeChat because many of her students are Chinese. Today I also discovered that a promotion of a Chinese game appeared on the Huffington Post APP, "My Harem Times", which surprised me, because the title was in Chinese. I don't know if it was recommended to me exactly. The Internet industry should be an industry with high hopes, hoping for a breakthrough.
Generally speaking, most of Chinese products are still low-value consumer products. These products are really extremely cheap in the United States, which is so distressing. But even in this market, more and more developing countries are now participating in the competition.
Slightly more high-end, electronics, home appliances, most of them are foreign brands under the brand Made In China. There are no private brands with market advantages like Japan and South Korea.
High-value industrial products are almost blank. Automobiles, civil airliners, chips, CNC machine tools, precision instruments, medical equipment, engines, arms, fighters ... these have not yet knocked on the door. Obviously, this is the most profitable, including movies, music, art products, as well as the Internet, finance, law, education, and so on.
From the status of Made in China in the United States, we can also see the pressure of the current domestic economic transformation. Making low-end products does not make money, and it is not worth selling to the United States. It also pollutes the domestic environment, and more and more poor brothers are rushing for business. Mid-end products have not formed a global brand and there is no Chinese company. It can highlight the siege and sweep the US market like Japanese companies in the past; high-end products and services face the dilemma of insufficient innovation. Except for a few products such as Huawei and high-speed rail, it is difficult to have a fist product. It is even more difficult for American students to travel to China to study, see doctors, install Chinese software and networks, and watch Chinese movies. One can imagine the pressure of economic growth.
Her daughter is in the developmental stage and she grows very fast. In addition, her basketball wear wears quickly, so she can buy some new ones for her this weekend. When we came to Dick's Sporting Goods, a well-known American sportswear specialty chain store, Nike, Adidas, North Face, Under Armor and other brands have everything. We quickly selected five tops and two pants.
When I came home and saw my daughter flipping the trademark, I joked and said, "Although they are all famous brands, I can't keep them all made in China." I don't want my daughter to answer, "Mom, I remember you said before that the share of Made in China in the US market is declining, really, only one of the seven pieces of Nike pants is made in China."
I flipped around and saw it.
This Nike sports top is from Vietnam:
This Nike windbreaker is made in Indonesia:
This Nike pullover is from Egypt:
These two Adidas pants were produced in Bangladesh and Thailand:
There is also a pair of Nike basketball shorts from Thailand. Only this warm-up Nike sweatpants are from China:
Once upon a time, almost all of these sports brand-name clothing and supplies in U.S. malls were affixed with the "Made in China" trademark, but now they have fallen to such a small number, indicating that these brands have completed the " The "Great Retreat" successfully set up camps in other countries.
This phenomenon is very much in line with the results of the report "The Great Migration of the Global Manufacturing Industry" published by the Boston Consulting Group (BCG) this year. The report pointed out that if the top 25 economies in the world's total exports are compared and the US manufacturing cost is used as the benchmark index 100, China's manufacturing cost index is as high as 96. In other words, if the cost of the same product is US $ 1 in the United States, it will cost US $ 0.96 in China, indicating that the gap between the two products has narrowed significantly. The report believes that there are three reasons for the significant increase in China ’s manufacturing costs. First, salaries have increased significantly. China ’s hourly wages have increased by 187% from 2004 to the present. Second, exchange rates. The exchange rate of the RMB to the US dollar has increased by 35% in the past ten years. The third is the cost of energy. The cost of industrial electricity in China rose from $ 7 per kilowatt-hour in 2004 to $ 11 in 2015. The cost of natural gas rose from $ 5.8 per unit in 2004 to $ 13.7. The reason for the high energy cost is that taxes and fees are too high. For example, more than 40% of the price of gasoline per liter is taxes and fees paid to the government.
In sharp contrast to the soaring production costs in China, the productivity-adjusted manufacturing wages in the United States have increased by less than 30% from 2004 to the present. Although hourly wages are still higher than those in China, they are more expensive than Chinese workers. Offset by lower natural gas prices in the United States, low-cost cotton raw materials, and local tax incentives and subsidies, some industries have already experienced industrial chain reversals. Not long ago, the New York Times Chinese website reported that the cost of China's spinning industry Already 30% higher than the United States, causing mainland spinning mills to set up factories in the United States instead.
And more manufacturers have moved to Bangladesh, Vietnam, Indonesia, Thailand and other places with lower production costs. Nike and Adidas are clearly among them. According to public reports, Panasonic, Daikin, Sharp, and TDK are all advancing 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 experiencing an unprecedented crisis, and the wave of manufacturing closures caused by it is unavoidable. There are not only companies that cannot keep up with the times and excessive investment in the early stage, which caused the capital chain to break, but also cannot stand the sharp rise in labor costs Companies that went out of business and closed down were even more companies that tried to transform and upgrade but were unsuccessful.
China's manufacturing industry has developed for so many years, but most of them still stay at the lowest end of the industrial chain. Not to mention the meager profits, the product technology cannot keep up with the development of the market. The Chinese government has clearly recognized the crisis. The "Made in China 2025" issued by the State Council in 2015 is a policy adjustment made in accordance with the current global manufacturing development pattern and changes in China's economic development environment. To realize the transformation from Chinese manufacturing to Chinese creation, Chinese speed to Chinese quality, and Chinese products to Chinese brands. However, as the Chinese economy enters a new normal, the challenges facing the development of the manufacturing industry are becoming increasingly severe. Obviously, there is only one way out to resolve the current crisis. It is not only to be a "sweatshop" or simply imitate a cottage to comprehensively improve "China The connotation brand and innovation of “manufacturing” are the only way out.