Why do many multinational companies say that they can t leave China s manufacturing?

Nowadays, Made in China has spread to all corners of the world, and the topic of whether life can be separated from Made in China has been frequently talked about on foreign social networks.

Sarah Bongioreni, an economic journalist from Louisiana, tried it herself in 2005. At first, when Sara counted Christmas gifts, she found that 25 of the 39 Christmas gifts were "made in China", and she also found that many daily items such as lamps, socks, shoes, etc. at home were also from China. Sara suddenly had a crazy idea:

What would it be like if there was no "Made in China" in life?

Of course, Sara didn't just think about it, she also put it into action, and together with her family, she tried to live without buying Made in China for a year, and a year later she recorded this experience, and the best-selling book "A Year Away from Made in China" was born. <

In this book, during the year of Sarah's "no Chinese goods", Sarah's 4-year-old son used to be happy for a long time when he got a pair of new sneakers made in China for $10, and in order to achieve "no Chinese goods", Sara had to buy him **68 dollars of "Italian" shoes; Any broken item in the house will give Sara a lot of headaches, should she insist on buying expensive items that are not made in China or surrender to made in China?

In the end, Sara persevered in completing the year-long experience, and by 2006, Sarah's family had finally "reconciled" with Made in China, Sara wrote in her bookChinese-made products are already everywhere, and no matter how hard you try, you can't avoid them, because it's completely impossible. ”After a year of experimentation, Sara came to the conclusion: Americans are completely unable to get rid of Made in China, so the inconvenience and cost of life that they have to endure is so great that I don't want to try it in the future!

Because our manufacturing in China is very perfect, and our cost is very low.

Because Made in China is getting stronger and stronger now, isn't it, and technology can also be.

Because many multinational companies have taken a fancy to China's cheap labor, and they need this cheap labor to make something for them.

It shows that Made in China is really great, the cost of Made in China is low, and the efficiency is high.

First of all, it is because made in China** is cheaper, and the quality is more reliable.

Because Made in China really rules the world, so China is good, Made in China is good.

They need this cheap labor to make something for them, first of all, because it is cheaper to make in China.

Because Made in China has its own great advantages, the value and significance of existence.

Because things made in China are good and cheap, don't you think?

Closer communication between China and other countries has prompted foreign companies to set up subsidiaries or processing plants in China. The vast majority of large closed cities can see different kinds of multinational corporations, multinational corporations can effectively alleviate the local employment problem, and multinational corporations can also make the domestic economy grow steadily. At present, Spanish multinationals have been reborn in China, and foreign companies often do marketing in China, and foreign companies have become very filial piety in China because of their marketing and promotion gains.

Foreign companies tend to operate and promote better and better in China, because foreign companies have advanced technology, China's labor network is abundant, and foreign brands are very easy to get everyone's attention and love.

Every country is looking for a large number of high-quality sales markets, and many countries are eyeing the Chinese sales market. It can also show that the consumption level of Chinese is relatively strong, and the stronger the consumption level of China, the more colorful the sales market will be produced. It is difficult for foreign companies to get an abundant sales market in the country, but China is a huge global market demand, and most foreign companies operating branches in China will always get more profit and total sales.

China not only has a huge sales market, but also has a lot of abundant labor in China. In contrast to foreign work norms, the vast majority of Chinese workers will choose to work overtime actively. This situation will be highly valued by the vast majority of multinational companies, after all, labor is related to the production capacity and marketing methods of a multinational company.

In the long run, multinational companies have built many sub-processing plants in China, and they are also operating very well in China, and they are hardly lacking in sales markets and labor.

Although domestic brands can also create products with beautiful prices and excellent product quality, some Chinese still prefer foreign brand products. We often see Chinese goods from other countries on foreign networks, and this kind of goods will also be affirmed and supported by the vast majority of audiences. In the long run, the equipment produced by Chinese multinational companies will also be sold out, which determines the quality of a brand's operation in China, and also prompts more and more international brands to get business opportunities in China again.

In general, foreign companies tend to operate very well in China, on the one hand: China has a lot of sales market and labor, and on the other hand: Chinese prefer foreign brands.

Recently, the famous American economist and Nobel Prize winner Abhijit Banerjee and others wrote an article pointing out that although Trump wants to decouple from China and encourage American companies to move their production lines back to the United States, this situation is unrealistic.

Because China's society is undergoing some changes every day, we are now in the society of the empty branch science and technology development is very fast, a lot of things made in China have been lost to the world, made in China covers the economy, science and technology, culture and society and other fields, so it can have a very important impact on the economy of other countries.

It may be that the current time is special, so it must be bad to leave at this time

First, China's manufacturing industry will continue to decline. Second, China's virtual economy is not having a good time. In fact, China's manufacturing industry is declining, mainly low-end manufacturing, shoddy manufacturing must decline, if China's shoddy processing and manufacturing industry does not continue to decline, China has no chance.

It's a real era of business change, and if you look at it as an opportunity, it's an opportunity, and if you look at it as a disaster, it's a real disaster. Crisis, crisis, opportunity must be in danger, and great enterprises must be born in danger. Only by calming down and observing, can you change yourself.

In 5 to 10 years, China's economic opportunities are so strong that there may not be a second country like China in the world. I've always been an optimist, but optimism is never the same as blind optimism, you need to be grounded. But one thing is for sure, if the economic situation is good, you may not be good; If the economic situation is not good, you may not be bad.

There are bad practices for a bad economy, and there are good practices for a good economy, but they look at it from different angles.

China needs to improve innovation and creativity, and vigorously develop mid-end, mid-to-high-end, and high-end manufacturing to cope with the shift of low-end manufacturing.

In fact, it is an inevitable trend for low-end manufacturing to leave China one after another, so that China will no longer be the world's factory. In order to promote the continued and further development of the economy, China needs to strive to transform to intelligent manufacturing, and make it made in China and created in China.

Social development will inevitably eliminate backward industries, and industrial upgrading is an inevitable trend.

The road ahead has been paved, and it is not a matter of crossing the river by touching the stones, sooner or later! As long as the transformation is successful, it will be a fresh start, and if it is not, it will ,......

Don't worry, the market economy will balance itself. Due to high wages, part (if not most) of the manufacturing sector left the United States, Japan, Western Europe. But the economies of these countries have not collapsed, they have only slowed down.

Other new developed countries, such as South Korea, Taiwan, Hong Kong and Singapore, have also relied on low-end manufacturing in the past. But these low-end manufacturing industries have also left completely, but their economies are still healthy, albeit slowing down. They may not have developed the most advanced technology (such as building machines to produce chips), but they have done well in some areas (such as chip manufacturing) and are integrated into the global economy.

Medium traps. Low-end industries can't compete with others, and the cost is high, and the tax land, environment, and labor are high. The high-end can't be done, and the high can't be low.

Since the outbreak of the financial crisis, China has taken a series of measures to stabilize growth, especially investment, which can be said to be round after round, but economic growth has not been satisfactory. Especially since the second half of last year, the economy has entered a downward channel. The real economy, especially the manufacturing industry, has seen serious problems, which not only cannot provide support for stable growth, but has become a drag on stable economic growth.

China's economy, which has stood on the manufacturing industry as a pillar, has reached the point where the manufacturing industry has become a drag, which is related to the economic strategy mistakes in the past decade or so, and the implementation of the virtual economy dominated by the real estate industry has led to a serious imbalance in China's economy. Although China's economy has become the world's second largest economy after more than 30 years of development, the foundation of China's economy is very weak, China is an export-oriented economy, sacrificing the environment, resources and squeezing the value of labor to promote economic growth, but as long as the cost advantage disappears, the export-oriented economy has no vitality. The investment-driven mode represented by real estate and urban construction can only play a temporary and short-term role in China's economic growth, but cannot put the economy on the track of sustainable development.

If China wants to achieve sustainable development, it can only rely on the real economy and manufacturing, but in the more than ten years of bubble development of the real estate industry, the upgrading of the real economy with the manufacturing industry as the main body has been delayed, and China's economy has been seriously "hollowed out". The large exodus of foreign companies from China is related to the sharp decline in the profits and returns that manufacturing can provide, as well as to China's economic transformation. On the one hand, most of the production capacity of Microsoft, Nokia, Panasonic and other internationally renowned enterprises that have withdrawn from China is low-end manufacturing, which is also the next industry that China needs to adjust; On the other hand, as China has also made great strides in these areas, local companies are already well positioned to compete with these internationally renowned players.

In this case, their profitability and market competitiveness have greatly decreased. Seeing this situation, these foreign companies made early strategic adjustments, reflecting their flexible business strategies, and from this perspective, the negative consequences of foreign companies withdrawing from China should not be exaggerated. Although the withdrawal of foreign companies engaged in low-end manufacturing from China will have little impact in the long run, the impact on China's economy cannot be ignored in the immediate future, especially in 2015.

China's economy is in a difficult state, and if a large number of foreign companies withdraw again, it will have a new impact on China's economy. Therefore, how to improve the investment environment and further attach importance to the development of the real economy, especially the manufacturing industry, needs to be highly valued.

The reason why foreign companies are dependent on China. On the one hand, the Chinese market is further expanding, which has led to many companies targeting the Chinese market. On the other hand, because the consumption level of Chinese residents is improving, and the goods formulated by foreign enterprises are reasonable, which will naturally get the attention of domestic consumers.

According to the relevant report, 80% of foreign companies have no intention of moving out of the Chinese market, which also means that many foreign companies are optimistic about the Chinese market. In addition, many companies are seeking sustainable development, and foreign companies may gain access to a very broad consumer market after entering China.

Taking the luxury market in 2019 as an example, there are more than 4 million people with assets of more than 10 million in China. However, consumers with more than 10 million macro assets will buy the right luxury goods. According to the relevant ** report, more than 4 million people have created a total of 62% of the luxury market share.

With the steady development of all walks of life in China, the Chinese market is further expanding, and major foreign brands will also look at the Chinese market.

As all walks of life enter a stage of stable development, this makes workers in many industries have relatively stable jobs. As their years of service and productivity progressively improve, every staff member has the opportunity to receive a promotion and a salary increase. When most of the staff Zaoqing gradually completes the work content, the wages they receive will also increase, and the consumption level will increase, and the probability of buying foreign products will be increased.

In general, the world** is globalized, and many foreign companies have shown very strong marketing efforts after entering China. However, it is more important for foreign companies to abide by the principles and respect our culture. Otherwise, foreign companies have a very strong influence, and it will be difficult for them to occupy the Chinese market.