The advantage of industrial clusters will still protect China's manufacturing industry

Whether the increase in labor costs has really become the main cause of the decline of “Made in China”, now it may not be! In Wenzhou, rising labor costs have squeezed the profit margins of Wenzhou factories and prompted some companies to go farther and cheaper places, such as India, Vietnam, and China's less developed inland provinces. Wenzhou's share of the global lighter market fell from 80% five years ago to about 70%. However, due to the strategy of improving quality and building brands, many companies in Wenzhou are still thriving.

The statistics in the first half of the year have already shown that the performance of Chinese export companies is still better than that of most other countries. It is evident that their share in the global market continues to rise. According to World Bank data, this proportion was nearly 10% last year. However, the reason for this is very complicated, and it is not just the low exchange rate.

The factories in Wenzhou and other coastal areas in China benefit from first-class expressway facilities and easy access to the port. Industrial clusters create a dense and complete supply chain. Although the labor force growth is slower than before, it is still huge and relatively skilled. “China is irreplaceable,” said Be Zhemin, managing director of SILK ROADA SSO CIA T ES, a consulting firm specializing in the Asian market. “You can't move a big factory to another place without thorough consideration. Because the move to the labor and other factors of production resources where much less, will only drive up costs." So we can see.