The report said that 15% of American companies will leave China

The report said that 15% of American companies will leave China. According to the Economic Voice's "Central Broadcasting and Economics Review" report, China has a vast market and low production costs. These factors...

According to the Economic Voice of China's "Central Broadcasting and Economics Review", China has a vast market and low production costs. These factors have attracted countless foreign businessmen to invest and set up factories in China. However, as labor costs rise and economic growth slows down due to economic transformation, some companies are choosing to leave China.

The latest "China Business Report 2012 to 2013" released by the American Chamber of Commerce in Shanghai reflects this problem. This report shows that the main performance indicators of American companies in China, such as profitability, turnover and operating profit margin, have declined for two consecutive years. So 15% of American companies are now preparing to leave China.

American companies are not the only ones who have the urge to leave China, nor did they start to appear only this year. At the end of 2011, multinational companies began to strategically withdraw from China, and the State Administration of Foreign Exchange issued a rare warning in its latest report that there is currently a risk of capital outflows.

After a little research, we can find that most of the companies leaving are manufacturing companies, and some other foreign companies are gradually transferring their design departments to China.

Of course, this brings not only crises, but also opportunities. How can domestic manufacturing and creative industries fill the gap left by the exit of these manufacturing companies? With the outflow of foreign capital, how can we further activate domestic demand? These issues test the wisdom of enterprises and management departments. But after the pain is over, China's economy will inevitably embark on a healthy development path that relies on domestic demand and emphasizes innovation. Xing Houyuan, a special commentator for Economic Voices and deputy director of the Research Institute of the Ministry of Commerce, commented on this matter.

Xing Houyuan: This report from the American Chamber of Commerce in Shanghai reminds us that many American companies are preparing to leave China, but not all American companies want to leave. There are still some American companies that are preparing to build design departments in China. Xing Houyuan pointed out that American companies that plan to leave China or have already left China are mainly concentrated in the high-end manufacturing field.

According to research and surveys, American companies that currently plan to leave China or have left China in the past year or so are mainly concentrated in some relatively high-end manufacturing industries that match the core industries of the existing manufacturing industry in the United States.

Their departure from China is partly due to the fact that China's manufacturing costs in these fields have increased compared with the past. On the other hand, the United States is currently implementing a reindustrialization strategy, which is matched by the U.S. export doubling strategy and the employment expansion strategy. When these three strategies are combined, the government has some optimization policies, which has led to a decline in manufacturing costs in the United States. In the context of the relative cost reduction in the United States and the increase in China's local manufacturing costs, the difference between the two has become relatively small.

In addition to the factors of China's manufacturing industry, especially labor costs, we must also consider that the current global manufacturing logistics costs account for a high proportion in this manufacturing field with a long industrial chain. Therefore, if we can reduce the cost of primary logistics and international transportation, there will be greater room for reduction in the overall cost.

After the financial crisis, as the world economy slowly recovers from a weak state, we are actually experiencing a reintegration of the global manufacturing industry layout. Labor-intensive industries are increasingly turning to emerging manufacturing countries with lower development levels than ours. Internationally high-end manufacturing continues to exist in developed countries, while mid-level terminal manufacturing is flowing to China.

The reintegration of the global manufacturing industry layout brings both opportunities and challenges to us. Over the past thirty years, China's manufacturing industry has developed through reform and opening up and independent innovation, and has occupied a very important position in the international manufacturing system. At the same time, I think that other countries do not have such a large-scale manufacturing base as ours. Not only does our market have a large scale, but our categories are particularly complete. In addition, the number of skilled workers in the industry is also very large.

I think we have full confidence and our political situation is stable. This is one point. The second point is that our industrial supporting capabilities are particularly strong. Because of the complete range of categories, our supporting capabilities are very strong. Third, although the wages of our workers are indeed a bit higher than those of other low-end developing countries, compared to developed countries, the cost of labor wages for the same position is still relatively low. Moreover, we Chinese are highly efficient, hard-working and ingenious, so we should be more confident.