The U.S. Manufacturing Industry Chain is Trapped and China's Manufacturing Industry Rise

Reuters published an article titled “American Companies Giving Heads to China?”, stating that China’s manufacturing competition with the United States has already broken away from the traditional track.

The article said that American manufacturers have indeed been under increasing pressure in recent years. Bob Quisper, a Wisconsin factory owner who produces socks, looked at the machine that was taken away as scrap iron and said, "If I take these machines, To sell to China, it is to give them to our most direct competitors." As the third generation descendant of Wigwam, facing the impact of China's production of inexpensive socks, his company's operations have become increasingly difficult, but the article added With the rise of wages for Chinese employees, American manufacturers are immediately facing the challenge of cheap goods from other countries.

Faced with such fierce competition, many US manufacturers do not resent China, and dozens of manufacturers have accepted interviews. They all said that their current anger is not directed against China, because they understand that Chinese factories and government initiatives are all for the sake of To promote one's own prosperity is understandable. Instead, they now point their finger at the inaction of the U.S. government and major transnational corporations, and do not know how to protect the long-term interests of domestic manufacturers.

Patrick Moy, member of the U.S. Congressional U.S. Economic and Security Assessment Commission, said: "I can't blame China. They just pursue their interests. I don't think we are aware of the present situation and are indifferent."

Luo Baihui, head of the International Mould and Hardware & Plastics Industry Suppliers Association, pointed out that the current production of various cheap commodities has gradually shifted to countries such as Bangladesh and Vietnam. China is focusing on upgrading the high-tech industrial chain. This strategy will directly allow the United States to now The high-tech industries that are most dependent on them have also begun to be affected by China. U.S. companies are still making large numbers of technology transfers to China each year. These technologies purchased by Chinese companies may further increase the pressure on the entire US industrial chain.

Professor Paul of the University of California, USA believes that the lack of attention paid by the U.S. government to the manufacturing industry over the years has only made the rise of China a great deal for the United States. However, there are still a large number of free traders in the United States who warn that any trade protectionist measures will cause huge losses for both traders and make it clear that the current US economic crisis is the cause of the U.S. government.

When President Hu Jintao visited Chicago, CEO of U.S. heavy-duty machinery manufacturer Caterpillar Inc. Obo Herman said that his company has 11 manufacturing bases and R&D centers in China, and its employees in China account for 15 percent of the entire company. The room for mutual cooperation between China and the United States is very large and it clearly states that "we need peace."

To save its own manufacturing industry, the United States cannot unilaterally set up trade barriers to restrict the import of Chinese products. Various forms of measures should be taken to provide direct support to U.S. manufacturers. The current inaction of the U.S. government makes domestic small and medium-sized manufacturers miserable, and there is no place for public discussion of this issue. This phenomenon makes them feel that they have been “deprived of civil rights”.

According to forecasts of construction machinery manufacturers, as of the end of 2010, the entire industry in the United States grew by 8%, which is expected to increase by 14.4% in 2011, by 14.5% in 2012, and by 13.4% in 2013. In Canada, the total industry in 2010 is expected to increase by 9 percentage points over the previous year. In 2011, it is expected to see a record growth, with an increase of 13.2%, a growth of 13% in 2012 and an increase of 12.3% in 2013. In other parts of the world, it is expected that the business of the entire industry will grow by a strong 14.4% in 2010, then increase by 11.4% in 2011, 12% in 2012 and 11.2% in 2013.

By investigating the survey subjects, ask how to sort the several factors that affect sales. Unsurprisingly, the most critical obstacle to growth is the stagnant real estate market. The overall economic situation, including credit supply, is still the main factor, as is the road fund. The biggest highlight is the increase in export demand.

Dennis Slater, president of the American Equipment Manufacturers Association, said, “Despite the popularity of the rebound, our industry’s business volume has dropped by 30 to 50% in the economic downturn. Although the business is gradually improving, it will take several years to restore the sales loss from 2008 to 2009.'

Slater also said, “If we do not take action on transport infrastructure legislation and export promotion policies, this promising prospect is difficult to achieve. It has been proved that infrastructure investment and export agreements can create and maintain for American workers. Employment opportunities, effective ways to achieve sustainable economic recovery and long-term increases in equipment demand."

“The government and the Congress need to really commit to formulating national policies so as to maintain the strong growth of the manufacturing industry and establish the confidence and certainty that manufacturers need for investment and employment. A strong American manufacturing industry is necessary so that our economy can With national competition, our equipment manufacturers can thrive and grow in the United States. If these things are not done well, then the US economy will remain depressed and our competitive position in the world will also be threatened."