According to KPMG's report, it can be seen that the drivers of the globalization of China's manufacturing industry are multiple. With the improvement of the innovation ability and production level of China's manufacturing enterprises, the growth of high-end demand in the international market, and the continuous optimization and upgrading of the international trade supply chain and logistics system, more and more manufacturing enterprises are turning their attention to the international market, especially to seize the opportunities of emerging markets and industries. In addition, China's "Belt and Road" initiative has also built a broad platform for Chinese manufacturing enterprises to "go global", strengthened trade cooperation and industrial investment with countries along the route, promoted international capacity cooperation in the manufacturing industry, expanded overseas market space, and allowed China's manufacturing products and technologies to take root in more countries and regions.
Supply chain integration: shorten the distance between supply and demand, and link industries to go overseas
After years of development, China's manufacturing industry has formed a complete category, upstream and downstream industries supporting the complete industrial system, in the Yangtze River Delta, the Pearl River Delta and Beijing-Tianjin-Hebei and other regions to form an industrial cluster, this highly concentrated industrial supporting advantages can reduce the production cost and transaction costs of enterprises, improve production efficiency and product quality, enhance the attractiveness and competitiveness of China's manufacturing industry in the global industrial chain. In recent years, China's manufacturing enterprises continue to increase investment in research and development, the government has also introduced a series of policies and measures to encourage enterprise innovation, enterprises and scientific research institutions in intelligent manufacturing, 5G communications, new energy, new materials and other fields have made a series of key technological breakthroughs, improve the technical content and added value of products, enhance the core competitiveness of China's manufacturing industry in the global market. In addition, the deep integration of information technology such as the Internet, big data, artificial intelligence and the manufacturing industry has promoted the digital and intelligent transformation of the manufacturing industry, realized the automation, intelligent control and management of the production process, improved production efficiency and product quality, reduced the cost and resource consumption, and also gave birth to new business models and formats, such as industrial Internet platforms, intelligent manufacturing system solution providers, etc., providing new impetus and opportunities for the global development of China's manufacturing industry.
Figure: The driving factors for the globalization of China's manufacturing industry
Breaking through trade barriers: Exploring new ways to drive sustained export growth
In the face of the rise of global trade protectionism, Chinese manufacturing enterprises have established overseas manufacturing and supply chain systems to avoid high anti-subsidy and anti-dumping measures, and win a larger market share and competitive advantage. According to KPMG, in order to cope with these challenges, Chinese manufacturing enterprises have become an important part of their internationalization strategy by investing abroad, moving production and sales links abroad, assembling components for export and even establishing vertically integrated production capacity overseas. On the other hand, the domestic market is fiercely competitive, and some manufacturing enterprises actively implement the internationalization strategy in order to find new growth points and profit margins, and deeply understand the local market demand by establishing production bases, sales networks and R&D centers overseas, so as to improve the corresponding market speed and expand market share, and realize the scale expansion and global layout of enterprises. In order to enhance the competitiveness and innovation ability of enterprises, some enterprises have obtained foreign advanced technology, brands, talents and management experience and other resources through overseas mergers and acquisitions, strategic cooperation, etc., accelerated the technological upgrading and internationalization process of enterprises, and improved the status and influence of enterprises in the global industrial chain.
International resource acquisition: access to overseas markets, brands and technology and other resources
With the acceleration of the globalization process and the development of the economy of various countries, the global market demand for all kinds of manufacturing products continues to grow, especially the infrastructure construction in developing countries, the acceleration of industrialization and the industrial upgrading of developed countries, providing a broad market space for China's manufacturing industry, China's construction machinery, communication equipment, power equipment and other products have strong competitiveness in the international market to meet the needs of the global market. Through technological innovation, product upgrading and brand building, Chinese manufacturing enterprises have continuously improved product quality and brand image, met the increasingly diversified and high-end needs of global consumers, and promoted the sales and brand influence of Chinese manufacturing products in the global market.
Related:
How Can China's Manufacturing Industry Better Cope with the Challenges of Going Global (1)
How Can China's Manufacturing Industry Better Cope with the Challenges of Going Global (2)
How Can China's Manufacturing Industry Better Cope with the Challenges of Going Global (3)
