Development Prospects of China's Manufacturing Industry

Relative to other industries, China's manufacturing industry is a fast-growing and internationally competitive industrial category, and also a sector with a greater possibility of benefiting from WTO accession. China's manufacturing industry to rapid development, industrial competitiveness significantly improve the basic experience of two: First, earlier and greater degree of openness to the outside world. China has been the developing country that has attracted the most foreign investment for many years, and more than 70% of foreign direct investment has been invested in the manufacturing sector. Open investment, open market, China's manufacturing industry not only did not shrink, but also through cooperation with foreign investors in the learning, in the competition to improve the industry's scale, level and competitiveness continue to expand, upgrade and enhance, many products in the world's top production and sales, industrial manufactured goods accounted for 90% of total exports. The second is the deeper and wider market-oriented reform. Reform of the traditional planned economic system, relaxation or deregulation of market access, encouragement and promotion of fair and effective competition in the market, renewed the vitality of the micro-body of the enterprise, in particular, the entry and development of the private economy, in many industries to form a variety of ownership in the competition to promote each other, * * * the same pattern of development. Purely state-owned enterprises accounted for the proportion of manufacturing output has fallen from 76% in 1980 to less than 30% at present. The "endogenous growth effect" brought about by institutional reform has been reflected to a large extent in the manufacturing sector.

China's manufacturing industry's comparative advantage is obvious (although the performance of different industries in different or even large differences), and in a large degree of dynamic transformation. This comparative advantage is not only embodied in the huge number, the supply of a steady stream of low-cost labor and other factors, but also more reflected in the continuous upgrading to the direction of the high degree of processing of large-scale processing and assembly industry advantages, as well as the development of the industry is essential to the huge size of the domestic market and the potential and so on. These comparative advantages have to a large extent formed China's unique international competitive advantages, in the international division of labor has been and will continue to strive for a more favorable position. If the development of China's manufacturing industry is mainly due to the opening up and market-oriented reforms, then accession to the WTO, in a more open and market-oriented environment, will lead to China's manufacturing industry's comparative advantages more fully and effectively play, and actively and proactively participate in the process of economic globalization to obtain greater benefits.

Of course, in the field of manufacturing, the maturity of different industries, openness and comparative advantage of the existence of large differences, accession to the WTO on the impact of these industries is uneven. In the long run, there are two main factors affecting the international competitiveness of industries: one is relying on the comparative advantages of resource endowment and factor cost, which has long-term and fundamental characteristics, and determines the long-term trend and basic pattern of industrial international division of labor, international trade and transnational investment; the other is relying on the competitive advantages of competition strategy and institutional conditions (competitive advantages), which has long-term and fundamental characteristics. The second is competitive advantages based on competitive strategies and institutional conditions, which are obviously strategic and selective. China is in a period of drastic changes in its economic system, industrialization process, supply and demand structure, etc. The factors affecting the competitiveness of China's industries, especially the dynamic comparative advantages and competitive advantages, are very complex and volatile. From the perspective of WTO accession, factors such as the trend of internationalization and globalization of industries, the degree of marketization, the degree of opening up to the outside world, the maturity of industries, the potential of domestic demand and the dynamic comparative advantage will have a more direct and obvious impact on the prospects of industrial development and competitive advantage. Therefore, from these influencing factors, we try to establish an assessment methodology for China's industrial development prospects in the context of WTO accession as a means of comprehensively evaluating the near-term and medium- to long-term impacts of WTO accession on various manufacturing sectors. The main points include: first, seeking to construct a unified assessment method of industrial development prospects in the context of the WTO that is universally applicable to industrial sectors, so that all industrial sectors can be placed on a coordinate system for horizontal comparison; second, organically combining short-term countermeasures research with long-term trend research, and broadening the research horizons in order to accurately grasp the long-term direction of development of various industries after WTO accession; third, through the Third, through the evaluation of industrial development prospects in the context of the WTO, the direction and basic thinking of government policy adjustment in the coming period will be clarified.