Foreign capital does not withdraw in large scale. The foundation of "world factory" is deep.
foreign capital does not withdraw in large scale. The foundation of "world factory" is deep.
China Construction machinery information
Guide: Recently, with Obama's proposal to create 1million manufacturing jobs for the United States in four years in the election platform, some enterprises using existing platforms and directories claim to withdraw their production lines from China to the United States. China's official agency recently wrote that China has indeed experienced a certain degree of capital outflows recently, but it does not mean that foreign capital has been evacuated on a large scale. ChinaRecently, with Obama's proposal to create 1million manufacturing jobs for the United States in four years in his election platform, some enterprises claimed to withdraw their production lines from China to the United States. China's official agency recently wrote that China has indeed experienced a certain degree of capital outflows recently, but it does not mean that foreign capital has been evacuated on a large scale. Chinese industry insiders made it clear that the complete industrial supporting advantages will make China a "world factory" with a deep foundation
Zhao Yuchao, the balance of payments Department of the State Administration of foreign exchange of China, wrote in China Foreign Exchange on the 12th that since the end of 2011, the news of foreign capital divestment has continued to spread: first, Ford Motor Company said it would relocate 12000 jobs from China and Mexico to the United States; Then Starbucks announced that it would withdraw its ceramic cup manufacturing from China to the Midwest of the United States; This year, American consumer goods giants Jiadun, caterpillar and other enterprises withdrew some of their products from a number of contract factories in China; Foxconn announced that it would decentralize its production operations to other Asian countries, and said it would invest $10billion to set up factories in Indonesia
Zhao Yuchao believes that the current situation change is closely related to the financial operation of domestic entities and the adjustment of local and foreign currency management methods, which does not mean that foreign capital is withdrawing in large numbers. From the perspective of real economy such as trade and investment, China's import and export surplus increased by 26% year-on-year from January to July this year, and the actual utilization of foreign capital only decreased by 4%, which will not lead to a major change in cross-border capital flows. This shows that factors in the market environment have played a more important role
foreign investment in China gives the greatest protection to the machine. The capital outflow under the income of foreign investment is still relatively stable, and the withdrawal of foreign capital does not affect the overall situation. First, the proportion of the above-mentioned capital outflows is still very low. According to the balance of payments data, in the first quarter of 2012, the withdrawal of foreign direct investment and securities investment in China was US $5.8 billion and US $700million respectively, accounting for 2.1% and 0.2% of the outflow of capital and financial projects respectively; In the same period, the inflow of foreign direct investment and securities investment in China remained much higher than the scale of divestment. Second, the funds from the above-mentioned foreign capital withdrawal channels did not show sustained high growth
in this regard, many people in the Chinese manufacturing industry believe that the term "supply chain" has gathered the real competitiveness accumulated by Chinese manufacturing for more than 30 years. Very few countries can have different standards according to different reasons, which can reach the degree of integration of low-cost, world-class infrastructure and huge scale like China. China not only has complete industrial supporting measures, but also has a huge market, which is unmatched by many countries. For example, a few years ago, some enterprises that moved to other countries, the fastest-growing industries in the central and Southern markets of the United States, have been transferred back to China
a former senior executive of Apple said that taking Asia as the strategic center "mainly because of two points". First, Asian factories "can rapidly expand or reduce production in proportion", and second, "Asian supply chains are better than American supply chains". The result is that "we in the United States cannot win in these areas"
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