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China's 'world factory' status will not be replaced

Compared with 10 years ago, China's labor cost advantage has significantly weakened. Part of the manufacturing industry is shifting to Southeast Asia.

Three advantages to support China as world factory

○ China is an extending market.

○ The quality of Chinese labor force has obviously improved in recent years.

○ China has a reliable supply chain. China has built an industry support system with a relative advantage in the world.

China giving new meaning to 'world factory'

How to start transformation and upgrading? 

World factory faces various problems

Wage Growth vs Economic Growth

Shifting labor, rising incomes spur demandShifting labor, rising incomes spur demand

Pollution

Multiple places in N China suffer dusty weather 
Multiple places in N China suffer dusty weather

Complicated situation

Income redistribution, rural labor transfer key to 'fast development' Income redistribution, rural labor transfer key to 'fast development'