Analysis On The Impact Of Developed Countries’ Re-industrialization Strategy On The International Competitiveness Of China’s Manufacturing

In2007the international community witnessed the outbreak of severe financialcrisis, US, EU and other developed countries have proposed "re-industrialization"strategy, they have refocused on the real economy, the revitalization of themanufacturing sector has been raised to an important national strategic level. Theessence of the strategy can be understood in the following way, it is a shifting processof economic center of developed countries, it is an adjustment process of industrialstructure based on advanced manufacturing, and it is a continuous process ofinnovation. Developed countries’ re-industrialization strategy is imposing an impacton the world economy and international trade order, as a big manufacturing countrywith high degree of dependence on foreign trade and foreign investment, China alsofaces the opportunities and challenges brought about by the strategy in the post-crisisera. Analysis on the impact of developed countries’ re-industrialization strategy onthe international competitiveness of China’s manufacturing has practical significanceof reference and inspiration for the future development of China’s manufacturingindustry.This article is based on this background, the theoretical study of internationalcompetitiveness of manufacturing industry has been combed and analyzed.Background to the implementation of policy measures and implementation of thestrategy elaborated path has been stated, the analysis of the industrial data shows thatthe strategy has a positive impact on the aspects of capital flows, employment andexport performance of developed countries. The comparative analysis of thedevelopment of China’s manufacturing industry before and after the implementationof the strategy has been conducted from the perspectives of overall trend, export performance, utilization of foreign direct investment and cost advantages condition.The mechanism of the impact of the strategy on the international competitiveness ofChina’s manufacturing sector has been summed up in this process, that is, the strategymainly imposes impact on the international competitiveness of China’s manufacturingsector through four paths including advanced manufacturing, trade environment,foreign direct investment and exchange rate.The empirical test of the path has been conducted from three angles includingforeign direct investment, exchange rates, labor costs through panel data. Theempirical results show that the impact of the developed countries’ re-industrializationstrategy on the international competitiveness of China’s manufacturing sector throughforeign direct investment and exchange rate has been in line with the results of thequalitative analysis, however, in terms of labor costs, although the labor costs ofChina’s manufacturing industry is relatively on the rise, the short-term cost advantagehas not been significantly weakened. By selecting US as the target market andbuilding on the import and export trade data calculation system, the impact ofdeveloped countries’ re-industrialization strategy on the international competitivenessof China’s specific manufacturing sectors has been analyzed from three aspectsincluding market penetration, revealed comparative advantage index and comparablenet export index. The results show that both China’s low-tech manufactured goodsas the textile, clothing and footwear products, and high-tech manufactured goods aselectronic and electrical products, the content of negative influence imposed bydeveloped countries’ re-industrialization strategy is limited, indicating that China’smanufacturing industry based on the comparative advantage of labor costs will remainin the short term. But this does not mean that the impact of the developed countries’re-industrialization strategy on China’s manufacturing industry can be neglected, inthe long run, the core objective of the developed countries is the advancedmanufacturing, and more important impact of the strategy on the internationalcompetitiveness of China’s manufacturing sector will be reflected in the challenges of advanced manufacturing. Practical suggestions have been made on China’smanufacturing industry from the aspect of development strategy; in addition, specificrecommendations have been made especially for China’s advanced manufacturing.