Analysis And Policy Suggestions Of Effects Of The New Trend Of International Industrial Transfer On Chinese Manufacturing Industry

After carrying on preceding industrial transfer for nearly 30 years,China's manufacturing industry has preliminary realized industrialization relying on advantages of rich labor,abundant natural resources and favorable investment environment.At the same time,China has overtaken the United States to become the biggest manufacturing producer and is expected to become the next "World Manufacturing Center" after Britain,the U.S.and Japan,all the achievements have boosted China's economic growth steadily and international competitiveness greatly.However,the global industrial transfer has displayed a new trend after the 2008 financial crisis,middle-end and high-end manufacturing start going back to developed countries,while low-end manufacturing begins to locate in Southeast Asia,South Asia and other regions to seek low costs.Because of the disappearing manufacturing cost advantages,a large number of manufacturing enterprises moves out of China and the traditional industry goes into recession.What's more,emerging industries are still in the process of development,and the new trend of international industrial transfer overlaps with the period of Chinese economic transition.All those factors are meant to cause significant impacts on Chinese economy.This paper attempts to explore the background of the new trend of the international industrial transfer under the premise of analyzing domestic manufacturing situation,strengths and weaknesses,using the International Division Theory,the Wildgeese-shape Development Theory,the Marginal Industry Transfer Theory,the Product Life Cycle Theory and the Global Value Chain Theory.After the financial crisis,developed countries have proposed "re-industrialization" strategy to transfer the economic focus from the fictitious economy to the real economy and promote the return of the high-end manufacturing.Some developing and low-income countries have become more attractive than China concerning favorable labor cost,natural resources and trade environment,so most developed countries are taking those countries as substitutes of China,which has dampened Chinese low-end manufacturing as a result.Furthermore,China has steadily lost manufacturing competitiveness due to rising wages and other factor costs,and all those have stimulated the acceleration of industrial transfer.Through the analysis of the developed countries' "re-industrialization"strategy,other developing and low-income countries' cost and trade advantages,and the rise of domestic manufacturing costs,this paper holds that the new trend of international industrial transfer has a certain degree of impact on our manufacturing industry.I will discuss the influence of new trend of international industry transfer on China's manufacturing industry from the aspects of export competitiveness,foreign direct investment(FDI),trade friction,cross-border mergers and acquisitions and industry hollowing-out.On the basis of research on above aspects,this paper will put forward suggestions about deepening international production capacity cooperation,upgrading the technology level,shifting the strategic direction,promoting cross-border mergers and acquisitions,optimizing trade environment,cultivating talents,etc to deal with challenges domestic manufacturing industry confronts.