China admits it's feeling pressure from India in Manufacturing Sector

Discussion in 'China' started by rock127, Sep 21, 2016.

  1. rock127

    rock127 Maulana Rockullah Senior Member

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    China admits it's feeling pressure from India in manufacturing sector

    [​IMG]

    NEW DELHI: The competitive pressure on China's manufacturing sector from India is perhaps much bigger than China imagined - that's a Chinese government run media outlet's exact comment.State-run media in China usually reflects what the Chinese leadership is thinking, so it appears China's really feeling the pinch.

    In an article titled 'China should reduce production costs for manufacturers as competition with India grows', Global Times today wrote that China's low-end manufacturing sector is facing hard times as some multinationals move production from there to other Asian countries, India included.

    "The increasing competition from India raises a tough question for China's manufacturing sector of how to keep its competitive edge at a time when the nation's labor cost advantage is shrinking rapidly. Now it is time for China to map out concrete measures to reduce production costs for manufacturers," Global Times' article said.

    One way it has suggested this could be done is by reforming the country's "overheated real estate market". Apparently, big plans to build new manufacturing plants in China's coastal cities have proven costly because of high real estate prices.

    "In this regard, the Chinese economy has to reduce its reliance on real estate and strive to create a favorable investment environment for manufacturers. Additionally, as some foreign-backed companies show an increasing interest in India over China, the country should promote the development of its local manufacturers and encourage them to build plants in less-developed central and western regions where labor costs are relatively lower," the article advcated.

    Still, Global Times doesn't believe it's all doom and gloom for China's manufacturing.

    "Despite India being more attractive to manufacturers than ever, it will be difficult for the country to build a complete industrial chain overnight. India may still need to expand its imports of Chinese-made components and parts to support the development of its nascent and growing manufacturing sector," the article said.
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  3. hit&run

    hit&run Elite Member Elite Member

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    'Low end' is the key word.

    We always had good low to medium end manufacturing base. We lost to Chinese quantity and organization. I come from manufacturing hub Ludhiana. I know how we killed our own small scale industry just because we were bad managers not because we didn't had the capacity, money and expertise.

    China may be feeling the pressure as we are learning (hard way) and catching up, but then China is rapidly gaining ground in Higher end products.

    I mean I am not saying picture is washed out in case of India when it comes to Higher end products that include heavy machinery and robotics but we have to at one stage be on top of our game than catching up.
     
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  4. amoy

    amoy Senior Member Senior Member

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    U guys need to FEEL the shift rather than IMAGINE while sipping your cup of tea.

    Last Fri. I encountered a few gentlemen at the lounge of Museum Nasional in Jakarta. They were arranging for an cold-chain equipment exhibition (and a seminar probably), while I had to wait an hour since the museum was closed off at noon due to Muslim Friday... They showed me their phones, Xiaomi, Oppo, both from China and big brands in Indonesia. Now are Nokia or Motorala still ringing? Yes costs up, and low-end labour intensive industries are shifting out to Cambodia or Vietnam, or BD (NOT India!!) like footwear and textile manufacturing. Meantime many other sectors are rising.

    Probably u're aware China-S.Korea relations went sour lately and even worse ->
    Samsung recalls Galaxy Note 7 after battery explosions.
    Korea’s Hanjin bankruptcy causes global shipping chaos


    Coincidentally as usual Chinese competitors would take the chance to eat away their market shares and climb up the ladder. Last time it was Japanese manufacturing that had started its decline.

    Indonesia Wants Alibaba Founder Jack Ma to Be Its Ecommerce Adviser
     
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  5. Dark Sorrow

    Dark Sorrow Respected Member Senior Member

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    I take the news with pinch of salt. Market is down and very slow. Everyone is feeling the heat. China's manufacturing is still strong. Currently only assembly is done in India by MNC and most basic and intermediate components are either imported from PRC, Taiwan, Malaysia, Japan or SK.

    We still have a very very very long way to go but at least are headed on the path.
     
    pent likes this.
  6. HariPrasad-1

    HariPrasad-1 Senior Member Senior Member

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    I listen to an interview of baba kalyani. He said that strength of india lies in manufacturing of high tech products at a low cost. He said that nobody can us.
     
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  7. Navnit Kundu

    Navnit Kundu Pika Hu Akbarrr!! Senior Member

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    I haven't gone through all the links in your comment yet, but I really appreciate how you respond to every China related thread as if you have some popup alert setup on your device to notify you whenever China is mentioned on this forum. Seems to be the case to me. What do you use Google Alerts? or some other social media tracking tool?
     
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  8. amoy

    amoy Senior Member Senior Member

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    Most of time I only post / respond to threads that I have a bit knowledge of, unlike some members who pretend to be a jack of all trades.

    There's a sub-forum Country Watch / China lest u're not aware. No, U don't need such 'sophisticated' stuffs as "Google Alert' for tracking. This forum itself is quite well structured.

    So what do u have to say on the "manufacturing sector" shift?
     
  9. Tshering22

    Tshering22 Sikkimese Saber Senior Member

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    But it will not affect Chinese in any way since they have already evolved into a tech manufacturing nation.

    We are not at all running the country properly.

    Too much democracy is the result why defence manufacturing and tech innovation has remained weak with every babu calling individual shots.

    Excess Democracy = Bureaucracy.
     
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  10. Razor

    Razor CIDs from Tamilnadu Senior Member

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    He is doing his job, sir.

    PS: I too have noticed what you have noticed.
     
  11. Navnit Kundu

    Navnit Kundu Pika Hu Akbarrr!! Senior Member

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    I have nothing to say on the manufacturing sector issue, I was hoping to learn a few tricks from the service sector industry, the 50 cent industry in particular. All the 50 cent freelancers work so diligently, day in and day out. But, alas, you refuse to reveal the tricks of your trade. Alright, I understand your predicament.
     
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  12. J20!

    J20! Senior Member Senior Member

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    So you're basically saying you're on this thread to call Amoy names and not discuss the subject of the thread?

    The Moderating on this sub-forum leaves a lot to be desired.
     
  13. A chauhan

    A chauhan "अहिंसा परमो धर्मः धर्म हिंसा तथैव च: l" Senior Member

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    It is useless if we don't invest now in Nano-Electronics, we don't have a single big manufacturer of Chips, our chips are largely imported. Future demands nano technology for all the fields.
     
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  14. amoy

    amoy Senior Member Senior Member

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    Well u try to label a fellow member "50-cent" or whatever while u have nothing to say on the subject as a matter of fact. Pathetic!

    Sir u're either self-humiliating indeed, or just unable to be productive on the topic. Then it's your predicament. Not mine, while I do know a thing or two on ”manufacturing shift“. I gave a first-hand experience in Indonesia on how Chinese manufacturing actually has advanced to some more value-added fields.

    [​IMG]

    @mods Hope u have noticed @Navnit Kundu is trying to derail the thread as well as his ad hominem to another member.
     
  15. Sakal Gharelu Ustad

    Sakal Gharelu Ustad Detests Jholawalas Moderator

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    This thread!! Hallucinations..........................................
     
  16. I_PLAY_BAD

    I_PLAY_BAD Regular Member

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    Thread is an example how bad English knowledge can deviate a topic away and cause misunderstanding between two members of different nationalities.
     
  17. nimo_cn

    nimo_cn Senior Member Senior Member

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    after all these years, our indian fellows are still living in a hallucination, I am glad that they have not changed.
     

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