Meeting at the MOFCOM on Development of the Manufacturing Industry

2016-07-08 | Beijing

Ms. Jinlin Pei, an AC Member attended a meeting with the Department of Policy Research of the MOFCOM, representing the European manufacturing businesses operating in China. The meeting was organized by the MOFCOM with an aim to find out China’s competitiveness in manufacturing, especially in cost, the status quo and challenges of the investment in manufacturing and recommendations to the government. Besides the DDG Sun of the Department of Policy Research, officials from Foreign Investment Administration of the MOFCOM and experts from some research institute also attended the meeting. The experts analyzed the labor cost, efficiency of the manufacturing industry, compared China with both developed and other developing countries and elaborated on the advantages (a huge market to serve, enormous talents and accessibility to a whole supply chain, etc.) and disadvantages (higher cost in energy, industrial land use, development gap in different regions, etc.).

Jinlin briefed that the advanced European manufacturing businesses in China are not moving to East Asian countries like the low-end manufacturers. She talked about the challenges such as the increasing labor cost in China, heavy tax and cyber security related concerns. While recognizing the progress China has made in the IPR protection and the rule of law, she said that China still has a long way to go in enhancing the vocational training and the SOE reform, etc. DDG Sun thanked all the participants for their valuable input and said that the information and recommendations provided at the meeting will be fully into consideration in their report.