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.
Let NaMo concentrate on Make in India to block China Economically. this will make China realise the Indian Might
Mission "Make in India" has so far failed to go off the Drawing Board. This article is nothing but a fictitious warning so that China cures various evils which are creeping in gradually. As of now there is nothing visible in India which can give us any confidence that India shall be a hub of mass manufacturing of low valued items. In so many sectors, we are miles behind China''s manufacturing capacity and volumes which influences the cost considerably. Let us no go Ga Ga while reading this article. Nothing very substantive.
Everything that shows Namo and India in better light is fictitious now a days.
Make some ficticious news so that people can forget Uri incident fast...
if we keep aside our petty differences and work as one india without any corruption and pay taxes properly, china will be no match for us
Rajgopal N B
The fact is that our PM needs support from citizens from every walk of life to take the nation forward. Opposition and media too has to stop pulling him all the time and be constructive in its criticism. This is the best chance for us to march ahead.
India should hit China where it hurts the most. We don''t need the substandard quality Chinese products for our manufacturing sector. All of us must consciously stop using Chinese goods
There is a huge gap between India and China.... They have a huge industrial corridor backed by state of the art infrastructure where India lags by miles..... China despite being a communist country has much better labour laws than India which is definitely more attractive for investors.... India is a democracy which China is not and hence it is much easier to implement hard decisions there compared to India..
India should increase the presure on China from all front