British authorities report： China has become a global supply chain center.

　　A report released by the British market research organization Marquette recently pointed out that China, while continuing to be a purchasing destination, "is no longer the target country for low-cost outsourcing business", but "has become the center of global supply chain". This has changed the long-standing impression of China as a "world factory".

　　China, which controls a larger part of the global supply chain, is transforming the global trade model.

　　"As the world’s second economy after the United States, China imported a large number of raw materials and parts from aluminum to microchips, and processed them into finished products such as Apple mobile phones and george foreman baking ovens for sale to the world." The American Wall Street Journal reported that over the years, this kind of import and export has promoted the prosperity and development of global trade, making China one of the most important export destinations. Today, China, which controls a larger part of the global supply chain, is transforming the global trade pattern.

　　The report named "Global Purchasing Survey Trends" by Marquette Company is an annual survey for global purchasing activities and purchasing supervisors, aiming at evaluating the global risk environment and purchasing trends, which is highly authoritative, convincing and practical in the industry. The report points out that China’s role in the global supply chain continues to grow, and it has surpassed the "traditional role" of low-cost suppliers.

　　The Independent commented that when people talk about China for a long time, it always seems that representative pictures such as "the factory of the world" come to mind. In fact, people can draw a conclusion from the report of Market Company that such a connection is "no longer correct and appropriate".

　　For many reasons such as cost, for many years, large global enterprises have been increasing the share of manufacturing business in China, making use of China’s competitive labor price advantage to earn greater commercial value and seek more value-added space. However, with the continuous rise of China’s comprehensive national strength and the continuous improvement of people’s living standards, China’s labor wage level continues to rise, which objectively reduces China’s original attraction to cost-sensitive enterprises, and China’s traditional advantage of low labor cost is becoming weaker and weaker.

　　According to the data released by the International Labour Organization, the average wage of China residents has doubled compared with 2006. Qi Wenli, head of global theme research at Standard Chartered Bank, regards the rising wage level of manufacturing labor in China as a "subversive trend".

　　Roberts, a professor in the Department of International Trade at Westminster Business School in Britain, "fully recognized" the report of Marquette Company. In an interview with this reporter, he said that the outside world should re-evaluate China, correct the old concept of China formed before, and re-evaluate and examine China’s role orientation and important role in the global supply chain and industrial chain. According to Roberts, China, once a "world factory", is moving forward in the global supply chain and industrial chain.

　　The transformation and upgrading of traditional industries in China provide new market opportunities for domestic and foreign investors.

　　According to the report of Market Company, in fact, the supporting evidence of China as a low-cost procurement destination is decreasing. Paul robinson, an economist at Marquette, pointed out that the proportion of respondents who thought China was a low-cost purchasing destination was below 50% for the first time in 2016, which was significantly lower than 70% in 2012.

　　The Financial Times reported that intermediate products and services from different places enter the finished product production through the global supply chain, which accounts for nearly 80% of global trade, including about $12 trillion in intermediate products and services trade. "It has begun to change the world". A study previously published by Standard Chartered Bank said that in the next 10 years, the change in the nature of global supply chain will reshape the global trade pattern. As the largest source of global supply chain, China will divest a large part of low-cost manufacturing.

　　In Qi Wenli’s view, ASEAN and India are likely to benefit from this low-cost manufacturing migration, and Bangladesh and Africa will also get a share. China has regained the space for infrastructure construction, and at the same time, it has become a supplier of equipment and equipment for ASEAN and other economies. Qi Wenli believes that this transformation will obviously enhance the position of emerging market economies such as China in the global supply chain of manufacturing and service industries and consolidate their export strength. In fact, the share of emerging market economies such as China in global exports is already higher than that of developed economies.

　　China has top-class infrastructure, skilled labor force and factories that thrive on technological innovation. All along, they have been deeply embedded in the huge supply chain of "Asian factory", which can smoothly assemble parts and raw materials from all over the world and make rapid adjustments according to the unpredictable tastes of global consumers. Blanchard, a senior researcher at the Peterson Institute for International Economics in the United States, made no secret that the global supply chain is mainly concentrated in China. If an American factory withdraws from China, it may lead to the collapse of the whole supply chain, which will be disastrous for American enterprises.

　　Now, China is implementing an innovation-driven development strategy to promote mass entrepreneurship and innovation. The development of the new economy has brought new hopes, opportunities and vitality, created a large number of jobs, revitalized some excess capacity and idle assets, transformed and upgraded traditional industries, and provided new market opportunities for domestic and foreign investors. In a report released in 2016, the Boston Consulting Group analyzed that China, as the manufacturing center of the world, the new technology of Industry 4.0, represented by cloud computing, big data and artificial intelligence, will become the key to improve the efficiency of manufacturing industry.

　　(Newspaper, London, February 9 th, our correspondent in the UK, Huang Peizhao)