Competitiveness on the decline
By Joy Wang |
December 13, 2011, Tuesday
|
Print Edition
Print Edition
CHINA'S industrial competitiveness showed signs of decline this year, with higher-tech industries suffering more than those at the lower end, the Chinese Academy of Social Sciences said yesterday.
Whether China can rebound in 2012 depends on economic conditions in developed countries and the pressure on China's exchange rate, said Zhang Qizi, a researcher at the academy's Institute of Industrial Economics.
Industrial competitiveness in the academy's report involves non-financial sectors dedicated to global trade.
The global slump will put great pressure on exports and as protectionism against Chinese products is on the rise, global trade is unlikely to grow much, he said. "Although China's overall industrial competitiveness remained strong, it showed signs of decline. Some industries hit a bottleneck when they tried to become more value-added, and some others were hurt by the world economic turmoil."
The report said China's overall industrial competitiveness was still ranked top in the world, ahead of Germany, the United States and Japan. But an unsettling feature was that most of China's competitive industries were lower-end sectors such as textiles and clothing.
Higher-tech sectors such as communications, biosciences, automobiles and new energy reported weaker competitiveness this year because of insufficient input in research and development.
For example, the US held patents for 30 percent of the world's information communication technology, Japan 23 percent, and China just 0.5 percent, the report said. In biosciences, the US had 13 percent of patents, Japan 11 percent and China a mere 0.6 percent.
Looking ahead, Zhang said China is able to retain the position as the world's most competitive country in industries in 2012 - despite the slowdown in exports. "Two main factors - economic performance in developed countries and the intensity of pressure over the yuan's value - will affect the growth of China's competitiveness next year," Zhang said.
Zhang's colleague Jin Bei said China's manufacturing sector encountered some serious challenges. "Higher standards on energy conservation and environmental protection, rising production costs in labor and raw materials, as well as faltering demand amid the global economic turmoil will make Chinese manufacturing industries vulnerable and less competitive," Jin said.
Meanwhile, the Currency Exchange Rate Oversight Reform Act of 2011, a bill passed by the US Senate that aims to push for a faster appreciation of the yuan, will also affect China's exports, Zhang added.
Zhang said the goal of the bill was to impose punitive tariffs on Chinese products that have a competitive edge.
Whether China can rebound in 2012 depends on economic conditions in developed countries and the pressure on China's exchange rate, said Zhang Qizi, a researcher at the academy's Institute of Industrial Economics.
Industrial competitiveness in the academy's report involves non-financial sectors dedicated to global trade.
The global slump will put great pressure on exports and as protectionism against Chinese products is on the rise, global trade is unlikely to grow much, he said. "Although China's overall industrial competitiveness remained strong, it showed signs of decline. Some industries hit a bottleneck when they tried to become more value-added, and some others were hurt by the world economic turmoil."
The report said China's overall industrial competitiveness was still ranked top in the world, ahead of Germany, the United States and Japan. But an unsettling feature was that most of China's competitive industries were lower-end sectors such as textiles and clothing.
Higher-tech sectors such as communications, biosciences, automobiles and new energy reported weaker competitiveness this year because of insufficient input in research and development.
For example, the US held patents for 30 percent of the world's information communication technology, Japan 23 percent, and China just 0.5 percent, the report said. In biosciences, the US had 13 percent of patents, Japan 11 percent and China a mere 0.6 percent.
Looking ahead, Zhang said China is able to retain the position as the world's most competitive country in industries in 2012 - despite the slowdown in exports. "Two main factors - economic performance in developed countries and the intensity of pressure over the yuan's value - will affect the growth of China's competitiveness next year," Zhang said.
Zhang's colleague Jin Bei said China's manufacturing sector encountered some serious challenges. "Higher standards on energy conservation and environmental protection, rising production costs in labor and raw materials, as well as faltering demand amid the global economic turmoil will make Chinese manufacturing industries vulnerable and less competitive," Jin said.
Meanwhile, the Currency Exchange Rate Oversight Reform Act of 2011, a bill passed by the US Senate that aims to push for a faster appreciation of the yuan, will also affect China's exports, Zhang added.
Zhang said the goal of the bill was to impose punitive tariffs on Chinese products that have a competitive edge.
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