subject: Us Media: American Heavy Industry Will Lose To China In The World Market [print this page] The monthly journal Atlantic in the United States recently published an article, saying that China is aiming at the profitable core areas of manufacturing industry of the United States. For a long time, Americans have been turning its fear of Chinese factory into angry discourse and accusing Chinese of robbing them the jobs. By low wages, Chinese have won the low-end manufacturing jobs provided by transnational corporations.
But in the past few years, there are changes in American anxiety. That is, the United States is no longer worried about being snatched job opportunities for labor costs, but it is worry about losing to China at the higher end of the market.
Despite by the adoption of production of light industrial products and electronic products, China has made itself the world's number one exporter, but now the largest part of China's exports are high-profit products, such as boats, locomotives, and construction equipments. China's capitalists are not only moving in this direction, but also getting help from the Government.
It should have caused concerns of policy makers in the United States. Heavy machinery and transport equipment are the cores of the United States industrial base, together with the food, chemical, electronic and metal products, it helps to form the six major manufacturing industries. In these industries, labor costs make up a relatively small part of the cost of production as a whole and the factories with advanced technology in the United States have traditionally offered this country the advantage in the competition. If they collapse, few industries can replace them.
Chinese companies may not challenge United States corporations at home, but they are in a good position in the competition in the international market. According to Reuters, Chinese leaders plan to turn the country into the world's number one exporter of construction equipment within 3 years.
As what is said in BusinessWeek, despite emerging manufacturers in China are not competitive in developed country markets, but they are challenging manufacturers located in South America, Russia, etc such as the Caterpillar, Siemens, General Electric, and other device manufacturers. It is forecasted that China's construction machinery industry will soon surpass that in Japan and Germany, thus enabling China to become the second largest exporter after the United States.
