Liu Zhibiao & Chen Liu: Sino-US Trade Friction Forcing China's Manufacturing Industry to Develop Steadily and Continuously

Release time:2019-05-09Author: Liu Zhibiao & Chen Liu

As a manufacturing giant in China, various difficulties reflected by Jiangsu enterprises are typical and representative, which mainly include the following aspects: the environment of competitive market is poor, the factor cost is generally higher than that of foreign counterparts, the coordination cost for policy implementation is high.From the result of our survey, compared with Southeast Asia and other regions, the industrial supply chain formed in the eastern coastal areas in a long period of time still has significant advantages. Because the leading enterprises have a powerful voice in their subdivided industries, they are less affected by adverse factors internally and externally. The manufacturing enterprises in eastern China have entered into the key stage of intelligent development. The intelligent transformation reduces the labor cost and improves the production efficiency, resulting in promoting the comprehensive economic benefits.We should pay attention to the following points in supporting the manufacturing industry. Firstly, greater tax reduction measures should be actually implemented. Secondly, we should make efforts to refine relevant policies. The third is to improve the enforceability of policies and enhance the expectation of policy stability. Fourthly, it’s necessary to support manufacturing companies to expand overseas. The fifth is to reduce the industrial policies of subsidy and strengthen the supply of public goods.