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China's industrial transformation: “demographic dividend” is gradually receding

December 17, 2018 11:05 Source: China Securities Journal

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In Jixian County, Hanzhong City, Shaanxi Province, there are 15,285 households with 40,798 people living in poverty. Among them, 56.4% are poor due to lack of funds, lack of technology, and insufficient development capacity. Most of the employment has no way, no capital for entrepreneurship, and the income is very high. difficult. In response to this situation, Pixian County has guided and supported 216 cooperatives and leading agricultural enterprises in the county to expand the scale by establishing branch factories or processing workshops, and established “poverty alleviation workshops (factories)” to establish order production and joint ventures with poor households. The interests of the base, the escrow, the escrow, and the dividends into the enterprise will drive the people to increase their incomes and get rid of poverty. The picture shows that on March 31, workers worked in a garment factory production line in Jixian County. Mao Jianjun

Data map: Factory production line. Mao Jianjun

Looking at China's industrial transformation from Samsung's “retreating” and “entering”:

“Population Bonus” is fading “Engineer Bonus” rises

□Reporter Ren Mingjie
The news that the Samsung mobile phone Tianjin plant will be shut down on December 31 has attracted widespread attention. At the same time, Samsung plans to invest 2.4 billion US dollars in Tianjin to build a world-class power battery production line and vehicle MLCC factory and other projects. From Samsung's “retreat” and “enter”, we can see the transformation and upgrading of China's industry.

In recent years, as the “demographic dividend” has subsided and labor costs have risen, many labor-intensive foreign-invested companies have shifted their industries to areas with low labor costs such as Vietnam. At the same time, the “engineer bonus” accumulated in the expansion of Chinese universities is being released, and foreign investment has further increased investment in China's emerging industries.

In the process of industrial transformation and upgrading in China, the pain will be inevitable. Experts suggest that we should further accelerate supply-side reforms, increase tax reductions and reduce fees, and hedge against the impact of rising labor costs on manufacturing, especially high-end manufacturing. At the same time, it is necessary to vigorously support small and micro enterprises by cracking the financing difficulties and other measures to stabilize the "basic disk" of employment.