Abstract In the past, a large amount of excess capacity was pressed against us. First, we must dare to cut off the past process. It is not possible to add only at all, sometimes to subtract. The road to enterprises under the market transformation must ensure that their products can stand firm in the market and need a system...
In the past, a large amount of excess capacity was pressed against us. First, we must dare to cut off the past process. It is not possible to add only at all, sometimes to subtract. The road to business under the market revolution
To ensure that our products can stand firm in the market, we need a system, a set of corporate systems, and a set of governance structures to serve the enterprise, and our market environment has changed a lot compared to before.
First, the change in cost structure. Before we were poor, poor was bad, but poor has an advantage. Poor means low cost, low labor costs and low land costs. So at the beginning, companies can enjoy the advantages of low cost. Nowadays, although the economy is highly prosperous, the costs of labor, land, taxation, and social security are increasing, and the pressure on enterprises is very large. In this era of rapid growth in costs, companies can not provide favorable products for the society, which is a great test for the management and governance of enterprises.
Second, the change of content drives the change of the framework. Even if you do the same product, if the company's framework is wrong, it will fall short. While dealing with historical factors, it leaves room for future development. I think that Chinese local entrepreneurs have a very important feature, that is, they are extremely good at cooperating with all parties and are good at coordination. To have a long-term goal, have a belief, step by step, and finally succeed. Entrepreneurs in reform do not only have to judge the market, but also understand the society, understand the human condition, understand politics, and understand policies. There is still a lot of patience, and you can't ask everything to be done in one step.
Good steel should be used on the blade
China's manufacturing industry has a characteristic, because China is a vast country, and the competition between local and local is very fierce. It is attracting investment and providing various preferential conditions. This has a positive effect on the formation of China's high-volume manufacturing capacity and the promotion of China's ability to connect with the international community from the coast to the interior. But at the same time, it also has a side effect. Each place can only coordinate its own local resources, and cannot allocate resources from the whole industry and the whole market perspective, which largely leads to overcapacity.
For example, if a company establishes a base in all parts of the country, the company's front line will be lengthened, the elite troops will be diluted, and the power to continue to develop new technologies will be weakened. So when the situation looks good, you can see deep-seated problems, take the initiative to give up, and bring the funds back for research and development. This is a very correct choice.
It is easy to say that the reduction is actually a farewell to the development track of the past. Because the situation has changed, you will not say goodbye, and the new situation will drown you. Proactive farewell must be accompanied by pain and contradiction, but it is proved to be an experience worth learning from afterwards.
What is the most important thing in China's manufacturing industry in the transformation and upgrading?
In the past, a large amount of excess capacity was pressed against us. First, we must dare to cut off the past process. It is not possible to add only at all, sometimes to subtract. This is the first suggestion.
The second recommendation: SMEs must also innovate. Now big companies have two ways to go, one is to do research and development by themselves, and the second is to focus on the research and development of small businesses. So now it is called continuous business, you can sell it after you succeed, and then continue to start a business. Which way SMEs go, you can choose from this process. I don't think that our SMEs can immediately become research companies and technology companies, and it is not realistic.
The third recommendation: In the current situation, we have to think about how to combine our manufacturing capabilities with new global research and development. Some very interesting ideas from foreign countries can be combined with our SMEs. Some Chinese investors are very powerful, investing in some early research and development in the United States, investing in the upstream, patents just taken down, and then developing products that can be mass-produced for a while. Then we will return to the Pearl River Delta region, where our manufacturing capacity is very strong, and form a template for the international collection of the new era.
The fourth suggestion: Do not necessarily do high-end things, you can do good quality. Chinese products are not without markets, and they must turn low-cost competition strategies into quality. Tongrentang has a successful experience is real material. We should not underestimate Chinese consumers. If your product quality is good, consumers are still willing to pay for it.
Economists cannot predict the future
Peter Till's discussion of the future in the book From 0 to 1 is always uncertain.
This picture is a picture from Peter Tiel in "From 0 to 1". I saw it touched later. Economists have predicted that there will always be uncertainty in the future. Then how can you judge that it is getting worse? Just like the development of the Pearl River Delta region in the past 30 years is better every day, of course, people who may analyze it inside like to look at negative information. Generally, positive and positive things are difficult to spread widely. Not too good things are passed on by people. Maybe everyone has a preference for negative news. Of course, I don't deny that we have many problems. We now have a tendency that everyone likes to talk about a problem that it can't solve, and finally it can't be solved. I don't think the Chinese entrepreneur's worldview is like this.
I don't think that the United States is "unclear optimism." When I went to the United States this time, I saw that Americans did not always talk about the financial crisis or make money-making projects, but they all talked about it. What he is doing, I think this thing determines the future. How will China's trend develop in the future? It depends on these people in China, how to think about the future, how to do the present. Economists can't predict the future, I never predict the future.
Human thought determines the future of the economy
The future depends on the current actions, and different actions lead to different futures. The economy is not a celestial activity, it can predict the direction of the orbit; the economy is a human activity, and the human mind determines the future of the economy. Therefore, I believe that if we completely lose confidence in the future, then our economy will have a hard time to break through and there is always a hope.
I also recently learned about a project about blind people. The reason why people can see things, in the final analysis, is that the brain receives the signal stimulation, so many blind people are not able to accept the message, but the information can not be transmitted after the eye is damaged, and the information can be transmitted through other channels, or can be imaged. With this idea in mind, they have been immersed in research for ten years, and now the product has been made, and the patent has been applied. Put a small receiver under the human tongue, connect the external camera, you can make a shadow in the brain, you can see the outside blur. Some blind schools are already using this product, which has made many blind people see programs and performances for the first time. Now the company is preparing to mass-produce this product, and the place of origin is selected in the Pearl River Delta. The Pearl River Delta has the largest number of the best skilled workers, and those who can innovate at the level of craftsmanship and components.
Therefore, our manufacturing industry is not impossible, not so pessimistic. In fact, many of our business community friends do not need "too clear optimism", even if it is "clear optimism", it can promote some things. This together promotes the progress of society, and the future picture will be different.
(The author of this article: Professor, Ph.D., Dean of the National Development Research Institute of Peking University.)
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