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Business / Economy

Manufacturing needs to adapt to changes

By LYU CHANG (chinadaily.com.cn) Updated: 2014-12-30 14:06

Although China's manufacturing price advantage is eroding due to rising wages and energy cost, the Asian country is still the world's largest trading nation, said a report released by social sciences academic press on Monday.

The annual study with a focus on the current development of Chinese manufacturers showed that made-in-China goods have played a decisive role in the international competition although the labor intensive and low-end products still account for a large portion of export.

Zhang Qizi, researcher at the institute of industrial economics in Chinese Academy of Social Sciences, said that the soaring wages and higher energy cost have weakened the prowess of the Chinese manufacturing, as a result the nation will have to adapt to the change of population structure and quick changing demand.

"Currently immature financial services, soaring logistic cost and wages as well as weak competitiveness in the creative sector are some key factors restricting the development of the country's manufacturing industry," said Zhang, the key author of the report.

He said China has entered into a new stage of a structural adjustment, the sustainable ability of innovation in customized production and complex manufacturing will become core competitiveness of the industry.

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