The intelligent factories of the future will be similar to today's public cloud services.
It will definitely enable China's manufacturing industry to reach a new level.
Manufacturing industries that relocated to Southeast Asia due to labor costs are likely to return.
"Thank you for the invitation. I am undoubtedly optimistic about the cooperation between Huawei and Kechuang Biotechnology, and I think this is the most important event in China's economy this year."
The employee upstairs is absolutely right; the Industrial Internet can help bring manufacturing back to China, and I completely agree with that.
The return of manufacturing means that China's economic engine will reach a new level.
I will explain in detail why the Industrial Internet can help bring manufacturing back to China.
Firstly, manufacturing will flow to Southeast Asia. As an industry insider, I can tell you with certainty that manufacturing is not just flowing back to Southeast Asia.
It's just that we're in Asiatic state, so we feel that manufacturing is returning to Southeast Asia.
In reality, capital in each country is guiding its manufacturing sector to relocate to areas surrounding its own borders.
Japanese and Korean capital is deployed in Southeast Asia, while American capital is more focused on neighboring Mexico, Argentina, and Brazil, and European capital is shifting to Eastern Europe.
The restructuring of supply chains is ongoing worldwide, and China is also guiding its manufacturing sector to relocate inland.
Why is capital driving the relocation of manufacturing? It's clearly because China's labor costs have increased, making it less attractive than before.
In addition, the cost of ocean shipping has increased significantly in recent years.
America has placed its supply chain in South America, and now uses automated trucks for transportation, making the cost much lower than sea freight.
Capital is profit-driven, and manufacturing in China cannot bring them such high returns.
There are also some less obvious reasons: America hopes to rebuild its global supply chain system.
But why is it that while governments in developed countries have been guiding the relocation of supply chains, China's manufacturing industry seems to have not suffered much damage?
That's because China's manufacturing industry has advantages not only in labor costs, but also in comparative advantages in resources such as water, electricity, coal, and other resources.
For example, Taiwan experiences frequent power outages, which severely impacts semiconductor manufacturers' production. Therefore, Taiwan would rather cut off residential power supply than fail to ensure TSMC's industrial power supply.
You don't need to worry about this issue in China.
Electricity is only a small part; a complete and massive supply chain is the biggest comparative advantage of China's manufacturing industry.
Therefore, it is difficult for any manufacturing industry with a certain degree of complexity to completely detach itself from the Chinese market.
The manufacturing industries that have been relocated are mainly low-end manufacturing industries.
Does this mean that China's manufacturing advantages cannot be replaced, and whether America's plan will succeed?
I personally think it's very likely to happen, because China's manufacturing industry isn't as powerful as the media portrays it.
---Aside---
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