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High-tech edge is needed

By Zhang Monan | China Daily | Updated: 2012-02-03 08:06

China's long-held, low-cost manufacturing advantages are dwindling and it must make greater inputs into innovation

Manufacturing has played a key role in the growth of China's economy. In 2010, China's manufacturing output accounted for 19.8 percent of the world's total, slightly higher than US manufacturing's 19.4 percent. Statistics from the United Nations show that the output of China's manufacturing reached $2.05 trillion last year under the early 2011 exchange rate, compared with the $1.78 trillion of the United States.

Despite this, "made in China" still lags behind the US in terms of its wealth creation capabilities. Statistics show that China's manufacturing productivity and value added are about 4.38 percent of the US', 4.37 percent of Japan's and 5.56 percent of Germany's. China had only 17 of the world's 500 most influential manufacturing brands in 2010. Lying at the middle- and low-end of the world's manufacturing chain, China's exports are mostly low-technology, low value-added products, while its imports are high-tech, high value-added products.

High-tech edge is needed

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