Author: Cao Dewang

Regarding the documentary of the American factory, I promised them at first that the Americans could see an uninterrupted factory that Chinese companies invested and operated in the United States and factories belonging to China Fuyao Group.So, I said to them, you can take what you can see.Later, the American producer of this documentary told me that they would respect the facts and not break the context.

The consequences of the US manufacturing industry

As early as 2007, Fuyao Glass's share in China's domestic market had reached 60%, ranking first.However, we have only 3%in the global market. Expanding overseas markets has become an inevitable path for enterprises to become bigger and stronger.In 2010, the United States General Motors asked Fuyao that it was necessary to build a factories in the United States before 2016, which has also become the main reason why we seek investment factories in the United States.

When I first built a factory in the United States, I left a deep impression that the Americans who were willing to work in the factory were all elderly people, and there were basically no young people.Young people in the United States are willing to live on Wall Street and Silicon Valley.Our company has organized many recruitment in the United States over the years, and basically cannot recruit young people.

Some people say that the salary we give is low, and Americans don't see it, but it is not at all.We have done statistics and comparisons. From the perspective of the local income level and salary standards of other enterprises in the same industry, the salary income of our enterprises to employees is very competitive.However, you still can't recruit young people.In my opinion, this is the consequences of the decades of decades that caused the hollow of the United States to move out of these decades.

Judging from my more than ten years of investing in factories in the United States, now in the United States in manufacturing, the advantages are mainly reflected in three aspects: one is low resources, the other is low taxes and fees, and the third is strong market demand.In terms of artificially, the largest shortcoming in the United States is that the labor cost is higher, and it is very lacking in the manufacturing industry very lack of young managers and blue -collar workers.At the same time, the core value of American culture is the so -called democracy and freedom. It is reflected in the enterprise that you can't care about me, everything is mainly voluntary.The national union organization represents the comparison of workers and the owners of the investors. In principle, the government does not interfere with the incidents between labor and capital, causing low efficiency.

China's advantage is not so prominent

In 1995, I started trying to invest in the United States, and 10 million US dollars (S $ 13.74 million) was almost losing time by 1998. The main reason was that the investment strategy was dislocated.After the establishment of large -scale enterprises in the United States, in addition to the differences in cultural and economic differences between China and the United States, I think I should think about two issues: What are the advantages of Chinese factories and the advantages of American factories?How do we maintain the advantage of manufacturing?

China's manufacturing advantage has been listed in three aspects in the past: low labor costs, high quality of manufacturing workers, and cheap industrial land prices.But from the analysis of various aspects, these advantages have become relatively less prominent.

For example, in this factory in the United States, employees' salary accounts for 35%to 40%of sales.In China, we have increased a large amount of automated production equipment to reduce labor costs, and comprehensive labor costs account for about 20%.However, there are some advantages in the United States, taxes and fees, and saving products from China to the United States.The US tax is simpler. The federal income tax is levied at 25%of the company's operating profits. If there is no profit without profit, there is no tax burden.In addition to income tax, there is another value -added tax. Regardless of whether the enterprise has or not or not, it must be paid, which is equivalent to 6%of the turnover.At the same time, the United States Federation also has a toll project similar to China ’s five insurances and one gold, but in the United States, it is 11%of the salary of workers, and China is 40%of the salary payable.Therefore, this similar subject is 50%less than China, which is equivalent to 4%of the turnover.From our statistics, if we consider comprehensive labor costs with taxes and fees, our factories in China are basically the same as factories in the United States.An important advantage of Chinese workers is higher than American workers in terms of business quality, work efficiency and obedience management.

For the car glass industry, long -distance transportation is required to be packed in order to avoid crushing, and the car glass produced from the Chinese factory to American auto manufacturers is a lot of expenses, which is equivalent to a turnover, which is equivalent to the turnover of turnover.15%.In this way, the cost of operating a car glass manufacturer in China and the United States is basically the same.China is not in an advantage.

The U.S. trade unions have brought a lot of legal and time response costs to manufacturing companies in the past. Today, the US government and relevant departments are building a channel for normalization of labor relations.For example, in the past, the United States stipulated that each enterprise must establish a union, but now the right to decide to be handed over to enterprise employees, and they vote for their own votes to decide whether to establish a union.We have worked hard and have more work in the United States, and they are more quality and excellent. In fact, we are gradually accepted by American workers.

In order to restore the status of manufacturing countries, the Obama administration has launched a series of corresponding support policies around the manufacturing return strategy since 2009.The state governments also responded positively and made great efforts.The Government of Morimon District, Ohio, Ohio, Ohio, and the Ohio Government promised that as long as we hire more than 1,500 U.S. employees, the government will issue a subsidy of hundreds of thousands of dollars to Fuyao each year.more.Enterprises' land land use in the local area will also be removed from part of the property rights tax.

The manufacturing must not be lost

China should maintain its own advantages and build a high degree of modernization in China. The manufacturing industry must not be lost. It must focus on how to consolidate the manufacturing advantage.Real estate -related industries, Internet finance and some service industries have now absorbed a large number of young employment groups, and labor costs have also risen, which has raised the cost of manufacturing.In my opinion, compared with other industries, the importance of manufacturing in international competition is greater.

Now China has also appeared in the US trend MDASH; mdash; de -industrialization trend.We neglected that the de -industrialization proposed by the United States in the late 1970s was based on their status of the world's first industrial power.What do you do after industrialization?The virtual economy is the tertiary industry MDASH; mdash; service industry.Who serves the industrial economy without forming and the lack of industrial workers?This problem must be raised seriously and it is worth thinking about.

I think to maintain the advantages of China's manufacturing industry, we should do two efforts at present:

First of all, the tax design and tax burden design should be in line with international standards to make manufacturers more energetic.Now the country has paid attention to this aspect, and has made a lot of efforts to effectively reduce the burden on manufacturing enterprises.However, we are also changing at the same time, so we must be in line with international standards, and we need to want more ways to make companies more vivid.

Second, Chinese enterprises' international competitiveness is at the middle and lower levels. We must further improve our technical advantages and competitive advantages in the industry in the industry.Now we have some export processing companies to save the product in Southeast Asian countries in order to save costs, and then take it back for the final assembly and facilities. Although the export volume has been maintained or even increased, it actually belongs to all foreign exchange in my country. I can't see it.This phenomenon should be paid attention to and resolved.

People say that the road to industrialization is difficult. From the United States, we can see that the road to industrialization is even more difficult.Today, we have many farmers entering the city from the countryside to become a migrant army.If our manufacturing industry shrinks, employment absorption ability will have problems.If a country wants to ensure the employment and benefits of ordinary people, it must not lose the manufacturing industry.Because the manufacturing industry is the second industry, only the secondary industry is developed, can there be a demand for the service industry and the prosperity of the service industry.

(The author is the chairman of the Fuyao Group, and this article is interviewed by Hu Jinshang)