China has developed a comprehensive industrial system, marked by intense competition in various market segments. Through competitive growth, Chinese companies have amassed valuable experience and have transformed their product and service advantages into international trade partnerships. In fact, Chinese-made products provide essential conditions for countries to participate in global trade with higher added value, aiding in industrial expansion and driving economic development.
Strengthening Global Supply Chain Resilience
In recent years, economic globalization has faced challenges, with trade protectionism causing market uncertainties. Some countries, citing national and supply chain security, have intensified regulatory controls, disrupting business decisions and triggering market fluctuations.
For example, in the semiconductor sector, the U.S. requires primary suppliers to provide critical data like order details, partnership demands, and supply timelines. Such measures expose commercial secrets and lead to losses, causing global concern. To mitigate supply risks, many companies have had to increase inventory, adding pressure on the global supply chain.
Despite restrictions, China’s semiconductor manufacturing has expanded significantly. China not only meets domestic demand but also eases global chip shortages through exports. From January to June 2024, China’s semiconductor exports reached $76.41 billion, marking a 21.6% year-on-year increase, contributing to seven consecutive months of global growth in semiconductor sales.
A Hub for Technological Advancement
Chinese manufacturers continuously enhance their technological capabilities through R&D, identifying new applications internationally. Manufacturing remains a significant sector for Chinese overseas investment, with companies leveraging their advantages to create growth momentum and more opportunities for global partners.
Technologically advanced Chinese products, especially electronics and machinery, play a crucial role in supporting economic and social development across different nations. For example, Chinese photovoltaic and infrastructure projects in Africa are helping to increase energy self-sufficiency and industrial capacity on the continent. The experience of China’s manufacturing system has thus become an influential source of industrial growth and innovation worldwide.
China’s Role in Inflation Control
Due to large-scale production, Chinese manufacturing has driven efficiency, meeting the increasing global demand for goods and acting as a stabilizing force against inflation. Unlike monetary policy adjustments, which often fail to curb inflation effectively, China’s production and export capacity for industrial goods helps to address supply shortages and align with global demand.
Chinese manufacturing, known for utilizing imported raw materials like iron ore and oil, has minimized resource constraints while achieving economies of scale. Leading multinational companies, such as Tesla and Apple, have relied on Chinese production networks to reduce product timelines and enhance efficiency.
Promoting Global Value Chain Participation
China has facilitated the integration of various nations into global value chains. Many developing countries view industrialization as key to economic development. By establishing production in China, multinational companies reduce costs and benefit from optimized resources.
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