In the past 30 years, with the implementation of China’s reforming and opening
policy, China has become the most competitive economy in the field of manufacturing field all the world. So China made products have been exported to everywhere in the world, and also has become the largest export country in the world. Although China succeeds in the global manufacturing field, with international situation changed, including labor cost advantage disappeared gradually, raw material price surging and RMB appreciated continuously, China manufactured products started to lose its due competitiveness in the international market. Therefore, China economy must have a new transformation from manufacturing to innovating technology. So it is time for China to have strategic plans to establish innovative and creative economy system. Regarding the strategic plans, our recommendation involves in two aspects including what China government should do and what all Chinese companies should do.
For Chinese companies, they are confronting very hard situation these years, that manufacturing advantage is disappearing gradually while China manufactured products’ image in the mind of overseas consumers is still very worse, just “low
quality, low price”, even in China. According to Stan Shih Smile curve of value, the lowest value item in the production chain is the manufacturing of the products.
Taking Iphone as example, the real value of the products is in the development and end-use. It is estimated that of the $400 price of an iPhone a mere $5 goes to manufacturing in China, about $45 goes to Japan and Korea for parts, the other $350 to the US or in this case ,Apple. That is why every iPhone say “Designed by
Apple in California .Assembled in China”.