|
Although Global Insight says that China's development is not a cause for concern, many Americans disagree.
Boston Consulting Group and Financial Times took an informal poll of 326 people in New York, Los Angeles, Chicago and Houston on their views of U.S. manufacturing versus China. Most respondents were pessimistic about U.S. manufacturing strength, placing the U.S. 20th globally in terms of world manufacturing output for 2007.
One Chicagoan told the survey team, "We don't make anything ?it's all from China." Such a gloomy outlook can be attributed to numerous reasons. For example: -Negative manufacturing news like job losses receives more publicity than plant openings; -Capital goods for industrial use, where the U.S. is a large producer, are barely noticed by most people; -Chinese-made goods are very visible in stores; -It is not widely known that many Chinese imports to the U.S. are based on components made outside China; and -Manufacturing value-added products is a difficult concept to understand.
Contrary to public perception, though, the U.S. manufacturing industry is not suffering because of China's rapid expansion. According to the National Association of Manufacturers (NAM), the U.S. remains the world's largest value-added manufacturer, producing almost a quarter of the world's industrial output. China, according to NAM's analysis, will produce only about 60 percent as much as the U.S. in 2008.
Value-added global manufacturing, estimated at $8.8 trillion in 2007, is forecast to increase by $7 trillion by 2015. China is projected to account for $2.9 trillion of that growth. People need to keep in mind that manufacturing makes up 36 percent of the Chinese economy while it only accounts for 12.5 percent of U.S. GDP, notes the Global Insight report.
More importantly, manufacturing makes up only 17 percent of worldwide GDP in nominal terms (again, not adjusted for inflation or exchange rates) compared to the service sector which makes up 65 percent. The U.S. share in global service-sector output is currently 32 percent while China's is 3.7 percent. This is expected to grow to only 8 percent by 2015.
Basically, the U.S. will likely lose some of its market share of textiles, basic metals, computer equipment and mineral product manufacturing to China, but will continue to lead in high-value industries like aerospace, pharmaceuticals and specialized equipment, Market Watch says.
With its high quality products such as Mineral impact crusher, Aggregate jaw crusher, Sand making machine, Ball mill, Hammer crusher, Henan Hongxing mining machinery Co.Ltd has ascended in the front rank of the world in the exporting of mining equipments.
Related Articles -
business,
|
