The core weakness of the ‘Made in China’ strategy when looking to the world

Since the implementation of reform and opening up, international standards have played a leading role in promoting and enhancing the development of ‘Made in China’.

‘Made in China’ world vision is based on international standards. (Source: Global Times) Sheet Global Times Recently published an article admitting weaknesses in China’s “Made in China” strategy to the world through analysis by author Dinh Cuong, Researcher at the Chongqing Financial Research Institute of Nhan Dan University. Chinese people. Weakness in standards According to the article, the Xinjiang Cotton event reveals a weakness of the “Made in China” strategy in looking to the world, which is the standard. The main reason for the Swiss-based Better Cotton Development Association (BCI) to be able to issue a “refusal to use Xinjiang cotton” with no evidence “, is that the standard is in hand. their. Standards are the fundamental rules of commerce, and standards and eligibility affect 80% of global trade. We live in an age when standards are dominant. According to statistics, there are more than 800,000 different standards worldwide, but only about 2% of which become the world standard. Due to historical factors, most of these international standards were established by developed countries such as the US and Europe. Holding standards equates to holding the right to lead the market and the right to formulate rules over the product otherwise, only behind others. There is a principle in the world that “third-tier firms sell products, second-tier firms sell technology and top-tier firms sell standards”. Chinese enterprises have suffered a lot of the suffering of “third-class enterprises”. Take cell phones as an example, as Chinese enterprises develop technical standards for 3G mobile phones autonomously, The Journal Washington Post (USA) has predicted that when China successfully develops its own 3G technical standards, it will no longer have to pay huge royalties to foreign companies. According to a report published by the German patent information analysis agency IPLytics, as of February 2021, the top 5 enterprises that claimed essential patents for global 5G standards were Huawei, Qualcomm, and ZTE. , Samsung Electronics and Nokia. Standards have become a beacon for Huawei to achieve a high position in the industry and expand its market and revenue share. It should be noted that China cannot overthrow or dismantle the existing system of standards to build another system of standards. In the future, what China needs to do is strengthen leadership and leadership in this system through the setting of new standards, and at the same time push the system to make adjustments and take advantage of the right to participate. decision and the right to speak. China still needs cooperation, this is also an issue that needs to be considered when conducting the “game” with the West in this regard. “Made in China” world vision is based on international standards. Since the implementation of reform and opening up, international standards have played a leading role in promoting and enhancing the development of “Made in China”. In the future, “Made in China” will continue to develop in this path, comprehensive upgrading, towards high quality. Among China’s current standards, some have taken the lead, which is the result of China’s relentless acceleration and expansion of industrialization. This is not only an expansion or upgrade of inherent international standards, but also implies the innovation of China itself. Many obstacles At the 39th General Assembly of the International Organization for Standardization (ISO) held in Beijing in May 2016, China at that time had 189 proposals to become ISO international standards, especially in In the fields of high-speed rail, nuclear power, information and automobiles, China has made a leap from its lagging position to the leading position. The major problem is that although Chinese firms have rebuilt new standards in some key areas or advantageous areas, the application of these new standards still requires a lot of friction. more, longer to the international market. According to the survey on infrastructure construction projects contracted by Chinese enterprises overseas, it can be seen that it is very difficult for Chinese enterprises to create a breakthrough in the field of standards. Most of the infrastructure projects are the construction of bridges, reservoirs, power stations, roads and railways. During domestic development, Chinese enterprises have had many technological innovations, many of which have surpassed international standards. However, Chinese firms still encounter varying degrees of difficulty in applying Chinese standards to these overseas projects. China’s manufacturing industry needs to make more efforts to meet international standards. (Source: Caixin) In such troubles, the technical staff of Chinese enterprises can often only convince the supervisory department and the contracting party, and use the actual results to prove the feasibility of the company. Chinese technology and Chinese standards. In many cases, businesses are forced to revert to using the inherent international standards. The current international standard system has been in existence for a long time, China needs to have enough patience and a long-term world vision in the long term to rise in standards. Chinese standards face many tiers of obstacles. From the Xinjiang Cotton event, it can be seen that even if Chinese products are of good quality and up to standard, as long as the brand is still controlled by others, it will be beneficial to Western political forces. use. Judging from the 5G situation, the more China rises, the more difficult it becomes. During the XIII Five-Year Plan, China issued 285 national standards for smart manufacturing, leading the construction of 47 international standards, covering all production processes of enterprises. This sector has now become the focus of the game between China and the West. China’s manufacturing industry needs to work harder to meet the standards, but the question is whether Western countries can, or to some extent, adopt and follow the new standards set by China. National construction or not? In the US, recently there have been many voices calling for the manufacturing industry to return to the country, but the return of the entire production chain is not possible. This does not mean that the US will give up on the value chain it dominates. How to bring into full play the design and regulation capabilities of the state, make the correct choice between competition and cooperation, between openness and management, between protecting interests and transferring claims ask for an accurate long-term vision and calculation (According to Global Times)