The Washington Post recently published an article on the transformation of Chinese manufacturing, arguing that automation, innovative design and efficient logistics are helping China become more competitive in a growing range of high-tech product categories.
Citing a highly automated car factory in Beijing, the article noted that industrial robots, driverless transport equipment and automated production systems are now widely deployed. Michael Dunne, a U.S. automotive industry consultant, said Chinese automakers have widely applied automation and robotics to raise efficiency and now operate some of the world's most advanced car plants.
The shift is not limited to autos. Chinese manufacturing was once known mainly for labor-intensive goods such as clothing and toys, but more Chinese companies are now entering higher-technology industries such as new energy vehicles and robotics.
China's share of global manufacturing keeps rising. Citing UNIDO data, the Post said China now accounts for about 30 percent of global manufacturing value added, up sharply from 2010 and more than the combined total of the United States, Germany, Japan and South Korea.
The sources of competitiveness are also changing. Some analysts argue that Chinese firms are winning market share increasingly through technological progress, product performance and more attractive value for money rather than traditional cost advantages.
Louis Kuijs, chief Asia-Pacific economist at S&P Global Ratings, said China has made substantial progress in technology, Chinese companies are strong and fast-moving, and their products offer a strong combination of price and quality.
Automation is further lifting efficiency. Chinese factories have deployed large numbers of collaborative robots, automated conveying systems and machine-vision quality inspection equipment. Highly automated Chinese car plants can operate at 25 to 30 percent lower production cost than those in the United States or Europe.
The article stressed that this efficiency advantage is not the result of low-cost labor but of highly concentrated supply chains, optimized production processes and rising automation. At one Beijing car plant, about 700 robots work in coordination, with a new vehicle rolling off the line every 76 seconds.
The Post concluded that Chinese manufacturing is moving beyond scale and cost advantages toward advantages in technology, efficiency and industrial chain coordination, with its competitive strengths becoming more evident as more companies enter high-technology, high-value-added industries.
