Made in China: The Asian Dragon's Manufacturing Moves
Made in China: The Asian Dragon's Manufacturing Moves
With India announcing its Make in India campaign, China decided it was time to protect its turf. The Asian dragon has let loose the Made in China campaign wherein China seeks to maintain its legendary prowess in manufacturing. While India is moving on to try and capture the throne, China is seeking to hold on to the title of being the top manufacturers in the world.
In a bid to retain its manufacturing prowess, China will encourage high tech imports as well as R & D, as part of the campaign announced by the Chinese central government. As part of this new campaign, the Asia superpower will be using tax breaks to enable enterprises to improve their equipment and infrastructure. Efforts are also on to improve China's manufacturing skills on the R& D front.
A Cabinet under the guidance of Chinese premier Li Keqiang decided that companies in China which have purchased new equipment and facilities for research and development after January1 or those with minor fixed assets will benefit from tax reduction based on values.
In sectors such as biomedicine, aviation, railway and shipping manufacturing and electronics as well as instrument production in the field of IT, communications and software, important of technologically advanced equipment will attract considerable tax deductions.
Meanwhile, the Indian embassy as well as consulates in Shanghai, Hong Kong and Gunagzhou organised special investment promotion events for the Make in India campaign here. China is countering the campaign because India, in many ways, is a contender for the number one spot in manufacturing. R&D is growing here and we also have the demographic dividend. All that is needed is a few good incentives and breaks for the manufacturing sector and India can easily reach the top spot one day.
But China is actively countering this by promoting innovation with special reference to small and medium sized companies, organisations and enterprises. It is the world's second largest economy. This economic powerhouse has gained quite a lead in manufacturing. Its recent flash PMI results were a complete contradiction of bleak expectations from this nation's manufacturing sector.
The Chinese Cabinet has also requested the government run organisations for early implementation of these measures to bolster the Made in China campaign. The aim is to manufacture high quality, competitively priced products without compromising on either aspect of production.
Analysts have regarded China's manufacturing prowess as considerable and media reports indicate they are of the opinion that fixed assets investment will increase in China as a result of this campaign. India and China have always been rivals in the race for being an economic powerhouse. With the latest campaigns unleashed within days of each other, the race has just started getting challenging.
