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Guangdong upgrades manufacturing sector's industrial chains ahead next FYP

Updated: Oct 27, 2020 CGTN Print
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Aerial photo taken on Aug 13, 2020 shows a view of Shenzhen, South China's Guangdong province. [Photo/Xinhua]

Especially in today's global economy and borderless supply chains, Liu acknowledges that some areas still have room for growth, adding that cooperation and learning are still needed to bring even further upgrades.

"For the automotive industry, specifically, our mould production is basically self-sufficient. But there's still demand for high-precision moulds in relation to electronics," Liu said. "We're building these capabilities through the China Manufacturing Association. In the future, I think our industry chain will be self-sufficient. At the same time, I still think we can learn from German or Japanese companies when it comes to automated equipment."

These are the realities faced by domestic manufacturers. Can the same be said for their foreign-invested counterparts?

Christian Gassner is the director of Limoss, a German company producing actuators and remote controls for customers around the world and with a history of nearly two decades in China. Also sitting as the manufacturing forum vice chair of the European Union Chamber of Commerce in China, Gassner has witnessed many changes with manufacturers based in the city of Dongguan.

"Now that the companies are making automation, they're going into automation more. But it's not as much as maybe China would like to have, because of some technology issues or knowledge which is perhaps missing in some parts here. But the industrialization here is getting… Well, it's huge," said Gassner.

Speaking on automation and utilizing more advanced robotics, costs are a major concern. Labor is also the issue and what to do when manufacturing processes become fully automated and take a toll on where and how people can earn a living.

"'Manual labor' is counterproductive with the industry. We're thinking in the opposite way; we want less time and more output for efficiency. So, this doesn't match. Therefore for future labor, it will be a little bit difficult. But once people adapt, and the new people come into the field and learn how to 'work' with these new machines, they'll be good," Gassner said.

And while automation and robotics are just one part of the province's vision, a fully developed supply chain and resource industry are still major factors attracting foreign investors and encouraging them to stay.

"China is one of the countries of the world, not the only one, that has the best source. You can get literally everything in China, whatever you need. It's still a matter of the quality… but you can get everything."

How upgrading the industrial chain and its direct and indirect effects on other industries and facets of the labor market unfold is surely something beyond the scope of a five-year plan. But for now, economic planners are pushing for changes with hopes of continuing China's economic strength in an ever more interconnected global economy.

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