Aug 06,2018

How is the China Manufacturing 2025 Automation Equipment Industry + The Belt and Road

The concept of China Manufacturing 2025 and the Belt and Road Initiative is close to the time. The former is related to the concepts related to manufacturing such as Industrial Internet and Industry 4.0, while the latter is China's foreign policy. For more than two years, China Manufacturing 2025 and the Belt and Road Initiative are real. The level of performance has achieved good results, but the facing problems are more and more difficult. For example, in Southeast Asia, the growth rate of the industrial economy is slowing down, and international cooperation projects are “greater calls with fewer actions ”. If put the China Manufacturing 2025 and the Belt and Road Initiative into practive,  will it have the effect of 1+1>2.


The status quo of manufacturing development in Southeast Asia

There are 11 countries in Southeast Asia, including Myanmar, Laos, Vietnam, Thailand, Cambodia, Malaysia, the Philippines, Brunei, Singapore, Indonesia and East Timor. Except for East Timor, the remaining 10 countries are members of the Association of Southeast Asian Nations (ASEAN). For a long time, China and Southeast Asia have enjoyed close economic and trade exchanges. China has become the largest trading partner of Myanmar, Malaysia, Vietnam, and Singapore. In recent years, due to factors such as geopolitics and weak global economic growth, the economic and trade exchanges between China and Southeast Asia have slowed down compared with the previous years. However, given the geographical proximity of China and Southeast Asian countries, similar industrial structure and complementary resources, China and Southeast Asian countries still have great prospects for cooperation in many fields such as high-speed rail, nuclear power, and communications.

The characteristics of industrial manufacturing and automation equipment industry in Southeast Asian countries are obvious – most countries are in the stage of industrialization realization, and the industry, especially the overall level of manufacturing. The current internationally accepted evaluation criteria for industrial development are empirical criteria proposed by economists Kuznets, Channery, Serki and others. The judgment basis is shown in Table 1.

According to the data released by the World Bank in 2015, the industrial added value of Southeast Asian countries accounts for a small proportion of GDP. Apart from Singapore's post-industrialization stage, most countries are in the early and middle stages of industrialization. From the perspective of manufacturing, it is mainly based on general processing and manufacturing. Details are showed in Table 2.

In addition, the manufacturing competitiveness of Southeast Asian countries is wide. Singapore, Malaysia, Thailand, Vietnam, and Indonesia are more competitive in manufacturing and are listed in the top 20 global manufacturing competitiveness in Deloitte's 2016 Global Manufacturing Competitiveness Index. The manufacturing competitiveness of countries such as Myanmar, Laos, and Cambodia is relatively weak.