Experts Say It's Now Time to Re-Tool the 'World's Factory'
China should accelerate innovation to support growth rather than remaining the "world's factory", though its traditional manufacturing role does help the country remain a leading driver of the world economy, said experts at the Summer Davos Forum that began in Tianjin on Tuesday.
Manufacturing has long been China's major strength, but that can be replicated elsewhere, Bhaskar Chakravorti, senior associate dean at the Fletcher School at Tufts University in the United States, said on the sidelines of the annual event.
Some foreign investors have already moved their manufacturing bases to other Asian countries such as Vietnam, Thailand and India where labor costs are lower.
Experts at the forum said China should realize its low-end manufacturing model is no longer sustainable.
"Every country needs to pick its own competitive edge," said Chakravorti. "China has benefited from large-scale manufacturing-driven growth for a long time, so I think it's time to divert from massive manufacturing and replication capability, and look into self-innovation."
The economist noted that self-innovation capabilities require a much longer development period and deeper roots in education starting from kindergarten and primary school.
"The Chinese education system is typically Asian and highly disciplined, which is producing bright young people who are not fundamentally trained to think about solving problems or redesigning things," he said.
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