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Last updated at: (Beijing Time) Tuesday, March 25, 2003

China not 'World Factory', but One of Its Workshop

China is not "the world factory" as overstated by some overseas economists, but rather one of the workshops in this global manufacturing system, a top Chinese economist said Monday.


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China is not "the world factory" as overstated by some overseas economists, but rather one of the workshops in this global manufacturing system, a top Chinese economist said Monday.

The economist said that while there is some misunderstanding and prejudice with regard to China's miraculous economic growth, most analyses were positive and fair.

China has built a solid foundation in the manufacturing sector over the past decades. With cheap labor and vast market potential to lure foreign investors, the country has achieved rapid growth due to the ongoing industrial restructuring efforts worldwide, according to Wang Mengkui, director of the Development Research Center (DRC), a major think-tank of the Chinese State Council, or the Chinese cabinet.

Wang spoke to the annual DRC-sponsored summit on China's economy which opened Monday, noting that the bulk of Chinese exports were labor-intensive products, the result of manipulating China's comparative advantage in labor.

He quoted 1999 figures showing China's share in world manufacturing output as five percent, while the United States accounted for 20 percent, and Japan, 15 percent.

In 2001, there were 11 Chinese enterprises listed among the World's Top 500 Companies, but not all were from the manufacturing sector, according to the director. He also disclosed that 70 percent of the exports of China's top 200 exporting enterprises are processed goods, which indicates that the country is a workshop of the world processing industry.


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