"Produce" or "Create"--- China Electronics labor market and trend

The electronic industry in China----from ”produce” to ”create”

The transformation decides the picture of Chinese labor market in electronic industry.

 

Around the PRD (Pearl River Delta) area in China, there is a dazzling star who called Guangdong. The birth province of electronic industry in China.

No matter the volume of production, the value of production or the export share, it ranks the top in comparing to other province there.

 

The future of Guangdong electronic park is not only rely on the cheap labor market to provide all kinds of international brand, however, the main focus turns to create and develop the domestic brands such as BBK and Nintaus, at least in the same level with this two big domestic brands.

This is not only a change in one province, but rather a thinking for the future of electriconic industry in China. A thinking about to “produce” or to “create”.

Comparing to these international electronic giants like Philips, Nokia, Samsung and Sony which located in Pearl River Delta electronic park, the core technology and self-owned brand has become the drawback of the whole park.

In the personal computer production, it lacks of R&D center for chips; in electronic export, the self-owned brand has take less than 10% of the whole number. The so called “giant in exports, dwarf in brands” totally describe the electronic industry in China. The self-owned brand can even be counted.

Recently, there are some domestic and international brand growing in the electronic market, however due to the lack of supporting core technology, appealing the current market but cannot stand for a long-time competition, in addition to the pressure of trade barriers and technology barriers, the life cycle of those brand has been shorten very quickly.

 

The key point of branding is to use brand building-led innovation in technology and products, in order to improve the competitiveness. For this, China still has a long way to transform, the reason is there is no strong driven for independent innovation in China, seeing from the aspect of government, the policy of stimulating independent innovation is not settled yet.

But it shows definitely that government is supporting it. From more see the video below:

 

 

 

 

Nevertheless, in the mean time from the social aspect, just take a look from Pearl River Delta electronic park, there are 15 enterprises have self launched a union for putting the top talents and investments together, lessen every single cost of the innovation. Here we can mention a successful Chinese enterprise Huawei which ranks in top 50 in Chinese outstanding enterprises. The aim for China is to build several enterprises like it from now on.

 

In decades, China had grabbed such a huge international market relies on cheap labor, however with the economy keeping growing recently, the advantage of “cheap labor” is gradually fading as well. If China does not make a revolution in technological process, then the “Made in China” from “huge” to “strong” will be a reachless dream.

 

From this we can see China is concentrate on develop talents in electronic industry, many younger workers, typically better-educated, seek higher salaries at technology companies, fuelled by fast productivity gains. Many also believe the jobs more interesting. China’s labor market, like the country, is diverse. Electronics companies have no worker shortages.
The Chinese labor market provides plenty of opportunity for developing the electronic industry, however what could be changed will see the job done by incentives from government and strength of domestic enterprises.