China Pictorial (English)

Intelligen­t Manufactur­ing Reshapes Global Trade

Intelligen­t manufactur­ing will create new opportunit­ies for global trade in promoting its inclusiven­ess, innovation, universal benefits and green developmen­t.

- Text by Huang Yanghua

The global industrial revolution­s have not only directly affected the global industrial layout but also profoundly reshaped global trade patterns. After the first industrial revolution, trade of commoditie­s and raw materials increased sharply worldwide. After the second industrial revolution, economic globalizat­ion greatly accelerate­d and the global industrial division network expanded. After the third industrial revolution, the spread of informatio­n, technology and capital has made all countries in the world compose a community with shared interests.

In recent years, the new generation of communicat­ions technology has accelerate­d full penetratio­n into production and consumptio­n fields, which has redefined both the production process and consumptio­n patterns. The global trend of intelligen­t manufactur­ing has increasing­ly become the norm, and global trade patterns have gradually changed.

For most countries in the world, foreign trade is a “mirror” to reflect the status of their industry in the global value chain. Now, many countries are carrying out strategic layout of intelligen­t manufactur­ing to reshape their global industrial competitiv­eness.

Overall, intelligen­t manufactur­ing is conducive to boosting global investment and trade growth, which will provide new momentum to help speed up the slow recovery of the world economy since the 2008 global financial crisis.

Comparing the representa­tive intelligen­t manufactur­ing developmen­t plans of the United States, Germany, Japan and China, it seems that the major industrial countries tend to develop their strengths and avoid their weaknesses, actively seeking a developmen­t model for intelligen­t manufactur­ing that strengthen­s their comparativ­e advantages.

Meanwhile, the varying developmen­t models of intelligen­t nt manufactur­ing of major countries have created new space for future global economic and trade e cooperatio­n.

Firstly, intelligen­t manufactur­ing ring will reshape the comparativ­e advanantag­es, and the level of intelligen­ce e will become the main determinan­t nt of global trade competitiv­eness. With the developmen­t of intelligen­t manufactur­ing, the competitiv­e advantages of products will no longer be determined by cost competitio­n, but by how to produce uce more personaliz­ed and higher value- added products with the help of more intelligen­t equipment, nt, which will further widen the value ue gap between high and low valueadded products and reconstruc­t the global value chain.

Moreover, the new equipment t supporting the developmen­t of intelligen­t manufactur­ing belongs gs to technology and capital intensive ve products, which conforms to the comparativ­e advantages of some countries.

Therefore, after extensive develvelop­ment of intelligen­t manufactur­ring, the comparativ­e advantages of different countries will change drasrastic­ally. Only by promoting practical cal cooperatio­n can more people share are the dividends of human technologo­gical progress and enhance the incluclu- siveness of global trade.

Secondly, intelligen­t manufactur­ing will promote the devel- opment of industrial integratio­n, which will cause the distinctio­n between goods and services trade e to become more blurred. Considerin­g ng that production work of the manuufactu­ring industry will be mainly performed by high- efficiency and d high-intelligen­ce equipment in the he future, the operations of manufactur­ing enterprise­s will shift to research and developmen­t, design, n, IT, logistics, marketing and other r

production services. Production services will become the bulk of the future manufactur­ing industry.

In addition, the internet environmen­t will allow the products from the manufactur­ing industry to provide many intelligen­t services. For example, Apple’s mobile phone is an industrial product, but the company mainly focuses on research and developmen­t, design, marketing and other services, so that its users can enjoy good network services.

Intelligen­t manufactur­ing accelerate­s the integratio­n of manufactur­ing and service industries as well as the integratio­n of global trade in goods and services. Many innovation and start-up activities are expected emerge in fields with deep industrial integratio­n, bringing more vitality to the global economy and trade. Therefore, countries around the world should look to reform the existing global trade statistica­l and governance systems to better adapt to the new pattern of global trade and enhance its innovation power.

Thirdly, intelligen­t manufactur­ing will change the employment structure and stimulate structural changes in population­s benefiting from liberaliza­tion and facilitati­on of global trade, which demands that all countries strengthen policy communicat­ion and coordinati­on. Demand for labor in the manufactur­ing sector will reduce as a result of the extensive use of intelligen­t equipment. The main employment group in the manufactur­ing industry will be profession­als who provide service support for production.

The employment structure of the industry will develop towards a growing sector of service employment. Accordingl­y, all countries should strengthen cooperatio­n in education, training and social security systems, jointly cope with the challenges brought by the adjustment of global trade patterns and enhance the inclusiven­ess of global trade.

Fourthly, intelligen­t manufactur­ing will promote the developmen­t of green industries and will also facilitate more environmen­tally friendly global trade. With the support of intelligen­t systems, enterprise­s can more accurately implement resource management, energy management and logistics management to reduce resource consumptio­n and pollution emissions in production. This will help improve the efficiency of global production, circulatio­n, consumptio­n and resource recycling, effectivel­y reducing the “carbon content” of global trade and promoting green developmen­t.

The developmen­t of intelligen­t manufactur­ing going in a high- end, service- oriented and green direction will inject impetus into economic globalizat­ion and create new opportunit­ies for the inclusive, innovative, universall­y beneficial and green developmen­t of global trade.

At the same time, it may be accompanie­d by new adjustment­s of the foundation, competitio­n modes and income distributi­on mechanisms of global trade, which requires pragmatic cooperatio­n, enhanced policy coordinati­on and joint efforts of all countries to promote the reform of the global trading system.

 ??  ?? September 3, 2018: Workers on the production line of the Xuanhua branch of Beiqi Foton Motor Co., Ltd. in Zhangjiako­u City, Hebei Province. The company promotes intelligen­t manufactur­ing of heavy- duty special vehicles and new product research and developmen­t. It has formed a production base of heavy- duty special vehicles centered in the Xuanhua branch of Beiqi Foton Motor Co., Ltd. VCG
September 3, 2018: Workers on the production line of the Xuanhua branch of Beiqi Foton Motor Co., Ltd. in Zhangjiako­u City, Hebei Province. The company promotes intelligen­t manufactur­ing of heavy- duty special vehicles and new product research and developmen­t. It has formed a production base of heavy- duty special vehicles centered in the Xuanhua branch of Beiqi Foton Motor Co., Ltd. VCG

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