The "Glass King" Cao Dewang careless, but the listener interested, Chinese manufacturing embarrassing topic again exciting. Cao Dewang on Sino US manufacturing industry cost comparison and afterwards, as to rely on the advantages of low cost Chinese manufacturing "a head-on blow", also let the tax cuts for manufacturing the down payment voice sounded again.

First of all, the tax burden in the past does not become a problem, is China economy and cost is not a sharp rise stride forward singing militant songs, so, the day of the enterprise will have a smooth. But when the economy slows down, the problem of tax burden is highlighted, and the pressure on enterprises is increasing. This time forced pressure, is actually a double-edged sword, there may be forced out of a way of innovation and transformation, there may be forced to move not dead. In addition to the tax burden, the increase of the cost of land use is also unbearable for enterprises. Because the place is extremely dependent on the "land finance", so China land cost is becoming a stumbling block and a stumbling block to enterprises. Zong Qinghou, the chairman of Wahaha, complained that the price of industrial land was too high, and Shenzhen also made HUAWEI choose to move part of its business because of its high land price.

Reducing taxes and reducing fees has been an important part of government administration in the past years, and has become an important part of the structural reform of the supply side this year. The scale of tax reduction for the "camp to increase" is about 500 billion yuan, and the new tax reform of the individual tax will also take a substantial step next year. In spite of this, the corporate tax sense is still strong. Many tax cuts, which are constrained by local "soft resistance", are not really implemented, or tax increases or taxes are increased, or instead of tax impulses strengthened by "strengthening tax collection and administration".

The fundamental reason is that public power is still outside the system cage to a certain extent, and is still free to expand at will. In this way, on the one hand, the government departments refuse to reduce the staff and reduce the expenditure, but on the other hand, they can impulsively levy taxes into taxes (Fees), so businesses and individuals continue to bear the pressure of heavy taxes. Therefore, Chinese economic massive tax cuts, from the technical level is the government real flesh profits, such as reducing the number one value-added tax rate; from the strategic level is not forget the deep change of heart, to clarify the boundary between government and market, have the right to not have the right balance will be capricious.

Secondly, the cost of China's manufacturing industry is not only the problem of tax burden, but also the problem of excess capacity. Many enterprises are still "tenacious" to produce medium and low end products, and do not want to expand their product and brand value. A large number of companies gathered in the meagre margins, costs are high because the market is difficult to clearing and. On the one hand, China's manufacturing oversupply on the low and middle end products, and on the other hand, it doesn't supply enough products, so how to break through this imbalance determines who will compete with China in the future. The better result is a high point with the US and Japanese Derby, and the worse result is still low cost to compete with Southeast Asia.

In fact, after so many years of development, Chinese manufacturing still has the advantages of comprehensive cost, such as complete infrastructure support and the agglomeration effect of the whole industrial chain, which is unmatched by some low-cost countries in Southeast Asia and South Asia. Compared with the low cost competition pure, Chinese manufacturing and do not care, because we are driving the cage for a bird, but also of industrial restructuring and upgrading in the flow. But if the cost of manufacturing in China and the cost line in the US are much more severe, the latter will be very competitive in innovation, technology, property rights, intellectual property rights, and dollars. Therefore, Chinese manufacturing needs to be hard in the "two hands" of transformation and cost reduction, to avoid being a "sandwich layer".