“Made in China” is no longer merely about low labor costs. With globalization expanding the scale of industrial chains, the share of labor cost in total production has been decreasing due to economies of scale. Moreover, the widespread adoption of new technologies, automation, and artificial intelligence has accelerated the shift toward a consumption-driven society.
One of the most successful aspects of China’s economic policy in recent years lies in stimulating consumer demand and establishing a unified national consumer market. Of course, this transformation has also brought challenges such as income inequality, which calls for reform in redistribution mechanisms—including enhanced social welfare—to further unlock consumption potential.
Built on high-quality infrastructure and comprehensive modern facilities, China’s domestic market has witnessed unprecedented growth. This is evident in the success many brands are experiencing in second-tier cities. The modern economic structure is now driven by capital-led innovation and consumer demand, reflecting the natural outcome of improved material foundations across human society. In this context, the model in developed countries—emphasizing consumption over production—has become mainstream.
In today’s globalized world, centralized production and supply groups can significantly improve efficiency and better meet the profit expectations of large multinational capital. Without such scale, the growth of leading capital players would be impossible. While there is some level of competition between financial and industrial capital—occasionally giving rise to perceived trends like decoupling or reshoring of manufacturing—these do not indicate a real shift in the global capital structure. Countries remain economically interdependent, with mutual demand and exchange at the core.
The negotiation and tug-of-war between nations may introduce volatility and uncertainty to the global economy. However, such uncertainties mainly serve as opportunities for the redistribution of power. Once a new geopolitical and economic equilibrium is reached, the world will enter a new phase of market discovery and growth—representing the next wave of development opportunities.
Competing with already mature industrial capital groups in production capacity is unwise. Instead, cooperation, demand creation, and the pursuit of more efficient production models represent the only viable path for manufacturing innovation in developed economies.