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2017 will be a tougher year for most manufacturing enterprises in China, as their reputation as the \"world’s manufacturing hub\" is on the verge of changing historically. High product homogenization and overcapacity prevent sales prices from rising, while export products face even greater competition from regions with lower labor costs worldwide ； Recently, material prices in the domestic market have been rising continuously, labor costs have increased rapidly, and various operating costs have also surged sharply. As a result, the profit margins of enterprises are under increasing pressure, and it is easy to imagine the limited room available for them to survive, generate profits, and grow. Recently, some well-known companies and entrepreneurs have shown a greater inclination to invest in overseas markets, which truly reflects the current situation facing China’s manufacturing sector. For most manufacturing enterprises and entrepreneurs, they have devoted their entire lives or all their wealth to China’s development; their businesses are everything to them, even more so than their own lives. Today, they are confused and lost, not knowing where the way forward lies They constantly think and do their best to find a way out of the difficulties they are facing. However, figuring out how to crack it is like playing chess – complex and unpredictable. In response to the problems faced by manufacturing enterprises today, Mr. Chen Jinghua, a senior consultant at Mingrui Enterprise Management Consulting Company, has put forward his own views, as well as strategies and methods for solving these problems, based on extensive field research and guidance provided to numerous enterprises. Firstly, through 30 years of reform and development, China’s manufacturing sector has evolved from its initial stage of relying on the \"three comes and one supplement\" model to becoming a major manufacturing power with considerable influence and standards, attracting worldwide attention; its achievements are evident to all. However, looking at the development of Europe, the United States, and Japan, societies and enterprises are bound to move from a low-end to a high-end level. For products and enterprises that involve low added value and are labor-intensive, competition inevitably leads to survival of the fittest, and it is inevitable that some enterprises will withdraw from the market. Secondly, implementing industrial relocation may be a way out for some enterprises. Some enterprises have moved to the interior, which has alleviated the labor shortage; farmers can now find work near their homes while also being able to take care of their families, which is a win-win situation. Thirdly, what concerns businesses the most is the hope that taxes and fees can be reduced, and factory construction costs can be lowered. I am not an economist, so I am unable to determine whether taxes and fees are reasonable, but the question is: can they be reduced at this stage? By how much? How much of a difference can reducing it make for enterprises? A company can only make appeals**, but we have no control over when it will rain – so don’t have too high expectations. As for the high costs of land for building factories, there’s nothing that can be done about it. Over the past decade or so, due to urbanization, land and housing prices have risen rapidly, just like in a rocket ship ascent; what else can you do but accept it? Fourth, it is difficult and expensive to obtain financing, which poses a serious problem for most companies that need funds, especially those that are dynamic but lack capital; not only is it hard to get financing, but the costs are also high. Our M2 is over 150 trillion yuan, exceeding that of the United States. Why is financing still so difficult and expensive? A large amount of money is currently circulating outside the real economy; it isn’t flowing into the actual business sector. Otherwise, why would outstanding companies like Vanke, Gree, and Nanpo be acquired by insurance companies or trampled by these so-called \"barbarians\"? It’s because they have too much money to spend and are looking for targets wherever they can find them. In recent years, we have seen **remarkable innovation in financial products; profits are generated quickly and with high returns. Who would want to invest their money in the manufacturing sector, which is part of the real economy? If you want to address the problems of difficult and expensive financing, the only option is to go public; if that’s not possible, then you have to keep holding on until you can go public. Difficulties and high costs in obtaining financing have plagued many private and small and medium-sized enterprises in China for over two decades. If this problem isn’t solved today, it will remain the same in ten years; the companies can only blame themselves – why aren’t they state-owned enterprises? Fifth, product innovation – this is something that companies must excel at, and it remains an eternal theme. If one keeps copying what others create, no progress will be made over time. This is not likely to be part of the Chinese character or habits. The Chinese nation is an ancient civilization, and we have many innovative products that are outstanding on a global scale; China’s high-speed railways are the best example of this. But then again, innovation is also a form of risk, and not all companies can afford to take it on. But in any case, there are great innovations and inventions, as well as minor improvements; the pace of innovation never stops. Sixth, the crude and inefficient management practices must be completely discarded, to be replaced by refined management and a craftsman’s spirit in manufacturing. A large number of enterprises in China, particularly some state-owned enterprises and most small and medium-sized private enterprises, have extremely low efficiency and poor management practices; in some cases, the losses and waste are even intolerable. In recent years, when Chinese people travel abroad, there has been a phenomenon of excessive spending; others treat us like gods of wealth, and some even hold hostility toward us – all trying to take money out of our pockets. Is their excessive spending abroad simply a sign of admiration for foreign things? I don’t think so; I believe there’s another reason behind it, and that is the lack of trust among people in their own products. The low quality of products inevitably leads to consumer resistance and distrust, as well as a range of social problems. The ultimate outcome of competition in the market for products is high quality and high prices, along with excellent service. Therefore, companies that focus only on short-term gains will inevitably fail, while only those that prioritize long-term development are able to withstand the challenges of the market.