FDI and Marqinalization Risk of Manufacturing in China

摘要

In the context of globalization, China is becoming one of the most important area to bear international manufacturing transfer. Because of the weakness in innovation capability, the dominant model of China manufacturing is characterized by high resource cost and low labor force cost. It may succeed in short-time, but would face the risk of marginalization for a long-term. This paper investigated more than 10 industries in China, demonstrated the characteristics of marginalization which include the poor positioning in the international industrial value chain, the low rate of contribution to profit with technology of the finished products and market shares. This paper examined the key factors affecting the marginalization, and the mechanism of marginalization is also analyzed.