Since 2011, Foxconn 13 jumps, under the pressure of the same lesson, after the sharp rise in wages at the bottom of China's manufacturing industry, it has been nearly 10 years, and the growth of wages at the bottom of China's society is slow.
It is true that relying on a mature supply chain can make the most cost-effective goods. However, China's two major high-tech industries, communications and automobiles, still have many shortcomings, which are easy to be stuck, and nearly eighty percent of the profits created by the output value are forcibly siphoned off by foreign technology giants, and China's science and technology industry is in fact in a semi-colonial state. The injustice caused by technological colonization is the root cause of low added value and low profits in China's manufacturing industry.
For example, the price of a flagship phone equipped with the latest Qualcomm Snapdragon SOC has risen from more than 2,000 yuan in 2019 when Huawei was sanctioned to more than 4,000 yuan today. The fundamental reason is that Qualcomm's chips, patent fees, baseband chips, RF chips and other mandatory packaging supply solutions account for more than 60% of the cost of the entire mobile phone. An Android flagship mobile phone of more than 4,000 yuan will cost more than 2,000 yuan just to purchase Qualcomm's chips and pay patent fees. The same situation has been around for decades in the PC space.
Whether it is a PC company or an Android mobile phone company in China, there is almost no moat, and the products are not much different, and it is impossible to form a brand premium, so it is impossible to have money to invest in research and development. If such enterprises want to survive, the core is to have enough advertising funds to do a good job in marketing and control channels, which is the key to life and death.
In such an industry environment, the products of these companies are essentially just packaging boxes for American chips and software, and naturally they can only earn packaging profits, while most of the core profits are taken away by American software and chip companies. Without overthrowing the U.S. technological colonization system, even if China's technology industry develops for another 10 or 20 years, it will not make much sense, because under such a system, it is impossible for the income of Chinese industrial workers to grow by leaps and bounds.
If Chinese companies in China's technology industry want to control their own destiny, they must master at least one or more core technologies, otherwise no matter how successful, they will eventually succumb to the capital colonization or technological colonization of the United States. It is almost impossible to get the profits you deserve in your own industry.