Microblog insights

Topic 1: In recent years, labor costs in China have continued to rise and many manufacturing companies have started to consider moving to other countries where wages are lower. However, China undoubtedly still has big advantages in infrastructure, production efficiency and human resources. The official micro blog of The Wall Street Journal's Chinese version asked how long people think China can keep its position as the "world's factory".

AIRGG: It all depends on national domestic policy, the macroeconomic environment and the self-growth of domestic entrepreneurs. For Japan and Germany, which enjoy much higher labor costs than us, their manufacturing industries have been performing well both in volume and value to date. I think it will take about five years before China surrenders the throne of world factory if the government continues to position itself just as a low-end processor of given materials.

MR_AFFLICK: It might be a favorable turn for China's industrial restructuring. Take lessons from Germany and combine "Made in China" and "Created in China", as well as promoting the development of tertiary industry. It's really not something to be proud of to be the world's factory.

Topic 2: Effective from June 1, consumers could get subsidies of 400 yuan ($63.5) at most when purchasing energy-saving home air-conditioners and flat-panel televisions, according to the policy released by the National Development and Reform Commission on May 28. It's part of the country's campaign to stimulate the consumption of energy-efficient household electrical appliances. The government will offer 26.5 billion yuan in total for this campaign for the year ending on May 31 next year. Analysts said that specific subsidy terms for refrigerators, washing machines and heaters will soon come out.

DONGYANGANDYANG: It is the sluggish performance of the home electrical appliances market in the first half of this year that brings about the subsidy policy. The businesses will be the beneficiary in the end.

MIAOTANGMOKE: Inspiring consumers' confidence and expectations are what is necessary for stimulating consumption, instead of the government's micro-control. Why not adopt measures such as increasing salaries, cutting personal income tax, raising subsistence allowances and so on?

TIAN_MIKE: It's like a reproduction of the policies implemented in 2008.

All the information is from Sina Weibo.

(China Daily 06/05/2012 page14)