[Text/Financial News Network Yugui] Recently, the news that China's electric blankets were bought by Europe have frequently become popular.
You will know after a little bit of knowledge that this is a product of energy shortage in Europe.
But in fact, the European energy crisis also brings a more important issue that concerns your and my vital interests, which is exactly ignored by many people.
means that European high-tech industries are transferred to China.
Foreign investment in high-tech manufacturing increased by 43.1%
According to data from the Ministry of Commerce, from January to August 2022, China's actual use of foreign investment increased by 20% year-on-year, and the actual use of foreign investment in high-tech industries increased by 33.6% year-on-year, more than twice the growth rate of China's overall foreign investment absorption during the same period. The most prominent one is the high-tech manufacturing industry, with a full growth of 43.1%.
This investment is not a sweatshop like Foxconn in the past, but a real high-tech industry.
This is a bit strange. In recent years, there have been so many actions in the West to suppress China's economic development, including tariffs, sanctions, and transfer industries to Southeast Asia. Under such circumstances, will they transfer high-tech industries to China?
But the truth is, this really happened. This is easy to verify. If we search for foreign investment in China this year, we can find direct data on the official websites of major companies.
For example, on July 19, German time, German chemical giant BASF said it will comprehensively promote its integrated base project in Zhanjiang City, Guangdong Province, China. This is BASF's largest investment project in the world. By 2030, BASF expects to invest up to 10 billion euros in the project.
and BMW Group, which officially opened on June 23, a large-scale upgrade project (Rida Factory) at its Shenyang production base. The project invested 15 billion yuan, which is the largest single investment of BMW in the Chinese market so far.
In addition, a number of high-tech foreign companies such as Germany Merck Group, Swiss Inex , European Airbus , France's Dorda, Spain's Danobad, German auto parts manufacturer ZF, and other high-tech foreign companies have reached cooperation with domestic cities and announced huge investments.
Foreign governments are not unopposed. For example, German Chancellor Scholz once said: "Reduce dependence on China." Germany also took practical actions. In June this year, Volkswagen's investment application for China was rejected by the German government, but Volkswagen's attitude was: Even if the German government refuses to guarantee, it will set up a factory in Xinjiang, China.
The energy crisis has led to industrial migration
Why do they also increase investment in China despite the opposition of their government? The most important reason is naturally the energy crisis.
In Europe, the energy price has reached an extremely exaggerated level. For example, some time ago, a business owner in southern Italy exposed his energy bill, which was only 120,000 euros in July 2021. By this year, the bill soared to 979,000 euros in July, nearly 8 times.
What is even more unlucky is some energy-intensive companies. Not to mention profitability, the more they produce, the more they lose. In August this year, the cost of producing electrolytic aluminum in Germany reached US$4,200/ton, while the price of aluminum futures at that time was only US$2,300/ton, which means that the cost price is already twice the selling price. What else can I produce?
Any manufacturing industry cannot do without energy and electricity. It is not only an energy-intensive industry. We remember that high-tech manufacturing industries such as chips also rely very much on power resources. The higher the high-tech and advanced processes, the greater the power consumption. It can be said that energy shortages have strangled the throat of European manufacturing.
The European government has actually introduced some subsidy policies for high-energy-consuming enterprises, but it is only temporarily "quenching thirst". As long as the relationship between Europe and Russia remains unchanged, the energy crisis in Europe may continue.
Then EU can the relationship between Russia be good? The explosion of the Nord Stream pipeline seemed to tell us the answer a few days ago.
Under this background, can you understand the industrial migration of European companies? As for where to move, looking around the world, considering factors such as costs, industrial supporting facilities, talents, etc., the United States has high manpower, India has poor industrial supporting facilities, Southeast Asia has few talents, and other places have various problems, so China has become the only choice for European manufacturing industry to move out.
is not that good, nor is it that bad
After understanding the above information, some people may still complain: "It seems good, but the situation around me is getting worse and worse."
is indeed the case for most people. Since 2020, the repeated epidemic situation, slowing economic growth, collapse of the education and training industry, real estate storm, and various negative news have made the saying "A grain of gray of the times falls on individuals and is a mountain" frequently flooded the Internet. It is an indisputable fact that the overall environment is not as good as before.
But at the same time, the wealth-making craze in new energy-related industries is in full swing.
According to the statistics of Tonghuashun iFind and calculated based on the direct shareholding market value of the chairman of a listed company, as of July 24 this year, there were nearly 20 chairman of the new energy industry chain with a shareholding market value of more than 10 billion yuan.
