Recognize reality and return to rationality in this global game
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At the beginning of the development of China's manufacturing industry, it was basically cut from the low-end. After decades, it is still difficult to get rid of the development model of high investment, high energy consumption, and high emissions, which not only caused great damage and impact on the resources and environment, but also Earning production capacity does not make money, and it creates a deep dependence on international orders and international raw materials.
In fact, the current surge in raw material prices is itself an abnormal market-oriented behavior. Since my country has contained the epidemic first, and my country is the largest manufacturing country, export orders have surged in the past two years, and companies have started operations day and night. But there is a fact that we have to face: China does not have the right to price upstream raw materials. On the one hand, orders were smashed madly, and on the other hand, orders were received but no money was made. The entire industry chain was busy with production, but profits were shrinking. In addition to coal, my country basically relies on imports for other resources, so it seems that exports have surged, but in fact it has not made much money. The foreign exchange earned by large-scale exports has also become worthless due to the release of water by the United States. In fact, the most profitable is the capital giant led by the United States, which makes a lot of money through capital control of commodity futures.
At present, we need to remain calm, return to rationality, and see that the surge in orders is only a temporary phenomenon, not a sustainable one. In the face of the reality of the global economic recession, we must not expand by a large margin regardless of the consequences due to the special needs of the current international situation. Low-end cheap production capacity.
Once the foreign epidemic is over, global production capacity is restored, and orders are reduced, what will the industry face?
On one side is the backlog of finished goods inventory, on the other is the backlog of high-priced raw materials, and in the middle is the expanded production line... Now, it is only a temporary pain at best. At that time, it will be the catastrophe for the entire industry chain.