The Transfer of Die Casting Industry in the New International Environment

In recent years, with the gradual loss of China's labor cost advantage, Southeast Asian and South Asian countries and regions have become the recipients of China's new round of die casting industry transfer. According to statistics from relevant departments, the ten ASEAN countries and regions represented by Thailand, Vietnam, Malaysia, and India have always been the main recipients of manufacturing transfer in China. However, this location is not a long-term stable existence and will continue to be one of the important locations for the transfer of China's manufacturing industry in the future.

Industry Overview

In recent years, with the increasing demand for lightweight in industries such as automobiles and consumer electronics, the development of the die-casting industry has also shown the following characteristics:

Industry development status

Although the die-casting industry in China has been developing rapidly since the 1980s, it has gradually entered a trough period after entering the 21st century due to multiple factors such as macroeconomic situation and national policies. During the decade from 2010 to 2018, the overall capacity utilization rate of China's die-casting industry showed a downward trend, from 86% in 2010 to 60% in 2018. The overall capacity utilization rate of the industry in 2019 was 68.5%, a decrease of 4.2 percentage points compared to the previous year.

At present, China has become the world's largest producer and exporter of die-casting. According to statistics from relevant departments, the production of die castings in China in 2019 was 93.7 million tons, an increase of 4.5% compared to the previous year; The import volume was 14.1 billion US dollars, an increase of 12.3% compared to the previous year.

Basic information of the enterprise

At present, the main gathering places for Chinese die-casting enterprises include Guangdong, Zhejiang, Jiangsu, Shanghai, Shandong, Henan, Sichuan, Hebei, and other places. According to statistical data from relevant departments, the number of die-casting enterprises in China in 2019 was 6552, including 1590 in Guangdong Province, 1281 in Zhejiang Province, and 1014 in Jiangsu Province.

In terms of scale, Guangdong Province had the largest number of die-casting enterprises in 2019, reaching 3560; Next is Zhejiang (2540); And the third ranked one is Jiangsu (2130).

From the distribution of enterprise numbers, Guangdong and Zhejiang provinces have the highest number of die-casting enterprises; Next is Jiangsu (2530); Shandong (1761) and Henan (1610) followed closely behind. The top ten die-casting enterprises account for more than half of the number of die-casting enterprises in Guangdong and Zhejiang.

Analysis of development prospects

From the above analysis, it can be seen that in recent years, under the influence of the international situation and policies, Southeast Asian countries and regions have become the main recipients of China's manufacturing industry transfer. And with the continuous intensification of economic globalization and international market competition, these countries and regions will become new growth points for the global economy. At present, although our country's manufacturing industry development level is at the forefront of the world, with the adjustment of China's industrial structure, some labor-intensive industries are gradually shifting to Southeast Asian countries and regions. Among them, the die-casting industry, as an important component of the manufacturing industry, is facing a new round of industrial transfer.

Conclusion and suggestions

Based on the above analysis, the ten ASEAN countries and regions, as important destinations for the transfer of China's die-casting industry, will continue to be one of the main destinations for the transfer of China's manufacturing industry in the future, but this destination will not exist stably for a long time. So in the future, we should make reasonable use of the abundant labor resources, natural resources, and market demand of ASEAN countries and regions.