Talking about the downward pressure on China’s real economy

At present, China’s industrial production is still in the downstream industry chain, downward pressure still exist, most of the manufacturing enterprises still follow the  “small profits and good sales” mode of production and sales, products added value is not high.Shinestar Steel Research Institute believes that this led directly to the  profit level of industrial enterprises also encounter bottlenecks, such products in China’s labor costs and tax costs rise in the background, but also gradually lost the  price advantage, the lack of sustainable development momentum.
The current executive meeting of the State Council once again stressed the need to promote the upgrading of the real economy, it is necessary to speed up the smooth  movement of the old and new energy, collaborative efforts to promote the real economy covering the Agriculture, industry and service industry to flourish.In recent years,  shinestar group has been actively respond to a nation’s call for upgrading the real economy, produce a lot of high quality products, such as straight seam steel pipe,  galvanized pipe, api 5l steel pipe, welded pipe, seamless steel tube, etc.
Someone said, “made in China always suffer from two disease.”One is the control of the machine and control system can not pass, one is the power system of domestic  equipment does not pass, innovation ability is weak.At the same time, in the case of rising factor costs, China’s manufacturing productivity is low, can not be resolved  by technological progress to increase the high cost.
2016, China’s overall economic growth rate slowed down, the three major trends in the demand for investment slowed down, consumption is stable, the downward trend  of exports, endogenous growth momentum is gradually formed, the industry is facing the bottleneck of the development of structural adjustment.Is expected in 2017  with the shrinking of effective demand, economic downward pressure still exists, resulting in the macro economy may produce the economic downturn and the inflation  rate upward pressure on the coexistence of “stagflation” risk.
In addition, the high cost of industrial production and industrial products will continue to restrict the development of the industrial economy.According to the data  analysis, in 2016 by the overseas and domestic resources, energy, iron and steel, nonferrous metals and other commodities prices, hand driven PPI stabilized, on the  other hand the possibility of future production factor prices generally rise increase, forming pressure on the cost of industrial chain, resulting in weakening demand,  which restricted the sustainable development in the field of industrial economy.
Since 2012, the labor cost advantage of China as the “world factory” is decreasing year by year.In particular, the level of labor wages, with the level of developed  countries gradually.2016 local companies flight situation caused’s emphasis on tax of the enterprise in question, at the same time around the camp to increase further,  the phase of enterprise tax burden is not reduced the problem such as increasing will exist.The future industrial structure adjustment will affect the whole industry  development situation, corporate profits will be in the low post, tax burden of corporate profits stripping will hit production enthusiasm.However, problems have to find  solutions, shinestar group will continue to focus on the development of China industrial economy, combined with their own actual situation to accelerate the  transformation and upgrading.Produce a better straight seam steel pipe, galvanized pipe, api 5l steel pipe, welded pipe, API line pipe manufacturer, injected new  impetus to the development of Chinese economy and vitality.
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About Hunan Prime Steel Pipe Co., Ltd

HUNAN PRIME STEEL PIPE is the export gateway of SHINESTAR HOLDINGS GROUP. We are dedicated in providing and exporting high performance-price ratio welded & seamless steel pipes and fittings covering various steel grades. At Prime Steel Pipe, we believe that honest communication, expertise in our industry, and prompt execution lead to strong long-term relationships. Our professioanl team provides " one-stop procurement" servics to coordinate with your project regulation, site and terrain, and ensure the best quality of products by assigning skillful experts at every stage of production. Our principles is to keep the honesty in mind, to win reputation by trust. We strives to providing quality products, competitive price and value-added services to our clients throughout the world.

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