Analysis of Plastic Mould Industry in 2021 in China

 Current Situation, dilemma, prospect, and trend

       As an industrial supporting facility, its development level is affected by the development of automobiles, electronics, aerospace, military industry, medical care, and other building industries. Data show that in 2019, the sales revenue of enterprises above the designated size of China's plastic injection mold industry reached 272. 7 billion yuan. The China Business Industry Research Institute predicted that the sales revenue of enterprises above the designated size of China's injection mold industry will reach 281. 6 billion yuan in 2020. 

I. Development status of the mold industry

In recent years, the mold industry through technology introduction, digestion and absorption, and re-innovation, the professional production capacity of mold enterprises has been greatly enhanced, the modern mold industry system has been basically formed, and the industry has achieved leap-forward development. The manufacturing technology of mold products has reached or is close to the international level, the quality is more reliable, and the international competitiveness has been significantly enhanced. China mold occupies an increasingly more important position in the international procurement pattern. Data show that in 2019, China's mold export amount reached USD 6. 246 billion, and in 2019 it was USD 1. 939 billion, down 9.37%. 

Among all the mold types, the plastic and rubber mold is the largest mold import and export variety in China. Data show that in 2019, China's plastic and rubber molds export amount reached USD 3. 967 billion, accounting for more than 60% of the total import and export of molds in the same period, reflecting the strong competitiveness of China's automobile molds and home appliance mold products in the world. The import amount of plastic rubber molds is the US $ 870 million, accounting for more than 44.89% of the total import amount of molds, indicating that there is still a large import replacement space for plastic rubber molds in China. 

II. Development dilemma of the mold industry

1、Shorshortage of professionals

The mold talent training cycle is long, and the lack of industry technical management talents, especially high-end talents, restricts the development of the industry to a certain extent. Generally speaking, training an excellent mold engineer requires several years of professional training and practical experience accumulation. China's mold industry started late, and there is a relatively short of professional skilled talents and management talents, which can not well meet the market demand and limit the rapid development of the industry. 

2、 product standard lag affects the industry development

China's national standards and industrial standards system of mold products need to be improved, the international influence is insufficient, and the formulation and revision of some product standards lag behind to a certain extent, which is not conducive to the sustainable and healthy development of the industry. Due to the lack of product standards or outdated standards, the role of the standard system in standardizing the market, promoting technological progress and product development is limited, and it has failed to guide enterprises to produce complete kinds and excellent quality products, leading to disorderly competition, leading to overcapacity in middle and low - end molds, and high - end molds still need to be imported. 

Low degree of the professional division.

3、Low degree of specialization

The mold production process is complex, long production cycle, mold enterprises tend in order to pursue scale, adopt wide coverage development strategy, from process design to research and development, from processing to assembly test mold, although integrated production helps to improve the control of the product, but reduce the level of division of labor and cooperation, and the loss of production efficiency is not conducive to the improvement of technology and product quality. Focusing on inter-bank competition and the lack of horizontal cooperation mode will cause repeated investment, and eventually lead to China's large but weak mold industry and the lack of international competitiveness. 

World Bank, China's economy may increase 7.9% in 2021

 On September 29, the World Bank released its October 2020 semi-annual report on East Asia and the Pacific: from containment to recovery, with China's economy expected to grow 7.9 percent by 2021.

The report notes that the new crown pneumonia epidemic has had a triple impact on developing economies in the East Asia Pacific region: the pandemic itself, the impact of preventive measures on the economy, and the impact of the crisis on the global economic recession. Rapid action was needed to ensure that the pandemic did not affect economic growth and increase poverty in the coming years.

The report states that some countries have so far effectively curbed the spread of the virus and that domestic economic activity has gradually recovered. But Asia-Pacific economies depend heavily on the rest of the world, and global demand remains weak. The region is expected to grow by only 0.9 percent in 2020, the lowest rate since 1967. China is expected to grow by 2.0% by 2020, with government spending, strong exports and low new infection rates helping. Other countries in the Asia-Pacific region are expected to shrink by 3.5 percent.

The report also said that the Asia-Pacific region's prospects for 2021 are brighter, based on the assumption of sustained recovery and normalization of economic activity in major economies, and linked to the possible availability of vaccines, China is expected to grow by 7.9 percent and other economies in the region by 5.1 percent. However, the output is expected to be well below pre-popular projections over the next two years. The outlook is particularly acute for some of the more exposed Pacific island countries, whose output is expected to be about 10 percent below pre-crisis levels by 2021.

The report predicts that poverty will rise for the first time in 20 years in the Asia-Pacific region: as many as 38 million people are expected to remain poor or return to poverty as a result of the pandemic (according to the upper-middle-income poverty standard of $5.5 per day).

 The World Bank's Vice-President for East Asia and the Pacific, Victoria Kwa, said:" The new crown pneumonia epidemic not only hit the poor the most but also created a group of' new poor'. The Asia-Pacific region faces unprecedented challenges and governments face difficult choices. But there are also sensible policy options available that can reduce these trade-offs, such as investing in better detection and tracking capabilities and continuously expanding social protection to include the poor and the informal sector ."

 The report warns that without simultaneous action on multiple fronts, the pandemic could cut regional growth by one percentage point per year over the next 10 years, with poor households most affected by less access to health, education, employment and financial services.

 A huge fiscal deficit in the Asia-Pacific region by 2020 is projected to increase government debt by an average of 7 percent GDP. The report calls for fiscal reform to mobilize revenue by increasing progressive taxes and reducing wasteful spending. In some countries, the stock of outstanding debt may have reached unsustainable levels, requiring greater external support.

 "Many Asia-Pacific countries have managed to contain the epidemic and provide relief, but efforts are needed to achieve recovery and growth," said Aditya Matu, the World Bank's chief economist for East Asia and the Pacific. Current priorities should be the safe return to human capital; the expansion of a narrow tax base to avoid cuts in public investment; and the reform of protected services to take advantage of emerging digital opportunities ."

China is now facing decoupling from the U.S. economy, a small mold company we can't control. As an export-oriented manufacturing enterprise, all we can do is to improve our ability. When the global trading environment gets warmer, if we are still alive, it is successful.