India is giving hard time to Chinese manufacturing! This report suggests so

India is giving China a major competition in manufacturing sector and the Dragon nation is feeling the pinch.

In an article in China’s state-run media, Global Times, it is stated that China’s low-end manufacturing sector is facing hard times as some multinationals move production from there to other Asian countries, India included.

The article titled- 'China should reduce production costs for manufacturers as competition with India grows'-, stated the Chinese government’s view.

"The increasing competition from India raises a tough question for China's manufacturing sector of how to keep its competitive edge at a time when the nation's labor cost advantage is shrinking rapidly. Now it is time for China to map out concrete measures to reduce production costs for manufacturers," the article stated.

The article in Global Times also suggested ways of handling the pressure, such as reforming the country's "overheated real estate market".
Apparently, big plans to build new manufacturing plants in China's coastal cities have proven costly because of high real estate prices.

"In this regard, the Chinese economy has to reduce its reliance on real estate and strive to create a favorable investment environment for manufacturers. Additionally, as some foreign-backed companies show an increasing interest in India over China, the country should promote the development of its local manufacturers and encourage them to build plants in less-developed central and western regions where labor costs are relatively lower," the article stated.

However, the article did not predict doom’s day for China's manufacturing.