Ren Wenbing hesitates to depart from the dilapidated brick structure that once housed a bustling factory in Dongguan, China’s manufacturing epicenter.
“All of us workers are stunned,” remarks the 54-year-old, gesturing toward the areas where furniture assembly once thrived and where communal lunches were shared.
The company’s proprietor has relocated production to Southeast Asia in pursuit of cost savings. Mr. Ren reveals he’s owed over 80,000 RMB ($11,000; £8,800) in severance pay, a sum that could take him years to recoup. “We feel let down and mournful,” he laments, as the sound of machinery demolishing windows fills the air.
Yet, Mr. Ren’s lament isn’t solely for the loss of a furniture enterprise. It’s a lament for the bygone era of China’s unstoppable economic growth, now presenting challenges for millions seeking employment. For individuals like him, the “Made in China” ethos feels diminished.
However, while the West criticizes China for overproduction—a sentiment echoed during a recent visit by US Treasury Secretary Janet Yellen—China’s manufacturing status is evolving.
The familiar “Made in China” label, once synonymous with household goods, now finds itself at the forefront of industries like electric vehicles and solar panels, causing unease in Western circles.
Increasing trade tensions with the US, coupled with stringent COVID restrictions and global economic downturns, have prompted some manufacturers to seek alternatives outside Chinese borders.
Consequently, foreign investment in China has dwindled to a three-decade low. Yet, as traditional sectors like furniture, apparel, and electronics falter, Beijing is pivoting toward emerging industries such as solar energy, lithium batteries, and electric vehicles.
At an exhibition featuring numerous green energy storage firms in a renovated steel plant on Beijing’s outskirts, salesperson Yan Mu proudly showcases the company’s battery products.
“Chinese companies are spearheading the energy storage market,” he asserts, highlighting China’s dominance in innovation and technology. Just a few hours’ drive from Dongguan, the magnitude of China’s renewable energy industry becomes evident, with vast fields of solar panels stretching as far as the eye can see.
China’s Green Technological Dominance Sparks Global Concerns
In the past year alone, China has surpassed the United States decade-long solar panel installations, showcasing the prowess of its mass manufacturing capabilities. This surge in production has effectively halved the cost of solar panels compared to the previous year.
Meanwhile, manufacturers across Europe are grappling with fierce competition from Chinese counterparts. In 2023, a staggering 97% of solar panels installed in Europe originated from China, underscoring the dominance of Chinese-made panels in the market.
However, China’s transition to new industries marks a departure from its labor-intensive past. These emerging sectors demand specialized skills and are increasingly reliant on automation, including robotics.
Despite China’s focus on addressing youth unemployment, its urban unemployment rate remains above 5%.
Observers in the US and the European Union view China’s strategy as an attempt to prop up its economy by flooding the global market with low-cost, state-subsidized green technology. They argue that this tactic has driven down prices and forced Western companies out of business.
China, on the other hand, attributes its success to innovation rather than state subsidies. The country contends that there is a genuine global demand for its exports as nations transition away from fossil fuels toward more environmentally friendly energy sources.
Struggles of China’s Migrant Workers in the Wake of Economic Shifts
Mr. Ren finds himself amidst the shifting tides of China’s economic evolution, but he’s unable to secure a foothold in its new landscape.
Departing from his family’s farm in Henan as a teenager, he sought opportunity in Dongguan, the bustling industrial hub of Guangdong province.
Like millions of others, he joined the ranks of migrant workers in search of a better life. Yet, despite years of toil in the city’s factories, he now faces joblessness in the wake of China’s changing economic trajectory.
Leaving behind his family, Mr. Ren endured years of separation, with his children raised by grandparents while he and his wife eked out a living in Dongguan. Their sacrifice was driven by the harsh realities of providing for their loved ones amidst meager wages and mounting expenses.
Now, with factories offering paltry wages and looming uncertainty, he’s left scrolling through job listings in a cramped living space, desperate for a lifeline in a city that was once their beacon of hope.
As Dongguan’s once-thriving manufacturing sector dwindles, its abandoned factories stand as silent witnesses to a bygone era of industrial glory.
Once teeming with workers churning out goods for export, these buildings now lie dormant, reclaimed by nature’s relentless advance. The hum of machinery has given way to the melody of birdsong, a stark testament to the transformative forces reshaping China’s economic terrain.
For Mr. Ren and countless others, the journey of migration and labor has led to an uncertain crossroads, where the echoes of past prosperity mingle with the shadows of an uncertain future.
Dongguan’s Pursuit for Renewal: Embracing the High-Tech Future
Determined not to surrender to economic adversity, Dongguan is charting a course towards rejuvenation, aiming to reclaim its former eminence by pivoting towards high technology.
Along the shores of Songshan Lake, the illustrious tech behemoth Huawei is erecting a sprawling campus poised to accommodate 25,000 employees. Adjacent to this technological marvel, a burgeoning science park and a cluster of hotels herald Dongguan’s ambitious reinvention.
Amidst this transformative status, Alan Lee, a resilient entrepreneur, finds himself seizing opportunities in Dongguan’s new trajectory. Weathering the storm of economic downturn, the 32-year-old entrepreneur has forged ahead with plans to export cutting-edge machinery to Europe.
Recognizing the stark challenges faced by many amid the shifting economic tide, Lee underscores the importance of adaptability, choosing to focus on trade to circumvent the production-related pressures afflicting other ventures.
Yet, the burgeoning high-tech sector demands a workforce equipped with specialized skills—a state in which individuals like Mr. Ren find themselves at a disadvantage.
As hopes for receiving owed compensation dwindle, Mr. Ren grapples with the sobering reality of his circumstances. Contemplating how to elucidate his prolonged absence from his children, he is confronted with the weight of parental responsibility and the desire to provide a brighter future.
Amidst the uncertainties of Dongguan’s economic metamorphosis, Mr. Ren’s reflections echo the aspirations and struggles of countless migrant workers dealing with the shifting tides of China’s industrial terrain.
