Manufacturing faces a crisis of pricing power

Hu Hongwei, a professor at the Chinese University of Hong Kong, said yesterday that China's crisis was actually a manufacturing crisis in the world financial crisis, and that China's manufacturing sector might also face a war on pricing rights for money and raw materials. Lang-ping in yesterday's "Century Management Masters Hall" said, China's manufacturing industry because of the loss of product pricing rights, so that the profit is too low, resulting in a large number of real economic capital of the manufacturing sector exit, these should be put into the real economy, into the property market, the stock market, spawned 2006 years of property market, stock market bubbles. He said the domestic economy, in addition to the deterioration of the manufacturing investment environment, followed by overcapacity.　　Lang said that the financial crisis until now, the manufacturing industry bargaining power has not improved, and in the post-crisis still face a new pricing power crisis. Earlier this month, the statistics bureau disclosed that China's manufacturing purchasing Managers ' Index (PMI) was 53.9% last December, down 1.3% from last month. The index has risen for 4 consecutive months since last August, falling back in the last one months of 2010.