The Chinese manufacturing industry remains uncompetitive as evidenced by the following: (1) Weak capacity for technology innovation. According to some survey, China owned only 60 percent of the 104 key technologies used in the production of color TV sets, only 50 percent of the 65 key technologies needed for mobile phone production, and 15.8 percent of the 57 key technologies required for DVD production.
(2) Lack of self-developed brand names. China processes products for many famous foreign brands. 53 percent of the exporters are foreign-invested enterprises, which account for 60 percent of China’s total export value. (3) Huge discrepancies exist in terms of management, marketing strategy and the building of modern corporate system compared with the foreign multinational companies.