According to news from China Daily, China’s CSR Zhuzhou Electric Locomotive has signed up a selling contract of 10 bullet trains with Malaysia. These trains will service on a 900 km railway. In 2010, this company has already provided 38 trains to Malaysia. It is the first time that trains made in China are exported to foreign country. From this report, we can easily figure out that made-in- China product become more and more competitive.

From my point of view, it is interaction of reasons listed below that lead this feature. Above all, the most obvious strong point of product made in China is lower price. Since labor is cheaper in China than other country, cost of making a train is much lower. It follows that Chinese company can sell them in an appealing price. In addition, technology turns into strength of Chinese companies. Domestic bullet trains service on different railway in China, improving efficiency as well as reducing danger. This is the best prove of its high technology.

The increasing quantity of exported train is an encouragement to Chinese company, in the same time, is a challenge too. As labor price is growing now, the benefit brought by demographic dividend is disappearing. I think that Chinese companies should take immediate action to focusing on developing technology, making it become our core competitive power.