The manufacturing industry in the Pearl River Delta originated from simple processing and manufacturing in the 1970s, and now the manufacturing industry is mainly concentrated in the textile, household appliances and electronics industries. The development of manufacturing industry in the Yangtze River Delta accelerated in the 1990s, and its industrial structure was higher than that in the Pearl River Delta, mainly concentrated in the electronic information industry. The development momentum of the Yangtze River Delta is obviously better than that of the Pearl River Delta. The main reason is that the Yangtze River Delta has high-tech talents and high-quality labor resources. The motive force for the rapid development of manufacturing industry in the export-oriented southeast coastal areas mainly lies in the opening-up strategy and the establishment of regional export-oriented economic model. Compared with other parts of the country, the export-oriented degree of manufacturing industry in the southeast coast is relatively high. However, the manufacturing industry in the Yangtze River Delta was born out of the traditional industries in the region, and the manufacturing industry has a relatively complete industrial chain compared with the Pearl River Delta. Therefore, the extroversion of manufacturing industry in the Yangtze River Delta is lower than that in the Pearl River Delta. Since the reform and opening up, the dependence on foreign trade of manufacturing industries in the two places has been rising, but the dependence index of foreign trade in the Pearl River Delta has been much higher than that in the Yangtze River Delta. There are two reasons behind this phenomenon. First, compared with the Pearl River Delta, the intermediate products used in manufacturing in the Yangtze River Delta come from China, and the number of imported intermediate products is relatively small, which has certain independence. Secondly, the sales of products produced by the manufacturing industry in the Yangtze River Delta are less dependent on the external market than those in the Pearl River Delta, and its production is less affected by the external market than that in the Pearl River Delta region. At the same time, the proportion of manufacturing foreign direct investment in fixed assets investment, which reflects the degree of regional extroversion, has been higher in the Pearl River Delta than in the Yangtze River Delta. Although the gap between the two regions has narrowed in recent years, there is still a relatively stable difference. This shows that the source of manufacturing investment in the Pearl River Delta depends on the inflow of foreign capital in the form of FDI. When foreign capital inflows decrease or even withdraw, local manufacturing production is more vulnerable. Degree of specialization In the process of manufacturing industry development, the Yangtze River Delta region is based on local traditional manufacturing industry, undertakes foreign industrial transfer, and carries out industrial layout and system construction. However, the Pearl River Delta region mainly accepts the transfer of foreign industries by "airborne", and rarely effectively grafts with the local historical industrial base. Therefore, compared with the Pearl River Delta manufacturing industry, the Yangtze River Delta manufacturing industry has obvious "diversity", while the Pearl River Delta manufacturing industry has a higher degree of specialization. The high degree of regional specialization also means that the manufacturing industry in the Pearl River Delta region is highly concentrated, and the manufacturing industry as a whole has a strong "singularity" (such as too much concentration in labor-intensive processing trade industries such as clothing, toys and light industry). Therefore, when the external market changes, compared with the Yangtze River Delta, the manufacturing industry in the Pearl River Delta region lacks the choice of diversified industries, and the impact will be greater. The economic dependence of the southeast coastal areas is higher than the national level. At the micro level, the number of foreign-funded enterprises is increasing, and foreign-funded enterprises have become an important driving force for regional economic development. However, there are obvious differences in industrial development models between the two regions. The Yangtze River Delta is dominated by the government operation mode of enterprise endogenous growth and planned management. For example, the "Sunan Model" and "Wenzhou Model" formed in 1980s, the development and opening-up of Shanghai Pudong after 1990s, the industrial agglomeration of Jiangsu Development Zone and the "block economy" of Zhejiang have promoted the rapid economic development in the Yangtze River Delta region and laid the center of gravity of the Yangtze River Delta manufacturing industry in China and even the world. The Pearl River Delta, on the other hand, is an exogenous development model led by foreign-funded enterprises, which is characterized by taking advantage of its proximity to Hong Kong and Macao to form a "front shop and back factory" layout, and forming a light industry base by undertaking international industrial transfer in the middle and late 1990s. The manufacturing industry in the Pearl River Delta has almost completely joined the supply chain of multinational companies and become an important part of its production system. In the form of OEM, financial leasing, overseas listing, etc., it conforms to the trend of multinational companies' manufacturing industry shifting to China, and the outward orientation of enterprises is deepening. The challenges are similar. At present, the development of manufacturing industry in the southeast coastal areas of China is facing unprecedented difficulties, which are caused by changes in external environment and deep-seated industrial structure problems, but in summary, there are four direct factors. Production costs continue to rise. With the sustained and rapid development of manufacturing industry driving up the cost of labor, capital, land and other factors, the national industrial policy indirectly pushes up the production cost, and the production and operation costs of southeast coastal enterprises begin to rise, which is beyond the range of their profits. These cost factors specifically include: rising labor costs. At present, the "turning point" of supply and demand of rural surplus labor force is approaching. Although the overall supply exceeds demand, there is an imbalance between supply and demand in some areas, and it is difficult for enterprises to recruit needed employees at the original low wage level. The newly implemented Labor Contract Law stipulates compulsory withdrawal of social security, holiday compensation, raising the minimum wage in various places, and not arbitrarily dismissing employees with low labor efficiency. All these mean that the labor cost of enterprises has begun to increase. Land price and land use tax increase, and land use cost increases. The state strictly controls the supply of construction land, and the gap between land supply and land demand increases, and demand has a powerful force to push up land prices. The cancellation of the agreement to sell land, the bidding, auction and hanging of land for industrial and other types of enterprises, the oligopoly of supply and the competition of multiple demands have also caused the continuous rise of land prices. After decades of development in the southeast coastal areas, the available land space has been greatly reduced. The cost of capital has gone up. Although the national monetary policy has changed from moderately tight to relatively loose in response to the financial crisis, the current policy is applicable to national key construction projects and large and medium-sized state-owned enterprises. Most private small and medium-sized enterprises still have financing difficulties, and many enterprises have to raise funds from informal channels, which will inevitably affect the capital cost of enterprises, especially those with high debt ratio in the asset structure, resulting in financial expenses greatly squeezing the normal profits of enterprises. The cost of raw materials has gone up. The marketization of resource product prices in China has not been fully put in place. The prices of crude oil and refined oil are upside down, the prices of coal and electricity are upside down, the prices of water resources are low, and the pricing of some mineral resources does not fully reflect the relationship between supply and demand. Although the prices of some resource products are affected by the international market, the costs of energy and raw materials used by enterprises have generally increased substantially. Transportation costs have gone up. Although the traffic situation in China has been greatly improved, the railway capacity is still insufficient, the expressway network is underdeveloped, and the overall oil price tends to rise. Domestic logistics enterprises are too small and scattered, few enterprises apply modern circulation technology, and the circulation efficiency is low. The data shows that the average logistics cost in developed countries is 10%, while that in China is twice as high. The cost of improving and maintaining the environment has gone up. According to the data of State Environmental Protection Bureau, the energy consumption per 10,000 yuan GDP in China is 3 ~ 1 1 times that in developed countries. At present, the carrying capacity of China's ecological environment is close to the limit. Under the pressure of national environmental protection policies, the environmental costs of related enterprises will gradually increase. China's manufacturing industry, represented by the southeast coast, mostly belongs to the low-end link in the world production and trade system, while the developed countries, represented by the United States and Europe, are the leaders and manipulators of the whole trade. The overall growth of China is closely related to its external demand. Therefore, when the consumer market in the United States and Europe changes, it will directly affect China's manufacturing industry, especially the slowdown of American economic growth will lead to a decline in its consumption and import demand, thus directly impacting the development of China's manufacturing industry. The import and export trade in the southeast coastal areas accounts for 2/3 of the total national trade, and its manufacturing export is the main driving force for China's economic growth, while the stability of external market demand is a necessary factor for the development of manufacturing industry in the two regions. If the external market demand slows down and the external economic growth rate drops, the investment and net export in the southeast coastal areas will drop sharply, and the shrinking domestic consumption caused by external economic changes will also reduce the overall scale of the domestic market of manufacturing in the southeast coastal areas, which will deal a double market blow to its manufacturing development to some extent. The labor cost advantage of foreign competitors has begun to appear. In addition to rising manufacturing costs and shrinking consumer market, the reduction of labor costs of foreign competitors has also become an important obstacle to the development of manufacturing industry in the southeast coastal areas of China. Compared with the main competitor countries and regions, the manufacturing labor cost advantage in the southeast coastal areas of China no longer exists or is very weak. Because of this, from 2007, some foreign-funded enterprises in the southeast coastal areas of China began to transfer to Southeast Asia, South Asia and other countries. RMB exchange rate appreciation Due to the world economic recession, the local currency exchange rates of India, Southeast Asian countries and Brazil have entered the depreciation channel. The sharp depreciation of these countries' currencies is in sharp contrast with the steady appreciation of RMB in China, which greatly reduces the price competitiveness of China's export products and adversely affects the export competition of manufacturing industries in the southeast coastal areas. From the above analysis, on the surface, the difficulties encountered by China's southeast coastal manufacturing industry lie in the impact of external demand and the competition of external rivals. But from a deeper perspective, the structural problems of the manufacturing industry in the southeast coastal areas are the fundamental reasons for its predicament. The so-called structural problems are mainly manifested in the excessive dependence on foreign capital for industrial development, the low-end of the global value chain, the lack of technological innovation ability, and the weak ability of sustainable development and impact resistance. Therefore, the manufacturing industry in the southeast coastal areas of China must carry out strategic adjustment and structural transformation, with the goal of developing a modern new manufacturing industry with high technology, high added value, low consumption and low pollution. In view of the differences in manufacturing extroversion, specialization and enterprise nature between the Yangtze River Delta and the Pearl River Delta, it is necessary to consider the industrial development characteristics of different regions and implement different strategic choices when formulating the industrial transformation and upgrading plan for the southeast coastal areas of China, especially to clarify the industrial positioning, identify the upgrading path and strengthen interregional cooperation. Defining the strategic positioning of regional industries The Yangtze River Delta region is the largest comprehensive industrial zone in China, with complete industrial categories and developed light and heavy industries. Not only traditional industries occupy an important position in the country, but also high-tech industries represented by microelectronics and optical fiber communication are outstanding. In recent years, in order to adapt to the changes of international industrial transfer and the new round of domestic economic growth, the Yangtze River Delta region has taken the new manufacturing industry as the key goal of regional industrial development in due course. Shanghai proposes to give priority to the development of advanced manufacturing and modern logistics, Zhejiang to build an advanced manufacturing base and Jiangsu to build an international manufacturing base. The manufacturing industry in the Pearl River Delta is dominated by processing trade, and the products are mostly labor-intensive industries. It has become one of the largest production and export bases of electronic and daily consumer goods in the world. In order to solve the problems of low level, light structure, large extroversion and weak industrial embeddedness of local industries, the Pearl River Delta region has made great efforts to improve the local investment environment and increase the investment of enterprises in R&D, and put forward the industrialization strategy of "moderately giving priority". This adjustment has achieved remarkable results. High-tech industries represented by electronic information and heavy chemical industries such as petrochemicals, steel, motors and special equipment are forming new industrial pillars, and the proportion of heavy industry has exceeded half of the scale. In this context, the industrial orientation of the Yangtze River Delta region can be clearly established as advanced manufacturing and producer services, and the key areas of development are IT industry, equipment manufacturing, finance and insurance, creative design, exhibition consultation, trade circulation and logistics. On the other hand, based on the existing processing industry, the Pearl River Delta region will vigorously develop high-tech industries, enhance its regional embeddedness, realize the "four arrows in one go" of traditional manufacturing, electronic information industry, heavy chemical industry and modern service industry, and build a new and complete industrial system. Find the main path of industrial upgrading. The industries in the Pearl River Delta are exogenous, the development of basic industries is incomplete compared with that in the Yangtze River Delta, and the sources of regional innovation are too dependent on foreign countries. Therefore, the path of industrial upgrading in the Pearl River Delta is mainly to rely on the existing manufacturing base, implement the chain upgrading of manufacturing industry (according to the "smile curve" of industrial value chain, gradually change from low-end links to high-end links), and appropriately promote the upgrading mode of "changing cages for birds" (transferring industries that are not suitable for development to other regions to make room for the development of emerging industries). At present, the Pearl River Delta is still dominated by light processing industry, and the basic industries such as chemical industry and steel are relatively backward. Therefore, it is necessary to develop the upstream industrial sector that matches and supports it, so as to enhance the balance of the industrial sector and the stamina of economic development. Relatively speaking, the industries in the Yangtze River Delta are more dependent on local enterprises, and the overall industrial system is relatively complete, but the industrial structure in the region is similar, and the complementary gradient development advantages have not yet formed. Therefore, the adjustment and transformation of industries in the Yangtze River Delta should focus on optimizing the internal industrial layout and building a development pattern with reasonable regional division of labor and moderate competition. At the same time, strengthen the R&D and innovation ability, strengthen the strategic consciousness of changing from "Made in China" to "Created in China", and upgrade the strong science and technology area to the strategic height of regional development. In addition, it is necessary to further improve the supporting capacity of regional industries, build a modern manufacturing highland, and focus on developing internationally competitive industrial clusters, such as high-tech industrial clusters with electronic information and biopharmaceuticals as the core, and modern equipment manufacturing clusters with large power station equipment, communication equipment, transportation equipment, engineering equipment and petrochemical equipment as the main components. Strengthening regional specialized cooperation based on comparative advantages and implementing regional specialized cooperation is an important path for industrial transformation and upgrading in southeast coastal areas. Regional industrial cooperation in the Yangtze River Delta should focus on developing new manufacturing industries and producer services, improve the degree of regional specialization, and form a multi-level and multi-angle regional division system of modern manufacturing industries. Especially in Shanghai, Nanjing, Hangzhou and other big cities, it is necessary to transfer the general manufacturing industry to the peripheral areas and attract high-tech industries and modern service industries to gather in the city center. The central city should become a manufacturing service center for R&D, design, marketing, brand, information and finance, and the peripheral areas should focus on manufacturing, forming cooperation and interaction between the center and the periphery, and the peripheral cities should also form a differentiated division of labor pattern. The Pearl River Delta region focuses on internal integration and closer ties between Guangdong, Hong Kong and Macao (CEPA). According to the Outline of the Reform and Development Plan for the Pearl River Delta Region (2008-2020) approved by the State Council, it is necessary to optimize the spatial layout, with Guangzhou and Shenzhen as the center and the east and west banks of the Pearl River Estuary as the focus, so as to promote the regional economic integration of the Pearl River Delta. Guangzhou, Shenzhen and other central cities should strengthen the functions of gathering high-end elements, scientific and technological innovation, cultural guidance and comprehensive services, give priority to the development of high-end service industries, and accelerate the construction of advanced manufacturing bases. Further implement the specific measures of CEPA related agreement framework, consolidate Hong Kong's position as an international financial, trade, shipping, logistics, high value-added service center and Macao's position as a world tourism and leisure center, support Hong Kong and Macao enterprises in the Pearl River Delta region to extend their industrial chains, transform into modern service industries and advanced manufacturing industries, and enhance their ability to cope with environmental changes.