7. Mergers among traditional manufacturers predicted

Traditional Chinese manufacturers are losing their original appeal, as labor costs increases. Deloitte expects strong market contenders to enhance their investments on automation and push up productivity.

High-quality production will be the key, said the report, adding that the Internet-driven reform could be a life or death challenge to the manufacturers, driving them to focus on innovation and customer services.

A worker sews shoes at a factory in Jinjiang city, Fujian province, Mar 30, 2015. [Photo/IC]