Two major developments that took place earlier this year are expected to have far-reaching implications for the global manufacturing sector, and particularly in China. At first glance, they appear to be rather innocuous economic predictions. But a closer look reveals that while the global manufacturing industry is tottering, China is still proving to be the lifeline for many global companies.

The 2013 Global Manufacturing Competitiveness Index prepared by global professional service firm Deloitte Touche Tohmatsu Ltd and the US Council on Competitiveness, released in January, indicates that China is not only the most competitive manufacturing nation in the world presently, but will continue to retain that ranking for the next five years.

However, that does not mean that everything is hunky-dory in China, as its relatively strong manufacturing edifice is facing severe challenges such as a sharp decline in the absolute working-age population.

Ma Jiantang, the National Bureau of Statistics chief, had earlier in January indicated that though China's labor force had declined by 3.45 million last year to 937 million, it still continued to be the nation's "biggest resource advantage".