Chinese one yuan coins and 100 yuan banknotes are seen in Beijing, in this file picture illustration taken Dec 30, 2010. [Photo/Agencies]

China has been rated as the world's most competitive manufacturing market, according to a report from global accounting firm Deloitte Touche Tohmatsu Limited, and the US Council on Competitiveness.

The 2013 Global Manufacturing Competitiveness Index is based on an in-depth analysis of survey responses from more than 550 chief executive officers (CEOs) and senior leaders of manufacturing companies from around the world.

Rosa Yang, co-leader of the manufacturing industry group at Deloitte China, said the country's leadership status in manufacturing competitiveness is expected to remain for the next couple of years.

"The competitiveness is bolstered by a conducive policy environment either encouraging or directly funding investments in science and technology, employee education and infrastructure development," she added.

The report acknowledges that the landscape for competitive manufacturing is in the midst of a massive power shift, in which 20th-century manufacturing stalwarts like the US, Germany and Japan will be challenged to maintain their competitive edge to emerging nations, including China.

Ricky Tung, another co-leader of the manufacturing group at Deloitte China, said "in addition to supportive policies, China still has relatively lower labor costs and is above average in the attractiveness of its corporate tax rates" .

"With its focused efforts to localize supply chains and create innovation hubs, China is also seen by CEOs as the only emerging nation offering the same supplier network advantages as developed nations."