Xinhua, Guangdong November 16 (Xinhua Wang Panmeng Na) the global economic slowdown reduces demand for Chinese exports. As a major manufacturing base, has been hailed as "world factory" in Dongguan City, Guangdong Province, is always focused on the recent media spotlight, public concern about how the global financial crisis influence on how much business here.
Is leading the implementation of a set of economic support to local enterprises in Dongguan Municipal Party Committee Secretary Liu Zhigeng program, said the past two months, people over-exaggerate the local business failures and worker displacement.
He disclosed that from January to September this year, 627 enterprises in Dongguan shut down, accounting for 4.3% of total number of enterprises, involving an amount over 700 million U.S. dollars, the survey shows that most of this year or the closure of small businesses and small workshops. Meanwhile, Dongguan, more than 20 billion dollars foreign investment, into more than that.
He said that Dongguan has a 800-900 year business failures, this is normal.
He believes that the current economic situation is generally stable, Dongguan, 1-September exports up 17.3%, 16.8% fiscal revenue growth. But he also said the financial crisis just beginning to show, the first half of next year than this year's difficulties.
The face of the financial crisis is not yet bottomed out, many local companies began to find ways to overcome the over-reliance on developed markets because of the drawbacks brought - some reduced scale and reduce costs, while others are developing emerging markets and China's domestic market, number of enterprises more heavily in the development of high technology products at even converting.
Dongguan, China in the past 30 years reform and opening-up policy created a microcosm of the economic miracle. In 2007, the Dongguan City GDP value reached 315.1 billion yuan, the export value reached 59 billion U.S. dollars, about 10 million migrants working in local enterprises.
But highly dependent on labor-intensive industries and processing trade are sustained and rapid development of the local economy of the numerous problems, many enterprises lack independent brand and core technology, low value-added products, corporate profit margins thin, the lack of sufficient international competitiveness.
Dongguan New Chenzhi Shen Yi, general manager of manufacturing glasses, said a tsunami, so that these risks are exposed.
The main production of new glasses frame overflow has more than 8,000 employees, is the local optical industry's leading companies. But in the past two months, the companies have felt the chill of the global market downturn bursts.
Chen Zhishen said, some small factories in this industry are "not stand" and shut down, but not the front end of the most difficult period may be the first 3 quarters of next year.
But large companies still have some room to maneuver. Chenzhi Shen said that the new profit is by reducing costs to improve the ability to withstand financial risks. He said the company requires every aspect to be further conserve energy, avoid waste; also links to further improve product design and hope that through these measures will reduce the cost of at least 5%.
Chen Zhishen said: "I and my staff or have the confidence to deal with the international financial crisis the past, after all, we are one of the leading industry and business has no debt. As long as the shuffling process in the industry can stay on there will be more and more opportunities. "
Industry sources, labor-intensive enterprises is not only a passive response to the impact of this road, in fact, with independent R & D capability and brand companies have more room for adjustment.
Be affected more as a leader in one of the toy industry, Dongguan Lung Cheong International Holdings Ltd this year is still expected to achieve 1 billion in sales, essentially flat with last year.
Lung Cheong Leung Chung Ming, Managing Director, said, people thought that the lack of scientific and technological content of toys, the opposite, a lot of money invested enterprises continue to rely on the formation of independent brands, independent technology and independent sales channels, to successfully hedge the risks.
Right now, Lung Cheong has become the largest smart toys, remote control and R & D and production enterprises. In the company's product catalog, one can see that there were 19 joints, more than 200 small robots programmed, and the flexibility to assemble, suitable for use in the primary analog programming of digital mold.
Leung Chung Ming, these results are not obtained overnight. As early as 10 years ago, the company decided to change a single OEM production model, invested heavily in the acquisition of a Japanese company and an American company, the first time the independent technology research and development capabilities and independence of the overseas sales network, thus opening the enterprise to upgrade transition path.
"Over the last two years, our annual funding for technology development are more than 30 million yuan, accounting for about 5% of our sales. Now, we have many universities and national research and development to establish a joint mechanism to greatly expand the product range. "Leung Chung Ming said," so when the global market is affected by shocks, we can introduce new products in a timely manner, thus greatly reducing the losses suffered. "
It is in a strong, driven by strength, Lung Cheong now will put more forces to the expansion of the Chinese domestic market. Leung Chung Ming said the company plans to use 3 years, the proportion of domestic product from the moment of 5% to 20%.
Long-term studies in international trade of Economics, Jinan University, said Professor Liu Dexue, Lung Cheong such enterprises in Dongguan, more like a sample rather than the exception.
He said that in recent years, even the labor-intensive industry is also escalating, many companies have entered from the processing stage of the simple assembly and to continue to extend the upstream and downstream value chain, "The only thing missing is probably the brand in the global market and marketing capabilities of the. "
In fact, some companies are global market downturn as a new opportunity to use it. Knitting Garment Co., Ltd. more general director of Bao Xu Tianliang said, because business is working well enough orders and financial stability, in October, enterprises to increase 40 million yuan, the new lease 2 million square meters of factory buildings, production capacity within the next year will expand more than 30%.
"Now back rent of about 20 years ago level." Xutian Liang said, "good business to be good at 'danger' in search 'machine'."
Many labor-intensive industrial enterprises have also completely changed direction, turned into the capital and technology-intensive industries. Prior to 2007, Dongguan Kingsun Optoelectronic Co., Ltd. The main products is a typical labor-intensive varieties of Christmas lights and other general lighting lamps, Deputy General Manager Zhu Bingzhong that as kind of a serious product, a "Christmas deer "once the price fell from more than 30 U.S. dollars 10 U.S. dollars.
"The urgency of enterprise restructuring pain, and ultimately decided to focus high-power LED light source development products." He said.
Facts have proved that this decision is right - only a year's time, the output value of high-power LED enterprises accounted for half of GDP, an increase of more than 10 times.
Now, the face of financial crisis, the transformation on the ground increasingly accelerated pace: Zhu Bingzhong that businesses continue to increase the LED industry, while construction investment, on the other hand is also increasing efforts to open up the domestic market.
Liu Zhigeng that businesses do not struggle alone, the Government plans to introduce more "rescue" initiatives to encourage labor-intensive enterprises in the financial crisis accelerated the pace of upgrading and restructuring.
He said: "We are already mentally prepared for this, but the adjustment of industrial structure is a difficult process."
Currently, Dongguan plans in the previous local business tax relief on the basis of 3.6 billion, 400 million yuan and then relief, in addition, local authorities also set up a total of 10 billion yuan of industrial restructuring fund to give support to enterprises; establish a 1 billion yuan fund to help companies finance.
Liu Zhigeng said: "Although not the most difficult time coming, but we are convinced that in Dongguan, the financial crisis has an influence, but not beating."
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