The Collapse Of The Yangtze River Delta Manufacturers And Government Enterprises Jointly Drive "Bear".

In addition to their own efforts to adapt to the environment, timely and reasonable responses from the central government to local governments at all levels will help reduce the short-term impact of enterprises and local economies and minimize the cost of pformation.

A year ago, Huang Fajing, chairman of the Wenzhou sun Feng Group, known as China's "lighter king", probably didn't realize that now he is worried about the "flameout" of the booming industry.

In Wenzhou, the development of low tide is not only a lighter industry, but also a large number of enterprises in clothing, shoemaking, textile and other industries.

And the trend of manufacturers' cut-off or closure has spread to other parts of the Yangtze River Delta which are highly concentrated by private manufacturing enterprises.

However, business circles have pointed out that in the medium to long term, the survival crisis of small and medium-sized manufacturing enterprises in Jiangsu and Zhejiang provinces in recent two years may be just a sudden "cold fever" in the Yangtze River Delta region in the process of industrial pformation, which will not cause a devastating blow to the local private economy.

Every plan for enterprises to "survive winter"

"During the 30 years of reform and opening up, the wealth and business experience and risk bearing capacity of Zhejiang merchants have far exceeded people's imagination," said Zhou Dewen, President of the Wenzhou SME Development Association. "Only about about 500000000000 Yuan of idle capital in Wenzhou can guarantee that many enterprises that need it are not short of money."

But the damage to some pillar industries and the fear of more businesses and investors can not be ignored.

It is said that some large enterprises which had no direct relationship with the crisis were also involved in the vortex because of the divestment of small and medium-sized shareholders.

Huang Fajing's RI Feng group can be regarded as one of the "implicated" enterprises.

Huang once was an economic figure selected by CCTV in 2003. He worked closely with the world's "lighter king" Zippo, and he gained a lot of export OEM business.

But in the past year, he has served as vice chairman of the Wenzhou smoking Association's 600 member enterprises. The number of "sudden deaths" caused by operating losses is as high as 60%.

In other words, there is an average daily failure of a lighter enterprise.

Today, the Japanese group is also in a difficult position to survive.

In July 7th, Li Keqiang, vice premier of the State Council, who visited Wenzhou, visited the factory of the sun Feng Group. The attention and encouragement of the central high level made Huang Fajing feel a lot of comfort.

He is also trying to adopt a flexible sales strategy, hoping to lead the company through difficulties.

For example, in order to cope with the export pressure brought by the appreciation of the renminbi, he has set two countermeasures: first, negotiating with the merchants half the risk of price fluctuation; and two, using the euro settlement to allow buyers and sellers to disperse some risks.

Zhou Dong, Deputy Secretary General of Jiangyin Youth Chamber of Commerce in Jiangsu Province, said that in the face of the crisis, private enterprises in the city chose more private financing channels, and even pawn to raise funds as a pition. Some enterprises tried to employ part-time workers to minimize production costs.

The government should make moves when it comes out.

"Under normal circumstances," the enterprise manages the cow, the government controls the bear ".

Huang Jiangwei, a well-known Zhejiang businessman research expert, said.

That is to say, when China's governments at all levels are more involved in economic activities, when the market is in good condition, if the enterprises strive to make money and the market environment is not good, the government will try to save the market.

Although there is no clear data, the collapse of the turbulent economy has devastating the economy of the Yangtze River Delta region, but its "delayed effect" still has to be taken care of.

Cixi, Ningbo, Zhejiang, has always been the mainstay of small household electrical appliances production. This year, the industry has been hit hard.

A local company responsible for the export of small household electrical appliances told reporters that more than 70% of the county's manufacturers did not get any overseas orders this year, and many enterprises had to start dismissing workers.

In April of this year, after the capital chain breaking of the leading enterprises and famous sewing machine manufacturers in Taizhou, Zhejiang, the sewing machine industry in the whole Taizhou area suffered large losses. According to local industry associations, this will increase Taizhou's GDP growth rate by 14.5% last year. The GDP growth rate this year will be reduced by at least two percentage points.

Zhou Dewen believes that the large enterprises in Wenzhou and even Zhejiang province are not the main force to promote local economic growth. The bottom of the economic "Pyramid" is actually supported by numerous small and medium-sized enterprises. They ease the pressure of employment everywhere, and the taxes they pay are also the main source of income for most of the grass-roots governments.

He believes that the "prescription" of the manufacturing industry in the Yangtze River Delta should be: the central government supports the policy, and the local governments help them in practical difficulties.

The support of local governments is most important.

"The central government is far away from the place and is not familiar with the situation, and the enterprises themselves are more confused. At this time, the role of the local government is indispensable."

He said.

An official of the Wenzhou municipal government has revealed that the city has designated this year as a "government enterprise linkage service year" to solve the plight of local enterprises. The municipal government will adopt a relaxed policy in the aspects of the approval and approval of new investment projects, and provide technical and personnel support as far as possible.

"We will take the lead in the financing problem that enterprises are most concerned about."

The official stressed.

Huang Fajing suggested that the government should first appropriately adjust taxes to lighten the burden of enterprises, followed by the macro-control policies "flexible and less controlled".

"When implementing the labor contract law, it is possible to make necessary amendments to the tilt of the original emphasis on protecting workers' rights and interests so as to give full consideration to the common interests of both employers and employees."

He added.

Structural adjustment will follow the trend.

But the reporter noted in the interview that some local governments are not unconditionally helping the difficult enterprises, but rather have some choices.

Recently, a large number of chemical plants have been closed in the South of Jiangsu area of Jiangsu, some of which are bankrupt due to shortage of funds, and more are closed by the local government.

A leader in a chemical plant in Wuxi is facing a dilemma. He complained that the attitude of the government has changed and no policy has been given. It is difficult to borrow money from local banks.

"This business failure is not all bad. Good companies can stay, and bad ones will be eliminated."

Sun Zhiliang, vice chairman of the Wuxi municipal CPPCC Committee, said.

Over the years, sun has been the head of the city's pollution control in Taihu.

According to him, 503 chemical plants were shut down in Wuxi last year, up to 269 this year.

"The target of the government's assistance is low energy consumption and high return enterprises, and the polluters are not listed here. They should not be soft hearted."

Sun Zhiliang said.

In Ningbo, Zhejiang, the municipal government recently launched a new evaluation plan for local enterprises, which will be graded according to the profits and taxes, growth, energy consumption, pollution and other aspects of the enterprise.

Huang Jiangwei believes that this reflects the pformation of the overall economic development of local governments. Besides paying more attention to the economic and social benefits of enterprises, it is also one of their goals to take the opportunity to eliminate backward production capacity and upgrade industrial structure.