Analysis Of Anti Risk Ability Of China Textile And Other Foreign Trade Enterprises

In this round of global economic crisis, the number of foreign trade enterprises in South of Jiangsu, Jiangsu was much lower than that in Zhejiang and Guangdong.

However, the vitality of Zhejiang's foreign trade private enterprises in developing new markets has allowed foreign investors to coerce Jiangsu and Guangdong.

The foreign capital and private capital of China's foreign trade need complementary "short board" to usher in a phalanx to change.

China's coastal provinces with different industrial structure and different development strategies differ greatly in their ability to resist risks in foreign trade in the financial crisis.

The extensive extension economy of South of Jiangsu's foreign enterprises, and the endogenous open economy dominated by private enterprises in Zhejiang, and the foreign enterprises and private enterprises formed in some parts of Guangdong to a certain degree of mixed type open economy, provide fresh samples for the study of the adjustment of the foreign trade structure.

This reporter has investigated the most representative Guangdong, Jiangsu and Zhejiang provinces in China's coastal economic belt, which occupy 26.7%, 15.3% and 8.2% of the scale of China's foreign trade respectively. Shanghai ranks third in the foreign trade of the whole country. However, due to the fact that there are more export trade components in Shanghai's trade structure, it has not been included in the study of foreign trade performance in the financial crisis, and explores the industrial structure and industrial upgrading path behind its three aspects.

An interesting phenomenon is that the higher the degree of openness, the stronger the ability to resist the financial crisis.

An intuitive example is that the number of enterprises in South of Jiangsu is mainly less than that in Zhejiang and Guangdong.

And the financial crisis has objectively delayed the pace of foreign enterprises' withdrawal.

But on the other side of the coin, the vitality of private enterprises in developing new markets has made Jiangsu and Guangdong coveted by foreign investment.

The slogan of walking on two legs by foreign capital and private capital has been around for many years, but few people actually realize it in the coastal economic zone.

The path dependence traces and crowding out effects are especially worthy of attention.

The dispute over the development pattern of the outward oriented economy in the Yangtze River Delta and the Pearl River Delta has been going on for years, and this financial crisis is a test and an important node.

In the past years, Li Renxiang, a Taiwanese living in Kunshan, has been helping Taiwanese businesses run various new factories. He is the chairman of Taiwan Hon Bang enterprise management company.

With the outbreak of the financial crisis, Li Renxiang has not received a new factory's business for half a year.

He took the initiative and started to pay attention to the financial crisis, and began to set up business to help Taiwanese businesses shut down factories.

But to his surprise, Taiwanese businessmen recognized that the intensity of the financial crisis was unprecedented, but the number of Taiwan funded enterprises that actually applied for closure was still few.

"Most of the current failures are small and medium-sized Taiwanese funded enterprises with excessive leverage.

Most Taiwan funded enterprises can successfully overcome this difficulty. "

Li Renxiang pondered that although layoffs are common in Taiwanese funded enterprises in Kunshan, Taiwan funded enterprises that failed in the current financial crisis are rare.

Li Hongmei, Minister of computer management department of Ren Bao, told reporters that Taiwanese businessmen in Kunshan were much better affected by the financial crisis than they imagined.

For example, she said, there were no large-scale layoffs, such as Ren Bao, and the upstream and downstream manufacturers rarely heard that the operation was difficult to sustain.

According to statistics from local authorities, there were only 37 enterprises in Kunshan in 2008, including 22 Taiwan funded enterprises, most of which were small and medium-sized supporting enterprises, while Kunshan was the most intensive processing trade in Jiangsu.

In the early December 2008, a high-ranking delegation sent by the Suzhou foreign trade and Economic Cooperation Bureau visited Guangdong and Zhejiang for a visit and concluded: "the region with excellent economic structure and high industrial level shows good resistance and development potential."

Such a conclusion is by no means accidental.

In November 2008, December and January 2009, the import and export of processing trade in Jiangsu increased by 15.6%, 17.8% and 37.8% respectively.

Compared with Guangdong and Zhejiang, although South of Jiangsu's foreign trade import and export data are declining, the survival crisis of South of Jiangsu enterprises is not as strong as that of the Pearl River Delta and Zhejiang.

Statistics from the Guangdong economic and Trade Commission showed that the total number of enterprises closed in 2008 was only 7148 in 1-9 months.

From a regional perspective, the largest number of enterprises closed in Dongguan are 1464, in addition to 704 in Shenzhen and 526 in Foshan.

In October, the number of small and medium enterprises in Guangdong province dropped to 8513 in a month, larger than that in the first three quarters.

Liu Huanquan, director of the SME Bureau of Guangdong, said the enterprises that were closed were related to textile, clothing, hardware, plastics, electronic products, ceramic building materials and other industries, mostly traditional, low technology and high energy consumption.

Among them, Hong Kong and Taiwan funded enterprises occupy a large proportion of the total volume of Guangdong enterprises.

According to statistics from Guangdong Provincial Bureau of statistics, foreign investment and Hong Kong, Macao and Taiwan investment enterprises in Guangdong accounted for 42.8% of the total industrial scale in 2007 and the total industrial output value accounted for 61.1%.

Small and medium-sized enterprises account for more than 99.8% of all registered enterprises in Guangdong.

In addition, excessive concentration of the market is an important factor in the rapid decline of Guangdong's foreign trade.

The United States is the largest export market in Guangdong. In 2008, Guangdong's direct and indirect exports to the United States accounted for about 40% of the total value of Guangdong's exports.

Victory or defeat may have been foreshadowed 10 years ago.

Through the last round of intensive investment promotion, South of Jiangsu established its leading position in the advanced manufacturing industry in a very short time, and laid a better industrial structure. Although its dependence on foreign trade is very high, its ability to resist risks is stronger.

At present, in Suzhou's foreign trade structure, electronic products, optics, inspection, medical equipment, chemical products and other high technology categories account for most of the proportion.

By contrast, the proportion of traditional industries such as textiles has dropped to about 5%.

"Suzhou's advanced manufacturing industry, though many key technologies are still being mastered by foreign businessmen, is still much higher than its traditional industries in terms of its manufacturing industry level."

Zhang Erzhen, director of the Department of international trade of Nanjing University, said.

At present, the value-added rate of processing trade in Jiangsu's mechanical and electrical products (processing trade export processing trade import / processing trade import) has increased from 23.2% in 2004 to 70.7% in 2007? This indicator indicates that the added value of Jiangsu's production and processing links has increased significantly in recent years.

Li Renxiang still remembers many years ago when the receptionist arrived in Dongguan, "it feels like a cowboy society, lively and chaotic, with a poor sense of government service, which makes it difficult for Taiwanese businessmen to have a sense of belonging."

Later, a large number of Taiwanese businessmen came to Kunshan near Shanghai.

Great changes have taken place in the investment environment under the vigorous efforts of the local government. Many of the Taiwanese businessmen here have played the mobile phones to the local leaders of the party and government personally, so that factories can run and children go to school.

In a very short period of time, a large number of advanced manufacturing industries represented by the IT industry gathered in Kunshan.

Kunshan's processing trade has been at a very high starting point from the beginning. It has a longer industrial chain, a higher manufacturing level, a higher quality of domestic enterprises and higher added value of processing trade.

The reporter learned from the office of the leading group for employment promotion in Suzhou, although with the outbreak of the financial crisis, Suzhou has seen an increase in the unemployment rate since last October. However, with the increase of export tax rebate rate and the order of foreign enterprises, the demand for employment in Suzhou has once again increased.

To a certain extent, this shows that once the market demand is warmer, the economic rebound in South of Jiangsu and other places is still very fast.

"A very important phenomenon in this financial crisis is that the more in-depth the integration of the international division of labor, the higher the degree of openness, the stronger the ability to resist risks."

Zhang Erzhen, director of the Department of international trade of Nanjing University, said that South of Jiangsu's industrial structure is mainly IT, precision machinery and other advanced manufacturing industries, and the industrial chain is relatively long, forming an agglomeration of advanced industrial belts.

And foreign-funded enterprises have relatively strong ability to resist risks, and there will not be a lot of closures in the short term.

Perhaps the biggest crisis for South of Jiangsu is from the threat of pnational capital withdrawal. Over the years, this threat has been like a sword hanging on the head of South of Jiangsu's economy.

Under the financial crisis, will foreign companies withdraw from mainland China on a large scale?

From time to time, Taiwanese businessmen in Kunshan were surprised to find that the cost of starting a factory in the Yangtze River Delta has been very close to that of Taiwan.

Li Renxiang, chairman of Taiwan Hon Bang enterprise management company, calculates that the housing price in Shanghai has been equivalent to 25 NT NT / m2, while in Kaohsiung, the second largest city in Taiwan, the housing price is only 100 thousand? 120 thousand / sq m.

There are also soaring industrial land in Kunshan. The increasingly tense land development zone has been unable to accommodate some smaller Taiwanese investment enterprises.

In Taiwan, a college graduate can be recruited by RMB 4000 yuan. In mainland China, the price is not yet able to recruit graduates from a prestigious university.

With the start of the three links between the two sides of the Taiwan Strait, some fashionable ideas have been discussed fiercely among Taiwanese businessmen on both sides of the Taiwan Strait.

For example, Taiwan funded enterprises proposed to place 70% of the production process on the mainland, and the remaining 30% were completed in Taiwan, and then exported to the "made in Taiwan" label.

But with the advent of the financial crisis, these ideas are likely to remain in the discussion stage for a long time.

Two years ago, when he went to Vietnam to explore potential new plant sites, Li Renxiang was invited to join him as a consultant.

"The generation industry in Taiwan will always follow the leading enterprises. If such a leader is moved away, it will take away a large number of Taiwan funded manufacturers."

Li Renxiang analyzed.

However, it turned out that the practice of "Ren Bao" was only "doing what the mainland government saw". It was intended to move away as a bargaining chip in exchange for more policies in the Yangtze River Delta.

"If you go to Vietnam to study these places in person, the combined cost will not be much lower than that in Kunshan."

Li Renxiang said Vietnam's infrastructure is poor, such as the cost of communication, which is much higher than that of the mainland. "Taiwan telephone conference costs a lot of money," and Vietnam's construction costs and logistics costs are also high.