Foreign Exchange Reform Forced: Pearl River Delta Pformation And Speed Up

In June 22nd, the Central Bank of the people's Bank of China set the central parity of RMB against the US dollar to US $1 to RMB 6.7980 yuan. On the same day, the Ministry of Finance and the State Administration of Taxation jointly issued a document, and from July 15th, we abolished the export tax refund of 406 products including some steel and non-ferrous metal building materials.

The new policy of foreign exchange rebate and export tax rebate at the same time, let the enterprises in the Pearl River Delta once again linger at the crossroads.

"Although I had anticipated it, I still felt the pressure."

Dongguan foreign trade

"Foreign exchange reform and tax rebate also start at the same time. The pressure of processing enterprises is enormous."

Huang Xinwen told reporters that labor costs have risen by 20% since the beginning of this year, and the profit card has been around 3-5 percentage points.

Previously, enterprises generally expected that the value of the currency rose by 5 points, which could be maintained through tax rebate. Now it seems that the original revenue model can no longer be maintained.

However, Ding Li, director of the Guangdong Provincial Academy of Social Sciences competitiveness research center, told reporters that the pressure of the Pearl River Delta enterprises is itself a manifestation of extensive development mode.

In order to change this pattern thoroughly, at the beginning of this year, Wang Yang, member of the Political Bureau of the CPC Central Committee and Secretary of the Guangdong provincial Party committee, proposed that the Pearl River Delta should "accelerate the pformation of the mode of economic development" and prevent the "return" of the traditional development mode when the economic situation improved. It was the "number one project" for Guangdong in 2010.

"The remittance tax reform has contributed to the implementation of the" No. 1 project "in Guangdong.

Ding Li said.

Pilot projects in Dongguan: conversion of raw materials processing to three funds

Reporters learned that in order to implement the "number one project", Guangdong is now choosing a pilot project in Dongguan to operate an industrial pformation project called "material processing to three capital".

Ding Li believes that the pilot "will change the survival of enterprises in the Pearl River Delta."

"The state will soon not allow the existence of such an enterprise form of raw materials processing, and we must be sober!" mayor Li Yuquan of Dongguan said at a mobilization meeting of industrial pformation in May. He could not lose the opportunity of pformation and upgrading of processing trade because of the gains and losses of the vested interests.

The existing material processing in Dongguan is a fragmented and localized economic mode: under the guidance of overseas orders, the brand products are decomposed into many links, and a large number of workshops and family farms without legal personality are made up of labor division, and the intermediate pipe companies are finally assembled and OEM, and then sold to the world.

The invisible production of thousands of households, the production and marketing sides have huge room for tax and employment. However, because the subcontractors do not have the status of legal persons, the domestic sale and independent innovation of products are difficult to go further.

As a result, it is highly dependent on exports, weak internal radiation, and cheap and low quality.

In order to reverse this situation, the government has released various policies to try to turn this model into a sunshine. However, due to the obstacles to vested interests, the relevant efforts have failed.

"Tax reform" has disintegrated the old interest pattern and is a great boost to the "three pfers".

Gao Yupeng, Deputy Secretary General of Dongguan textile and garment industry association, said that the first wave of RMB appreciation in 2005, many textile and garment enterprises were scalded. Before and after this exchange rate floating, Dongguan enterprises also had expectations of appreciation, and became cautious.

Gao Yupeng told reporters that the Pearl River Delta textile enterprises have four business elements, Japanese equipment, Hongkong design, mainland labor and export tax rebates.

Abolish the tax rebate, destroy the low profit marketing mode, and raise the wage cost.

The core of upgrading and pformation is to turn the development pattern of enterprises from production workshop to enterprise headquarters.

Huang Guanqiu, director of the Dongguan Municipal Bureau of foreign trade and economic cooperation, said that the government, taking advantage of the situation, adopted the principle of "voluntary, non stop, change, preferential and convenient" operation to encourage the processing workshop to pform itself into a three capital enterprise in order to get a formal business identity and to undertake various preferential measures of the government so as to solve the large-scale production shutdown problem in the Pearl River Delta.

Huang Guanqiu said that the target of pformation and upgrading of processing trade in Dongguan this year is "three one thousand": promoting the pformation of 1000 processing enterprises, promoting 1000 processing trade enterprises to expand domestic sales, supporting 1000 enterprises to improve their productivity level, and by 2012, Guangdong province's non processing enterprises with no legal person qualification should be basically pformed into foreign-funded enterprises.

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Specimen significance

"Dongguan's" three pfers "initiative has the characteristics of overall pformation.

Fang Jianbo, deputy director of the Dongguan Municipal Bureau of foreign trade and economic cooperation, said that the policy was initially involved in 6 functional departments, and now expanded to 11, involving customs, taxation, industry and commerce, fire protection and environmental protection departments.

Fang said that the "reformed" material processing and development mode, which was created by Dongguan 30 years ago, has once become a specimen of export-oriented industrialization in coastal areas. The exploration and development of processing trade pformation and upgrading today is also the first move. It asks the whole country "background of changing the way of economic development", or even more meaningful.

"The government should help enterprises to pform in the premise of respecting the profits of enterprises."

Fang Jianbo said that the equipment import problem of raw material processing enterprises is the interest attraction point of this pformation and reform.

Equipment in customs control period can be tax-free and pferred to new ones.

In addition, expanding domestic sales of export processing trade is also a privilege to "pfer three capital" enterprises.

Fang Jianbo introduced that the government of Dongguan had already joined the customs and issued a centralized declaration mode. After the approval of the domestic sales, the sales of all bonded goods could be declared at the Customs on the 15 day of next month.

Since 2009, Dongguan has provided centralized guarantee for the tax pilot enterprises' domestic sales, and has put a sum of money in the government's 1 billion pformation and upgrading fund to the bank to guarantee the domestic supervision enterprises.

To expand domestic sales, the government of Dongguan

Liang said that during the two sessions of the two sessions, Dongguan had already handed in a motion as a deputy to the National People's Congress, and is currently doing further material collection. "This is a matter of understanding the issue of the value orientation of labor-intensive enterprises in our economic life, and also a major policy choice problem."