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    The Trend Of Enterprises Moving Inland Shows The "Earthquake" Of The Foundry Industry In The Pearl River Delta (1)

    2010/7/2 12:04:00 59

    Made In China

    The Foxconn incident is absolutely symbolic to the Pearl River Delta.


    The follow-up effect of workers' wage increase is gradually emerging, and the high cost pressure brought by it is testing the labor intensive enterprises in the Pearl River Delta. In fact, not only the high cost of manpower, but also other things such as RMB appreciation, the foreign trade environment has not yet fully recovered, and the international economic situation is still unknown, is a way to cross the front of enterprises.

    At present, Foxconn has decided to move to Langfang, Hebei, and more enterprises are also actively visiting the mainland to seek opportunities for landing.


    Provoke "

    Made in China

    The Pearl River Delta industrial cluster is encountering severe shocks.

    If the new high value added industry is out of the Pearl River Delta and remains the most basic processing industry, where should the future of the PRD go?


    In the 80s and 90s of last century, the manufacturing industries of textiles, clothing, toys, shoes and hats and electronics in Taiwan, Hong Kong and Macao were pferred to Guangdong on a large scale. About 9 000 processing trade enterprises in the country, about 7 in Guangdong, expedited the development of Guangdong's processing trade, and brought Guangdong's foreign trade into a glorious era. Since 1986, the total value of Guangdong's imports and exports has been sitting firmly in the province.


    However, the change has always been so rapid that the original advantages of Guangdong's foreign trade are gradually turning into a disadvantage.

    The contradiction between the essence of cheap labor in processing trade and the rising cost of production in the PRD is intensifying.


    Moreover, this year, China's foreign trade has rebounded sharply with the gradual recovery of the international economy, but the growth rate of Guangdong's foreign trade is obviously lagging behind the whole national level and the Yangtze River Delta.

    According to Chinese customs statistics, the total value of foreign trade and import and export in Guangdong in 2010 1~5 was 279 billion 370 million US dollars, up 34% from the same period last year (below the same level), which is lower than the 44% growth rate of the whole country.

    Over the same period, Jiangsu, Shanghai and Zhejiang were 174 billion 290 million US dollars, 139 billion 330 million US dollars and 94 billion 750 million US dollars respectively, representing an increase of 50.1%, 43.6% and 41.4% respectively.


    Zhou Shijian, executive director of the China International Trade Association, told the first financial daily that the cost of labor and resource prices rose rapidly this year. The impact of the processing trade on both sides was much greater than that of general trade. This is the main reason why the growth rate of the Pearl River Delta, which accounts for a large proportion of processing trade, is lagging behind the whole country.

    Processing trade is mainly dependent on cheap cost, and Guangdong's advantage is losing.

    As Foxconn and other foundry companies raise salaries, Guangdong's growth rate of processing trade in the second half of this year may still be lower than the first half.


      

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    Read the next article

    The Trend Of Enterprises Moving Inland Shows The "Earthquake" Of The Foundry Industry In The Pearl River Delta (Two)

    From the data released by the Guangdong branch of the General Administration of customs, we can see that the processing trade in Guangdong this year is less than that in general trade. In the 1~5 months of this year, Guangdong's processing trade imports and exports reached 155 billion 670 million US dollars, an increase of 29.9%, accounting for 55.7% of Guangdong's total import and export value, while the general trade import and export 98 billion 620 million US dollars, an increase of 4

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