"Industrial Hollowing" To Torture The "Made In China" Survival Soil

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"I only become a rich man in 25 years, and the real estate industry can create a group of millionaires overnight.

To engage in industry is like eating lean bones. Investing in real estate is like eating fat meat, so there is a phenomenon that "big entrepreneurs invest in real estate and small business owners buy houses."

Ningbo Ruyi Limited by Share Ltd chairman Chu Ji Wang said that the huge profits of real estate made many entrepreneurs unwilling to do business, but they used money to invest in real estate.

Zhuo Yongliang, director of Zhejiang development and Reform Research Institute, said that the current need to guard against the signs of Industrial Hollowing in Zhejiang is: on the one hand, a large number of Zhejiang's industrial capital spillovers become private funds to enter the real estate and financial investment fields, and feed back to industry; on the other hand, since the financial crisis in 2008, some traditional industries in Zhejiang have moved to the Southeast Asian countries such as the central and western parts of the country and Vietnam, or there have been industrial atrophy.

A recent report by the Institute pointed out that one obvious feature of Zhejiang's economy this year is that investment in manufacturing industry has dropped significantly, but real estate investment has been on the increase.

In the first half of May, the fixed assets investment increased 26.2% in the whole province, the growth rate was the highest since 2005, 7.2 percentage points higher than the same period last year.

From 1 to May, manufacturing investment increased by 15.3% compared to the same period last year, and the growth rate dropped by 7.4 and 2.2 percentage points respectively compared with the first quarter and the same period last year.

On the contrary, investment in real estate development has increased by 44.4%, breaking through the highest value in the past 6 years and contributing 46.3% to investment growth.

Investment in real estate development accounts for more than 30.9% of fixed asset investment, while the national average is 20.8%, while Shandong and Jiangsu are only 17.4% and 20.1% respectively.

Zhuo Yongliang said that under the strict regulation and control policy, the real estate investment in Zhejiang is still growing at a high speed. In addition to the common reasons behind the lag of construction progress and the restrictions on the start of the time limit, the financial institutions' practice of not abandoning or abandoning the real estate business is an important factor, and this situation is rare in the whole country.

From 1 to May, the growth rate of investment in real estate development in Zhejiang was 12.2%, only 3.2 percentage points lower than that in the same period last year.

The growth rate of real estate loans in the whole country and coastal provinces and cities has dropped by more than 20 percentage points, and Jiangsu and Guangdong have fallen by 43.5 and 50.6 percentage points respectively, with negative growth.

In addition, most of the garment enterprises in Wenzhou are diversifying their investments.

Have the strength of their own development of real estate, small businesses on speculation.

Xu Zhengjie, chairman of Zhejiang Kuai Shuai Garments Co., Ltd., said, "many couples in Wenzhou have worked hard to make about 100000 a year. The wife can buy millions of apartments, so this gap can not stimulate everyone to make quick money."

The reporter interviewed the Secretary General of 10 industry associations such as electronics industry association in Yueqing, Zhejiang. These representatives representing the associations of more than 2000 enterprises have concentrated on the fact that many enterprises have invested in the "33 system" phenomenon, that is, industrial investment accounts for 1/3, and real estate, stock and securities account for 1/3.

"It shows that factories are running low, and entrepreneurs say there is no money, but in fact, a lot of money is invested in real estate and stocks."

Wang Zhulin, Secretary General of Yueqing Electronics Industry Association, said.

According to the press survey, a group of people who are "getting rich first" in coastal areas have been reluctant to make property gains by doing business. Not only Wenzhou and Zhejiang people, but also assets everywhere.

Huang Jinde, chairman of Ningbo Huaxing Tire Co., Ltd., located in Cixi, said: "financing difficulties, expensive employment, rising prices of materials, appreciation of RMB and a series of pressures have been highlighted. Many employers are afraid of the current situation and dare not invest in industry.

My company originally had more than 800 employees, and now it has been reduced to more than 400. "

Huang Fajing, President of Wenzhou smoking Industry Association, said that the metal lighters industry, which once occupied over 90% of the country's output, is now facing the shrinking of the whole industry.

Before 2008, there were more than 500 lighters in Wenzhou, but now there are less than 100 enterprises, and there are only 1/3 left over to concentrate on management. "They have shifted their focus to other industries, such as real estate, minerals and third industries."

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Industry "hollow" spread fear

"The first two years in the real estate market, and recently in the capital market, under the stimulation of a night's riches, Wenzhou's increasing number of industrialists based private entrepreneurs have abandoned their main businesses, and have not only increased the prices of housing, but also made more enterprises invest in the same fashion, resulting in the risk of bubble economy."

Zhou Dewen, President of the Wenzhou SME Development Association, said that the emergence and spread of the "hollowing out" industry will lead to more capital withdrawal from the industrial and economic sectors and stimulate the rapid "bubble" of assets.

Some experts believe that in the early days, the private enterprises in Zhejiang, which had achieved primitive accumulation mainly through the manufacturing industry, were easily tied up with various market-based hype when they encountered the "bottleneck" of industrial development.

In addition to the reputation of the "Wenzhou real estate group", in recent years, Zhejiang has also emerged "Cixi heritage Troupe", "Lishui Hydropower Group", "Zhejiang trademark group", "Yongkang Housing Group" and many other "do not do business" of "idle capital speculation group".

The latest visit of the Zhejiang Provincial Department of Commerce to more than 1700 foreign trade enterprises shows that about 20% of the enterprises' main business profits account for less than 20% of the total profits, showing the phenomenon of "business main business marginalization".

In the first half of this year, Jiangnan leather, three flag group, pearl light group, Tianshi electronics and other manufacturing enterprises collapsed in Wenzhou and Taizhou.

Zhou Dewen, President of Wenzhou SME Investment Promotion Association, said that there are about 36 SMEs in Wenzhou, and 20% of them are in semi shutdown or downtime.

In the workshop of Zhejiang Kang Le Electronics Co., Ltd., the reporter saw that the small business with annual sales of about 10 million yuan only opened 60% load.

"According to the current trend, 40% of the small and medium-sized coastal enterprises may stop or stop half after next spring festival."

Zhou Dewen said.

Some experts also believe that the hollowing out of industries and the fast earning of enterprises will also spur the large-scale development of private usury. Meanwhile, the development of usury will in turn accelerate the hollowing of industries. For a long time, private capital will be flooded, and the price of goods that can be fry will be fry everywhere to accelerate inflation.

But there are also local government officials believe that in the economic development to a certain stage, diversification and industrial pfer are inevitable pformation and upgrading of the economic structure.

Zhang Zhenyu, director of Wenzhou financial affairs office, said that in the economically developed areas like Wenzhou, the real economy is to shift a little bit, and then introduce high-end ones, such as vigorously developing the financial services industry.

Zhuo Yongliang said that in the process of industrial structure development, if the level of productivity and science and technology are divorced from reality, and even the original industry is neglected, the phenomenon of "old age and no longer" is likely to happen.

Zhejiang

The economy has already been in the period of accelerating the pformation of industrial structure. In particular, we should attach importance to the convergence of new and old industries. We must vigorously cultivate new industries and develop new and high technology industries, and strive to upgrade traditional industries. Otherwise, there will be economic weaknesses.

Four kinds of small and medium enterprises have great pressure to survive.

Reporters found that from the perspective of enterprise size, the most prominent business survival crisis is small and medium enterprises with less than 20 million yuan of employees and less than 200 employees, while most of the medium-sized enterprises with strong financing and innovation capabilities are in good condition.

However, according to the "economic reference daily" reporter's understanding of the three coastal provinces, many owners believe that they are facing "the most difficult survival period in history".

According to the type of enterprises, the four types of enterprises have the greatest pressure to survive at present.

The first is "raw material dependent enterprises", which refers to the proportion of raw materials in higher proportion of product cost.

Reporter survey found that hardware, cotton spinning, furniture and other industries trapped small and medium-sized enterprises generally exist this problem.

Zhao Liwen, deputy general manager of "Tian Yin" Alloy Technology Co., Ltd., located in Liushi, Zhejiang, China's low voltage appliance capital, said that 30% orders have been pushed off this year, which has never been seen for more than 20 years. "In April, the price of silver jumped to ten thousand yuan and a ton, and the factory almost collapsed, and now the profit is only 5%."

Due to tight funds, the raw materials of tin silver stock were reduced from 2 tons to 200 kilograms.

The two is "traditional low profit manufacturing enterprises".

Enterprises generally reflect the difficulty of survival, because the production factors such as labor and raw materials have been rising in price, making the originally small profits turn to zero.

As the largest traditional textile industry in Zhejiang Province, textile enterprises are facing this problem.

At present, the general profit of Zhejiang textile industry is still around 5%, coupled with the difficulty of lending, forcing some enterprises to finance from the folk.

With the current minimum monthly interest rate of three points in Wenzhou, the interest rate of one year is still up to 36%, which is more than 7 times the production profit of the textile industry.

In the manufacturing industry, the profits that will be dissatisfied with the usury will eventually push the enterprise to a dead end.

The three is "shrinking demand and overcapacity enterprises".

Reporters learned in Wenzhou that there were more than 4000 local lighters, and more than 500 on the eve of the financial crisis in 2008, and only about 110 now. Only 1/3 of those still live in lighter production.

"More bosses only make the enterprise as a financing platform to keep it alive."

Huang Fajing, President of Wenzhou smoking appliances industry association, said.

Some emerging industries, which are blindly switching to traditional industries, are also facing a crisis of overcapacity.

According to statistics, the number of enterprises engaged in R & D and production of LED products in Hangzhou has increased rapidly from 16 in 2000 to 179 in September 2010, more than ten times, but demand has not kept pace at the same time.

The fourth category is "environmental disqualified enterprises" and "backward production enterprises".

After the blood lead incident occurred in Deqing city in Zhejiang in May this year, the Zhejiang provincial environmental protection department sent 10 inspection teams to carpet inspection of all 273 battery enterprises registered in the province, of which 213 enterprises were ordered to stop production.

Some battery companies are affected by this effect. They are unable to complete the product orders, and are faced with business difficulties after they encounter compensation for breach of contract.

The list of backward production enterprises announced by the Ministry of industry and Commerce in July contained more than 2200 enterprises. Among the cement and paper industries involved, the number of enterprises being eliminated was over one thousand, most of which were small and medium-sized enterprises.

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It is also understood that in the Pearl River Delta region, many enterprises are basically in the "simple reproduction" state because of "no profits".

In Buji, Shenzhen, a company specializing in foreign trade OEM, Wang surnamed said that in the past year, hundreds of thousands of garments could be processed at most. In the first half of this year, the output was less than 5000. "Now it is a lot of orders.

Once the device is stopped and restarted, it may not work. "

Zhejiang Provincial People's Congress finance and Economic Commission responsible person analysis said that from 1 to May this year, Zhejiang's industrial profits above designated size increased by 33.7% over the same period last year, but the profits were mainly concentrated in large enterprises and large groups.

Zhang Wenxian, director of Guangdong SME Bureau, said that the added value of SMEs in Guangdong maintained a two digit growth from 1 to May, and the added value exceeded 11% of the average level of the province. "This shows that most of the shutting down businesses are small businesses and small enterprises, which have little impact on the overall output value."

Experts recommend: adjust industrial policies and optimize the "survival soil" made in China.

Reporters interviewed learned that a group of government officials and experts and entrepreneurs generally believed that Zhejiang's "Industrial Hollowing" signs did not appear this year, but the difficulties faced by the manufacturing industry may exacerbate this trend.

The fundamental way to avoid Industrial Hollowing lies in optimizing the survival of manufacturing industry and strengthening the development capacity of manufacturing industry.

Shi Jinchuan, a professor at the school of economics, Zhejiang University, believes that to solve the problem of "hollowing out" industry, we must first solve the dilemma of the survival of SMEs in Zhejiang fundamentally, and the pformation and upgrading of industries and technological innovation are imperative.

Chen Dongqing, chairman of Wenzhou Jingyi group, believes that the general direction of the current round of macroeconomic regulation and control is to promote the pformation and upgrading of enterprises, but the key is to see the implementation of various regions.

Now there is competition among provinces and between provinces, so they may spare no effort to help their own regional economy, which may lead to resistance to central regulation.

"Therefore, local governments must have pressure to keep things away from the climate. They should not be partial."

Entrepreneurs call for the implementation of the central government's overall plan to support small and medium enterprises. Local governments should not only focus on individual businesses, or rely on only a few large projects, and expect large projects to generate radiation and bring them around.

It is necessary to study the characteristics of a local industrial chain according to local conditions. From the perspective of upgrading the industrial chain, every link in the industrial chain will be supported by Pratt & Whitney.

Make regional competition a benign competition of industrial clusters, not just competition among enterprises.

Ni Mengxuan, chairman of Zhejiang Nan Yi Gift Co., Ltd., said that supporting the upgrading of the industrial chain is, in particular, the government should encourage the procurement of brand enterprises to the local industrial chain, and give support to tax feedback. For the enterprises that are actually financing the upgrading of enterprises, upgrading industries, and introducing new and high technology to pform the industrial chain, the government should also give preferential policies on taxation and land use.

Entrepreneurs also suggest that at least province should be organized as a unit to sort out the key industries and pillar industries in the region. We should refine management and differentiate treatment, and how to further promote pformation and upgrading and conduct assessment.

Only when the industrial chain is bigger and stronger, every enterprise has a strong sense of attachment and sense of belonging. The "hollowing out of the industry" will be effectively curbed.

In addition, the relevant personages also suggested that in order to promote industrial pformation and upgrading, industrial policies must be treated equally in all parts of the country, and no longer should adhere to the strategy of "gradient development".

Zheng Yumin, director of the Zhejiang Provincial Administration for Industry and commerce, said that the long term "gradient" made the backward production capacity without a sense of urgency, and repeated "cloning" backward production capacity and low cost strategy all over the place were not going to be an industrial upgrading and innovative way to "see the wise and think alike", so that the mode and capacity of the "farewell" should continue to grow.