Many Ministries Go To Guangdong To Develop Footwear Industry And Other Enterprises.

"In the past two months, 6 ministries and commissions, including the Ministry of Commerce, have gone to Guangdong for research to determine the next step of policy thinking."

A person familiar with the Guangdong provincial foreign trade and economic cooperation told reporters.

At the end of December 2007, a number of departments of the Ministry of Commerce went down to investigate again after the announcement of the banned catalogue of processing trade for the 589 new products.

"Now there has been a succession of corporate failures, and after the lunar new year, there is expected to be a large number of obvious failures or relocation of enterprises."

Huang Mingzhi, President of Shenzhen Association of Taiwanese businessmen, is not optimistic about the future.

Many ministries and commissions went to Guangdong to study "too fast and suddenly". Since the second half of 2007, the adjustment of export tax rebate and processing trade restriction catalogue has made enterprises unprepared, and has also aroused great reaction from domestic processing trade enterprises.

"From the export tax rebate in July 2007, the August Article 44 (processing trade Restricted Commodities List) and the latest new labor law, these policies come together in a short period of time, giving enterprises too short a buffer period, and enterprises can no longer cope with them."

President Huang Mingzhi said.

In fact, many ministries and commissions, including the Ministry of Commerce, have not stopped responding to the problem of corporate feedback and how to deal with it.

Professional analysis, on the one hand, the government should alleviate the pressure of trade surplus and reduce trade frictions; on the other hand, the government should also avoid policies too urgent, enterprises do not digest space and hurt the entire industry.

"The policy adjustment of processing trade has become a foregone conclusion."

Xue Xiaowei, director of Shenzhen Guanlan Bao de toy factory, said that the government of the "three to one supplement" project is no longer approved by the government. Now the enterprise is exploring the form of joint venture or sole proprietorship with foreign investors.

At present, the relevant government departments are registering which enterprises need to change their systems, and the enterprises have also submitted plans to the government, hoping to achieve the pformation of business mode without ceasing production.

Wang Tao, director of the processing trade department of the Guangdong provincial foreign trade and Economic Cooperation Department, told reporters, "at present, the government has formed a recognition after many investigations. Policy adjustment should take into account the situation of most enterprises, and it should be gradual and progressive so as to give enterprises an adaptation process."

But Wang Tao stressed that the industrial orientation of policy adjustment is correct.

The form of processing trade in Guangdong is changing from the initial entrustment to the raw material processing of enterprises.

After that, enterprises should adapt to the policy adjustment and turn Guangzhou and Shenzhen original headquarters into R & D operations centers and pfer production bases to the outside world.

Enterprises in the Pearl River Delta are facing closure and withdrawal. While the government is investigating, tens of thousands of enterprises in the Pearl River Delta are facing the withdrawal and merger.

Liang Bai, director of the Hongkong economic and Trade Office in Guangdong, predicted that tens of thousands of Hong Kong funded enterprises will face life and death decisions in the next two years.

"There is a growing trend in the collapse of processing trade enterprises in the Pearl River Delta, and some of them are ready to turn off the factory after the Spring Festival, some of them are going to wait for half a year or a year," the Dongguan company, a Hong Kong capital enterprise who produced wooden toys, told reporters.

Huang Mingzhi told reporters that there has been a succession of corporate failures, and that after the lunar new year, there is expected to be a collapse of corporate dominance.

According to the reporter, recently, a Taiwanese furniture factory in Qiaotou town of Dongguan has closed down, and the boss has run away and owes about 8000000 yuan in wages.

In October of 2007, Dongguan's representative shoe making enterprise, Tai Tong shoes Co., Ltd., suddenly closed down, and unilaterally terminated the contract with the employee with about 40000000 yuan economic compensation.

According to information from the Asian Footwear Association, nearly three thousand shoe factories and related enterprises in Guangdong have been closed or moved out in the first quarter of 2007.

In the past six months, the number of toy enterprises in Shenzhen has also dropped sharply.

A Shenzhen toy factory owner told reporters that after the "MATTEL toy" incident in August 2007, the state inspection and quarantine department strengthened the licensing of toys export registration and re issued the toy export certificate. If the enterprise failed to get the certificate before January 1, 2008, the export would have problems.

"In August, relevant government departments verified that only more than 500 of the 1200 toy companies with export certificates before Shenzhen were in operation, of which more than 200 were qualified.

After several months of rectification, only 300~400 toys enterprises in Shenzhen got certificates at the end of December.

At the same time, competent enterprises began to consider relocation, insiders told reporters.

But now the relocation of enterprises are quietly carried out in the field, do not use the original company name, fear of causing suppliers uneasy to rush for payment.

In the process, many small factories that were originally attached to large factories could only go bankrupt.

It is understood that there are more enterprises moving from Guangdong to Jiangxi and Guangxi.

Xue Xiaowei, Shenzhen Guanlan Bao de toy factory, said: "now feel that the processing trade is in decline."

Background information: in 2007, the government promulgated the policy of controlling exports and adjusting the structure of foreign trade. In June 18, 2007, the Ministry of Finance and the State Administration of Taxation issued the notice on lowering the export tax rebate rate for some commodities, stipulate that the export tax rebate policy for some commodities should be adjusted from July 1, 2007.

In July 23, 2007, the Ministry of Commerce and the General Administration of Customs jointly issued the "Document No. 44" (the list of processing trade restrictive commodities), and the export of 1853 processing trade, such as textiles and furniture, was limited.

At the end of December 2007, a list of prohibited categories for processing and trading of the 589 new commodities was announced.