Truth: Failure Of Shoe Companies Is Not Necessarily A Bad Thing.

The tight policy environment has put pressure on traditional industries in the Pearl River Delta, and they are beginning to find their own way of life.

The government plays a crucial role in this process.

This time, the problems faced by the PRD may be the throes before the take-off again, or the harbinger of the economic downturn.

Whether Guangdong can seize the opportunity in this challenge is waiting for everyone to wait and see.

Output has been concentrated on large enterprises. Despite the fact that a large number of enterprises in traditional industries in Guangdong have gone bankrupt, there is no doubt that Guangdong is still highly competitive as the world's "manufacturing center".

According to customs statistics, in 2007, Guangdong exported 369 billion 250 million US dollars, still a big increase of 22.2%.

Among them, the export of mechanical, electrical and hi-tech products increased well: the export of mechanical and electrical products and high-tech products increased by 253 billion 260 million and 128 billion 350 million US dollars, up 23.8% and 22.9% respectively, accounting for 68.6% and 34.8% of the total exports of the province.

Exports of traditional commodities, furniture, travel goods and bags, toys, textiles and clothing, footwear and plastic products increased steadily.

In fact, behind a thriving export growth, on the one hand, the share of traditional industries is decreasing; on the other hand, many small and medium-sized enterprises in traditional industries are eliminated and the market is further concentrated on large enterprises.

So far, it is understood that a large number of bankrupt manufacturing enterprises are mainly small and medium enterprises, the industry's leading enterprises in the industry reshuffle suffered little impact, but get a good opportunity.

"We live pretty well. The main reason is that we focus on R & D and marketing."

In January 12th, Liu Caizhi, the marketing department of Shenzhen Wei An furniture company, told the weekly newspaper reporter that as the leading industry of the industry, Wei An furniture sold inside and outside the two legs, and its sales volume increased.

And because of the rise of domestic hypermarkets, the brand of large furniture enterprises in hypermarkets is protected, and the development space is quite good.

"The textile industry has a small profit, and the enterprise is in the process of labor pains. The reshuffle is a good thing for powerful enterprises."

Huang Zhizhong, general manager of Zhongshan Xinda import and Export Co., Ltd., said that now the big textile enterprises are facing difficulties and are trying to solve the problem by raising prices and upgrading products.

The government has guided the upgrading of industries and Dongguan, which is well-developed in processing trade, has been hit the most in this tight policy.

Last year, hundreds of shoe factories went bankrupt in Dongguan.

Dongguan is looking for a new way out.

On the afternoon of January 11th, at the Guangdong provincial foreign trade working conference, vice mayor Jiang Ling of Dongguan said that Dongguan is taking the road of industrial upgrading and pformation.

"The traditional industries have a relatively weak viability in Dongguan". Dongguan now takes the IT industry as a breakthrough, and encourages and supports IT enterprises that have entered Dongguan to set up R & D centers in Dongguan.

In addition, Dongguan's processing trade enterprises "take domestic sales as a breakthrough". Last year, 1~10 months, Dongguan's domestic sales volume reached 114 billion 300 million yuan, and domestic sales tax revenue was 8 billion 800 million yuan, exceeding the total annual total in 2006. In 2007, the domestic sales tax revenue was expected to exceed 10 billion yuan; the total value added tax of the wholly foreign-owned enterprises in China was 6 billion 50 million yuan, accounting for 41.4% of the actual added value tax of the whole city, an increase of 16.2%.

"Dongguan has always relied on comparative advantages and cost advantages to decline too fast, and pformation and upgrading are more urgent than expected. Now we have to cross this ridge and complete a leaping development."

Professor Ding Li, director of the scientific research division of the Guangdong Academy of Social Sciences and the regional competitiveness research center of the city, said.

In fact, not only Dongguan but also Guangdong province face the problem of industrial pformation and upgrading.

The traditional low value added, low profit, lack of independent brand and technical content of textile, clothing, furniture, shoemaking, toys, electronics and other labor-intensive industries have created the Pearl River Delta's former glory.

But when the situation changes, when the policy is no longer conducive to the development of Guangdong's external economy, resource shortage and environmental pollution, these industries that once supported the Pearl River Delta economy have become bottlenecks restricting the economic development and upgrading of the Pearl River Delta.

After the adjustment of the foreign trade structure and the promotion of industrial pfer and upgrading, the traditional enterprises in the Pearl River Delta have been exhausted.

Guangdong's industrial upgrading and economic pformation is an inevitable trend.

Huang Huahua, governor of Guangdong, said that the adjustment of foreign trade policy will inevitably bring about the impact on Guangdong Province in the short run.

In the economic pformation of Guangdong, we should "appropriately raise the threshold of processing trade".

In fact, Guangdong's policy has been tilting to high-tech enterprises and tilting to the service sector.

At the same time, part of the traditional enterprises in the Pearl River Delta are being guided by the government to move outwards. Over the past few years, more and more enterprises have moved their production lines to Guangdong mountainous areas and two wings areas with low production costs.

The Guangdong provincial government hopes to reduce migrant workers to solve the employment problems and economic development of both sides of the mountain area.

The speed of elimination must be strictly controlled. "Transformation and upgrading will force some enterprises to go bankrupt or pfer and eliminate some enterprises. This is a necessary labor pains."

Ding Li said, "however, we must be highly concerned and highly aware of the large number of bankrupt enterprises in Guangdong."

He believes that the Guangdong government proposes industrial upgrading and economic pformation, but Guangdong can not immediately complete this pformation, so many enterprises have to solve problems by developing and enhancing their competitiveness.

In fact, the government should still think of ways to help these traditional industries enhance their competitiveness and tide over difficulties rather than drive them away.

"When Guangdong's economy is eliminated and backward, the elimination speed must be strictly controlled so as to avoid" the comparative advantage is premature. "

Ding Li said.

In fact, if Guangdong goes out of the traditional and low value-added industries too quickly, it may cause a large number of traditional industries to go bankrupt or run away. Once this happens, and if the new high-tech industry fails to enter Guangdong in time to replace the old traditional industries, Guangdong will appear "blank", and the economy will be greatly damaged.

"Without these traditional industries, Guangdong's economy will be very dangerous."

A state-owned enterprise chief said.

At the same time, "once a large number of Chinese enterprises export collapse, factories will not be able to afford wages and workers will lose their jobs. It will become a political problem from economic problems and affect social stability."

Du Xu, general manager of Guangdong Light Industry Import and export Limited by Share Ltd, said.