Pearl River Delta Glorious Past

The Hongkong Federation of industry expects that 60 thousand to 7 000 Hong Kong funded factories in the Pearl River Delta region will have 10% shutdowns this year.

"Trapped in rising costs and increasingly stringent regulation, thousands of factories are abandoning the PRD, and 10% of the 7 Hong Kong PRD factories in the Pearl River Delta will be closed this year."

Yesterday, the Wall Street newspaper, the world's most famous financial and economic media, published a long story entitled "the Pearl River Delta: Brilliance has become an old dream yesterday". It reports the phenomenon of industrial pformation that is commonly facing in many cities in the Pearl River Delta region.

"The Wall Street journal report shows that the pformation of the Pearl River Delta industrial upgrading and the pformation of Guangdong's economic development mode has attracted global attention. It is too early to say that the Pearl River Delta is going to be judged." we need to emancipate our minds to meet new challenges and be vigilant against the accelerated decline of Guangdong's comparative advantage.

Yesterday afternoon, Ding Li, director of the scientific research department of Guangdong Academy of Social Sciences, said.

Professor Lezheng, Dean of the Shenzhen Academy of Social Sciences, said: "the industrial upgrading of the Pearl River Delta should avoid too much administrative intervention in a short time to cause shock, and try to make the market adjust itself to promote gradual pformation".

The head of the Guangdong provincial foreign trade and Economic Cooperation Office said yesterday afternoon that the relevant articles of the Wall Street journal have not been seen before. The foreign trade and Economic Cooperation Department has organized relevant departments to investigate, and whether the phenomenon of the closure and relocation of some Hong Kong funded factories is due to policies or other reasons, and the results of the investigation have not yet come out.

The Pearl River Delta along the coast of Southern China has become a "world factory" for low-end products in the past 20 years, but now tens of thousands of factories have abandoned it.

This is a story written by Fang Fengmei and CANAVES, a well-known Chinese journalist from the Wall Street journal. In the Pearl River Delta: Brilliance has become yesterday's old dream, followed by the introduction.

The report says that the Pearl River Delta region is struggling to compete with other Asian manufacturing centers including other parts of China, trapped in rising costs and increasingly stringent regulation.

"The labor contract law, the increased tax burden of foreign-funded enterprises, and more stringent environmental regulations and increasingly stronger renminbi are all playing a role in the profit margins of Chinese companies in such labor-intensive industries as toys, clothing and furniture."

The report quoted Swiss Bank economist Jonathan Anderson in a February 24th report that this year may be the beginning of heavy losses for Chinese manufacturers' profitability.

Hongkong Federation of industry expects that 60 thousand to 7 000 Hong Kong funded factories in the Pearl River Delta region will have 10% shutdowns this year.

According to the report, Liu Zhanhao, vice chairman of the Hongkong Federation of industries, said that this ratio may be the highest in 20 years.

Some of the manufacturers will be permanently closed, some will move to inland China, and some will move out of China.

The information reported in the Wall Street journal is basically true, but we still need to wait and see for the prediction of 6000-7000 PRD factories in Hong Kong this year.

Yesterday afternoon, Professor Ding Li, director of the scientific research department of Guangdong Academy of Social Sciences, said.

Last year, Guangdong had more than 1000 shoe factories and related suppliers to suspend production, and the discontinued manufacturers accounted for about 10%. of Guangdong footwear manufacturers in the whole province, "the Wall Street Journal reported.

According to a survey by the international business daily in Chinese newspaper, the business scale of the company in Guangdong is mostly relatively small, and the investment of each family is less than 3 million dollars.