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    Pearl River Delta Cage Cage Bird To Accelerate Pformation And Upgrading

    2008/3/19 0:00:00 10383

    Pearl River Delta

    Huang Huahua, governor of Guangdong Province, recently said that there were 244 enterprises in the Pearl River Delta last year, but there were more than 7000 new businesses.

    In addition, he also said that due to the shortage of land resources in the PRD and the cost increase, and the development of new and high technology, labour intensive Hong Kong funded enterprises should be encouraged to move the East and West wings of Guangdong from the Pearl River Delta.

    Huang Huahua encouraged labor-intensive Guangdong funded enterprises to move from the Pearl River Delta to the East and West wings of Guangdong instead of moving inland. It shows that in the context of the state's encouragement of the coastal enterprises to move to the central and western regions, Guangdong officials still want to retain and divert their enterprises to all parts of the country through their measures to coordinate the economic development of Guangdong's various regions.

    Huang Huahua pointed out that in fact, some labour intensive enterprises in the Pearl River Delta did not pfer the enterprise headquarters, but only shifted the labor-intensive processing industry to the mountains and East and West wings. Enterprises not only did not reduce production, but also expanded the industry.

    He stressed that the move is not "abandoning" Hong Kong businessmen, and emphasizing that Guangdong and Hongkong are old friends. The Guangdong provincial government is considering the establishment of a "twin city" in Hongkong and Shenzhen with the reference of the United States New York and New Jersey to jointly develop the economy.

    The Pearl River Delta is accelerating pformation and upgrading. Therefore, the government of Guangdong and Hongkong has set up an expert group on pformation and upgrading of PRD enterprises to study and increase independent innovation and research and development, expand the industrial chain, and create more products with independent intellectual property rights.

    Huang Huahua said that the government encouraged the "three capital" enterprises in the Pearl River Delta to move to the relatively backward mountainous areas of northern Guangdong and the East and west parts of Guangdong and the East and West wings because of their "good intentions". They stand on the position of Hong Kong businessmen for their consideration. The reason is that the land in the PRD is limited and the production cost is rising. If the labor-intensive enterprises continue to stay in the Pearl River Delta, the profit margins will only be less and less.

    In order to encourage industrial pfer of labor-intensive enterprises, Huang Huahua said that Guangdong has introduced many preferential policies for mountainous areas and East and West wings, where land and labor are very cheap, electricity prices are far below that of the PRD, and the overall production cost is much lower than that of the PRD.

    The pfer of labor-intensive enterprises to mountainous areas is good for enterprises, and the profit margins are bigger.

    After careful verification of the relocation of foreign-invested enterprises in Shenzhen, Dongguan, Guangzhou, Foshan, Zhongshan and Huizhou, the Guangdong provincial foreign trade and Economic Cooperation Office confirmed that there was no large-scale relocation of foreign-invested enterprises.

    Last year, the enterprises in the Pearl River Delta were mainly small and medium sized enterprises and labor-intensive traditional manufacturing industries. They concentrated on hardware, toys, clothing, footwear, plastics and other industries. More than 90% of them were Hong Kong and Taiwan enterprises, and the products sold by external enterprises amounted to 1 billion 214 million yuan, with about 13 thousand employees.

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