The First Pformation Of The Pearl River Delta Labor Pains

Resources are urgent, cost rising and policy tightening.

Since the end of last year, a new round of industrial pformation and upgrading in the tide of globalization is being heard.

Enterprise anxiety, experts ask questions, and the government is actively facing and clarifying.

In the context of resource crisis, RMB appreciation and rising production costs, did the Pearl River Delta enterprises move out?

How serious is the relocation?

Are they going to "root out" completely, or expand expansion to rearrange production?

Today, this newspaper has launched a large-scale report on the truth investigation of the relocation of enterprises in the PRD to answer the above questions.

In the past 30 years of reform and opening up, the Pearl River Delta has been making great progress. Now it is experiencing an unprecedented industry.

On the one hand, some shoe companies are closing down, toy factories are closing down, plastic production lines are moving away from home, on the other hand, the world's top 500 enterprises continue to enter, and more and more enterprise R & D centers are settled.

Our reporter survey in recent three months shows that the Pearl River Delta "world factory" is facing the painful pformation of industrial pfer and upgrading because of the acceleration of the survival of the fittest.

The acceleration of the survival of the fittest seems to be overnight. The industrial pformation of the PRD has become the focus of public opinion in the whole country and even in the world.

The topic begins with the closure of some enterprises in the PRD.

Most notably, a shoe factory called "Chang Deng" in Dongguan, with thousands of employees in its prime, was closed at the end of last year.

Li Peng, secretary-general of the Asian Footwear Association, said that the five thousand or six thousand shoe manufacturers concentrated in the Pearl River Delta have closed or are closing at least one or two.

The rising cost is considered to be the main reason for this "shoe business storm".

Dongguan, an entrepreneur who has been making shoes for many years, analyzed to reporters: labor costs increased by 50% compared with six or seven years ago, raw materials increased by two or three, plus the EU's "anti-dumping", many enterprises could no longer support, or close, or choose to move to lower cost Hunan and Jiangxi.

It's not just shoe factories.

Also for labor-intensive enterprises, furniture, toys, instruments, plastic, clothing and so on have also been blown out to inland provinces and even to Vietnam and Kampuchea.

The Hongkong Federation of industry expects that the number of tens of thousands of Hong Kong funded factories in the Pearl River Delta will be discontinued for 10% this year, which may be the highest in 20 years.

Many Pearl River Delta research experts said that the trend of survival of the fittest in the PRD has been accelerating since last year.

"Massive relocation" or exaggeration, but also different voices.

Jiang Lin, an economics professor at Zhongshan University and President of Dongguan Chuang Chuang Investment Research Institute, believed that a considerable number of enterprises that had been rumored to shut down were temporarily out of business because of rising costs.

Statistics also express different views.

For the Pearl River Delta, where competition is intense, the survival or death of enterprises is already a normal state.

Take Dongguan as an example, since 1978, a total of 3.3 enterprises have been approved, but now there are only 1 families. In the 30 years, on average, 700 enterprises were eliminated naturally. According to Jiang Ling, the Standing Committee of the Dongguan Municipal Committee and vice mayor of Dongguan, only more than 900 enterprises were closed down in 2007, which is a normal phenomenon.

The Guangdong provincial foreign trade and Economic Cooperation Department, after in-depth investigation in the Pearl River Delta region, also believes that the "massive relocation of enterprises" has been exaggerated in the past few months.

Research shows that in 2007, Guangdong moved only 244 enterprises with foreign investment and processing enterprises, while the Pearl River Delta now has only 4.3 enterprises in Hong Kong alone.

For the first time, I realized that the crux of globalization is that since the relocation and closure of enterprises every year, why did it cause such a big stir?

"The Pearl River Delta is facing unprecedented pformation pains."

Professor Feng Xiaoyun, editor in chief of the economic frontier, who has been tracking the Pearl River Delta economic development for nearly 20 years, believes that since the reform and opening up, the Pearl River Delta has been sailing smoothly in the tide of globalization, but today it is the first time to realize the cruelty of globalization.

In the past 30 years, the global industrial pfer in Europe, America, Japan and Asia "four little dragons" has gone through at least three waves: before the mid 90s of the last century, the light industry represented by clothing, shoemaking and toys; IT industry represented by electronic information after the middle of 90s; and after 2000, it was heavy chemical industry.

Due to the comparative advantages of location, land and labor force, the Pearl River Delta successfully seized the first two wave of industrial pfer, thus realizing the two industrial upgrading from sangchi fish ponds to light spinning, from light spinning to IT. Due to the relative abundance of resources and the "old not to go, new", the Pearl River Delta almost did not realize any pain in pformation.

"But this pformation is quite different."

Feng Xiaoyun analysis said that the rising labor costs, especially the land resource constraints that heavy industries needed badly, made it impossible for the PRD, especially the core industries such as Shenzhen Wan, to accept foreign investment without any threshold.

What should I do?

Cage for birds.

But the new problems are coming. - can we bring the Phoenix to the Pearl River Delta as the investment highland?

For the Pearl River Delta business group as the "world factory", will a large number of SMEs move out of the industry chain?

For tens of thousands of enterprises here, if they move out, will they also face the problem of rising costs in a few years?

"All these pressures, anxieties and choices will be intertwined under the tight background of resource crisis, RMB appreciation, the implementation of the new labor law, and environmental and tax policies."

Ding Li, the famous regional expert and director of the scientific research division of the Guangdong Academy of Social Sciences, believes that the superposition effect of the Pearl River Delta and Pearl River Delta enterprises constitutes the "labor pains of pformation" at the moment.

Industrial upgrading seeks repositioning, but bathing is often a prelude to Phoenix's rebirth.

Reporters in the Pearl River Delta research found that from the province to the region, from the government to enterprises, in the industrial upgrading to seek repositioning, has gradually formed chorus chorus.

"The keynote of chorus should be scientific research innovation and the establishment of its own brand."

Dr. Guo Wanda, vice president of the Comprehensive Development Research Institute (Shenzhen), said that a successful precedent can be found in the Pearl River delta itself.

In the early 90s of last century, Shenzhen had experienced the first wave of labor-intensive enterprises' relocation because of rising costs, and industrial added value was once negative.

After the pain, Shenzhen began to rise in HUAWEI, ZTE, BYD and Tencent, and the former Huaqiang North and Shang Bu industrial zones were also pformed into the central business district.

"Do research and development to the upstream of the industrial chain, and make brand to the downstream of the industrial chain."

Ding Li analysis said that global production is always like finding migratory birds to find the lowest production cost area.

In the past, the PRD represented the "cost advantage" and benefited from the tide of globalization. Now, when our cost is rising, we must accumulate new competitive advantages while recognizing the cruelty of globalization.

Transformation is a consensus.

The Guangdong provincial government and the Hongkong government have set up a Pearl River Delta industrial pformation and upgrading group.

During the national "two sessions" held just now, governor Huang Huahua pointed out clearly that the pformation and upgrading of processing trade enterprises should first encourage enterprises to increase their independent innovation and scientific research efforts and create more independent brands.

As a concentrated area of processing trade enterprises in Dongguan, the local government issued a call for "pformation and growth with us". From this year, we started to spend 1 billion capital annually to support enterprises in R & D and brand development, while attacking the domestic market.

In fact, the Pearl River Delta has begun such a quiet pformation.

For example, the top 500 multinationals continue to enter, for example, more and more enterprise R & D centers are settled.

In some areas, it is even clear that "attracting investment" should be changed into "attracting investment and attracting wisdom".

In Shenzhen, Foxconn, known as the global "foundry king", has also offered the slogan of "Foxconn of science and technology", employing 5000 international engineers to research and develop and launch its own brand.

Dongguan, which has only three listed companies, has 56 queuing companies due to the development of the domestic market.

What is more concerned is that in 2007, the domestic tax revenue of Dongguan enterprises exceeded 10 billion yuan for the first time.

Lu Hanbiao, deputy director of Dongguan Municipal Research Office, said, "this is a landmark breakthrough for Dongguan."

The upgrading and pformation of industries in the global industrial chain has been a difficult problem faced by Japan, South Korea and Hong Kong and Taiwan.

As the first step in the development of the mainland's industry, the inevitable pition pains just come earlier.

But earlier, it also means greater challenges and opportunities.

People pay attention to the Pearl River Delta, people bless the PRD.