347 Foreign Companies In Guangzhou Shut Down Last Year

The special investigation report of Guangzhou foreign trade and Economic Cooperation Bureau shows that: 347 foreign enterprises closed and relocated last year, and 959 new foreign-invested enterprises were approved during the same period. Experts believe that the relocation of traditional manufacturing industry is conducive to the upgrading of enterprises and the rising cost of operation.

Liang Wenxiang Liang Weipei photo related reading: revealing the truth about the relocation of enterprises in the PRD for the recent rumors of the relocation of some enterprises in the Pearl River Delta region, the Guangzhou Municipal Foreign Trade and Economic Cooperation Bureau recently reported that the relocation is only a small number of enterprises in some industries in Guangzhou. The number of closed and relocation enterprises growing year by year is normal and belongs to the normal scope of industrial gradient pfer.

According to investigation and analysis, the closure of relocation of Guangzhou's foreign-funded enterprises has always existed in the new round of international capital and industrial gradient pfer, not last year.

However, the enterprises closed or moved mainly concentrated in the traditional labor intensive industries, which did not affect the core competitiveness of Guangzhou's industries. On the contrary, they provided opportunities for industrial upgrading and upgrading.

According to the survey report, 53 foreign investment enterprises expiring in 2007 and 294 enterprises with foreign capital contracts terminated earlier.

Hong Kong and Taiwan are small and labor-intensive traditional manufacturing industries. They are mainly concentrated in textiles, clothing, shoes, plastics, hardware, etc.

The reporter noted that statistics from 2005 to 2007 showed that the number of foreign investment enterprises in Guangzhou terminating (including expiration and termination) was 193, 148 and 347 respectively. The number of newly approved foreign-invested enterprises was 1061, 1025 and 959 respectively.

Statistics show that the total number of foreign invested enterprises in Guangzhou has maintained a steady growth.

At the same time, in 2007, 675 foreign-invested enterprises in Guangzhou increased investment, and the additional investment accounted for 62.5% of the city's attracting foreign investment, indicating that a large number of foreign invested enterprises were optimistic about investing in Guangzhou.

The reason is that the cost increases by 20% to 30%. Some enterprises are unable to bear the findings of the investigation report. The early termination and relocation of foreign investment enterprises are different, but the main reason is the trend of industrial gradient pfer, the rise of business costs and the tightening of foreign investment policies.

New industries and regions; in the 80s of last century, these industries were gradually pferred to mainland China and other Southeast Asian countries, and the Pearl River Delta region, including Guangzhou, gradually developed into the "world factory" rule. With the further development of Guangzhou's economy and the further improvement of industrial structure, the problem of relocation of enterprises which was not suited to it also emerged. For example, the small-scale candle factories and plastic flower factories in Guangzhou at the early stage of reform and opening up have long been history, and the large shoe factories that flourished in Guangzhou in the early 90s of last century have also been changing. Typical representatives, such as the Haifeng shoe company established in Tianhe District Pearl River New Town in 1994, have moved to Zengcheng in 1999 because of urban development, and in the past two years, the new production line has been moved to the mainland provinces and Vietnam. According to the survey report, "some labor-intensive products in developed countries such as Europe and the United States in the 50s and 60s of last century were pferred to China, Taiwan and Hongkong.

In addition, the rising cost is the main reason for the closure of enterprises.

Over the past year, the operating costs of enterprises, especially export-oriented enterprises, have risen sharply: the price of raw materials has continued to rise, the processing trade policy has been tightened sharply, the export tax rebate rate has been cut down or even canceled, the RMB has continued to appreciate, the labor cost has been raised, the land price and housing prices have been surged, and so on, resulting in an increase in the total cost of enterprises up to 20 - 30%, while the sales price of the same period has increased by only about 5%, and the profit margins of enterprises have been seriously compressed. Some enterprises have been unable to continue to maintain normal operations by reducing operating costs and optimizing internal processes.

According to the survey report, with the implementation of industrial upgrading and industrial pformation policy such as "cage changing birds" and "retreating the two into three", the phenomenon of industrial pfer will continue, and there will be a gradual shrinkage of Guangzhou's factories in the future.

Impact: industrial gradient pfer in normal range does not affect the core competitiveness of the industry. According to the research report, the closure of foreign-funded enterprises in Guangzhou is still normal. Relocation is only a spontaneous behavior of a few enterprises in some industries. It is a specific manifestation of industrial gradient pfer. It belongs to the normal range of industrial gradient pfer. It has not had a significant impact on Guangzhou's industrial development, and has not affected Guangzhou's core competitiveness.

The Guangzhou Municipal Foreign Trade and Economic Cooperation Bureau believes that some low-end and labor-intensive foreign-funded enterprises will be closed to the outside world to provide opportunities for Guangzhou's industrial upgrading and upgrading.

On the one hand, we can make some room for development to solve the problem of very tight industrial land resources.

On the one hand, it can be used to develop modern service industry to promote the optimization of foreign investment structure in Guangzhou.

In addition, the early termination and relocation of such enterprises will reduce the production of "two high and one capital" (high pollution, high energy consumption and resource) products in Guangzhou, improve the export structure, promote the pformation and upgrading of processing trade, and achieve sustainable economic development.

Countermeasures: according to the investigation report of developing headquarters economy according to the situation, it is revealed that in the early termination and relocation of foreign-funded enterprises, Guangzhou will take different measures to guide different targets.

For highly energy intensive and resource intensive enterprises, they should actively encourage and guide. For labor-intensive small enterprises with low added value and no complete industrial chain forming in the region, they will have little influence on closing down and relocation. The labor-intensive enterprises with large scale and already formed a more complete industrial chain should try to help them tide over the difficulties, promote their industrial upgrading, or pfer the low-end processing links to develop high-end businesses such as R & D, design and marketing in the local area. For enterprises with high technology content and in line with the development direction of Guangzhou's industry, we must create conditions and make every effort to let them stay, and solve the difficulties encountered by these enterprises in a case by case manner.

While guiding the pfer of low-end links in some labor-intensive industries, Guangzhou will also increase investment in target industries, and focus the limited resources on projects that will bring huge impetus to Guangzhou's future development and promote industrial agglomeration.

The high-end links of labor-intensive enterprises that have already formed industrial chains in Guangzhou remain in the city, and create conditions for the separation of "office" and "workshop", and create a strong radiation manufacturing headquarters base in Guangzhou.