China'S Textile And Garment Exports Continue To Be Weak, Pearl River Delta Business Contraction

September 6th, China's economy slowed down significantly, Guangdong Province in July

The figure increased by 3.3% annually, far below the average growth rate of 6.2% in the first half.

It is expected that China's exports in the third quarter are still not optimistic. In the next 5 years, about 30% of Hong Kong businessmen will face business contraction or withdrawal from Guangdong.

Since 2011, more than 4000 Hong Kong businesses in the Pearl River Delta region have been evacuated or contracted, accounting for about 10% to 15% of the total. The textile, clothing, electronics, toys and household appliances industries are most affected, while the clock and fur manufacturing industry is more stable.

According to China's data, the annual export growth of Guangdong's exports in July was only 3.3%, far below the average growth of 6.2% in the first half of the year, and the processing industry dropped by nearly 20% on average.

In addition, Dongguan, which has the largest number of Hong Kong businessmen, has the worst economic performance, with an annual increase of only 2.5%.

The European economy is still very weak. Although the US economy is showing signs of recovery and is better than Europe, the situation is still not very good.

Therefore, the export situation in Guangdong will not improve for a period of time. It will only continue to be weak for the time being. There is still no high expectation for the next one to two years.

It is predicted that 30% of the Pearl River Delta businessmen will gradually shrink, collapse or move out in 5 years.

Hong Kong businessmen

Export orders for garments have been reduced by 5% to 30%. From 2011 to now, there are about 10% to 15% of Guangdong's Hong Kong businessmen shrinking. Apart from their failure, they are partly moving to other inland provinces or Southeast Asia.

Since the beginning of this year, the orders received by Hong Kong businessmen have been reduced by 5% to 30% compared with the normal level. Among them, Hong Kong businessmen are mainly affected by European customers, and the industries producing textile, clothing, electronics and toys are the most affected.

Guangdong is still facing labor shortages and high production costs. It is estimated that the local government will not raise the minimum wage level during the year.

The Guangdong provincial government will also launch a policy of supporting Hong Kong enterprises. However, the Dongguan local government, which is concentrated by Hong Kong enterprises, has not made much progress in assisting Hong Kong enterprises to upgrade and pform their policies.

In addition, competition from other Southeast Asian countries is also increasing, such as production in Kampuchea and Bangladesh.

Only half of China.