Earthquake Will Not "Shake" And "East Shoes Shift Westward" Confidence

Experts said: the new policy of the redevelopment area will enhance its attractiveness to coastal enterprises. With the approaching conclusion of the 7.8 magnitude earthquake rescue work in Wenchuan, Sichuan, people began to think about the damage caused by the earthquake to the local economic development.

In the textile and garment industry, as an important province in the Midwest of China to undertake coastal industrial pfer, will Sichuan be passively engaged in the textile and garment industry pfer due to the earthquake, and it is becoming one of the focus topics discussed by the industry. In view of some people, the outbreak of the earthquake may magnify the enterprises' concern about whether Sichuan is safe or not, thus causing Sichuan and the five main provinces in the central part of Anhui, Hunan, Hubei, Jiangxi and Henan to be passively involved in the competition for the pfer of the coastal textile and garment industry.

Will such worries become a reality?

The earthquake is only a temporary factor. The devastating force of the earthquake is so alarming that people may be worried about whether Sichuan is safe. The pessimistic argument is that under the shadow of the devastating force of the strong earthquake, people have clearly remembered the insecurity in the Sichuan area. Not far from Chengdu is the crustal active zone. Whether there will be a next earthquake or other worries may become an obstacle for the coastal enterprises to shift their main industries to Sichuan.

Compared with the direct negative impact of the earthquake, such as the damage of some factories caused by the earthquake, and the serious destruction of infrastructure and logistics system, Sichuan's ability to undertake industrial pfer will be affected for a short time. The insecurity of those enterprises that may be stationed or even move to Sichuan will be the long-term impact of the earthquake.

Such effects are often intractable, but they can not be completely resolved in a short time.

Even this long-term impact may lead to more associations about natural disasters in Sichuan, such as drought rarely seen in previous years, and then classify these disasters from subjective judgment as the ability defect of Sichuan to undertake industrial pfer.

Although these conjectures do not seem to have much scientific support, the aftermath of this disaster is understandable.

Will such worries in the future be seen in coastal enterprises that will still be in the process of industrial pfer?

More answer is negative. AOKANG administration center Wang Hailong made a simple comparison with Tangshan, Hebei. He thought Tangshan's economic development did not stagnate after the great earthquake. Therefore, the earthquake did not cause long-term and fundamental impact on the local economy. "For Yu Aokang, our confidence in investing in the West has not wavered. The possibility of the outbreak of natural disasters such as earthquakes is not a key factor determining whether we invest or not. We are not too frightened by the destructive force of the earthquake."

As the largest private shoe manufacturer in China, AOKANG's industrial pfer has already been carried out. They have already built the first stage project of China Shoes Capital Industrial Park built in the disaster zone of 7.8 strong earthquake in Wenchuan.

Cao Xinyu, vice president of the China Textiles Import and Export Chamber of Commerce, has constantly stressed to the outside world that the impact of the earthquake on Sichuan's undertaking industrial pfer will be limited to a very short period of time. "The earthquake is only a temporary factor, rather than a long-term factor, which may slow down the industrial gradient pfer plan, but it will not change the fundamentals. Sichuan's advantages in undertaking industrial pfer still exist."

Sichuan's strength also believes that Sichuan will not be dragged down by the earthquake and still has strong confidence in Sichuan's industrial pfer. Textile and garment enterprises, which have strong confidence in Sichuan, have not been overly worried about the outbreak of natural disasters such as the earthquake. They think Sichuan is not inferior to its main rival in the five central provinces.

In fact, from a certain point of view, Sichuan's many unique advantages in undertaking the pfer of textile and garment industry are the main reasons why many textile and garment enterprises "forget" the earthquake.

Compared with the provinces of Jiangxi, Hunan and Anhui, which are closer to the coastal textile and garment industry base, the biggest advantage of Sichuan is its own market capacity and effective radiation to the western market.

In fact, the main purpose of many textile and clothing and shoemaking enterprises to build factories in Sichuan is not to look at their production capacity, but to sell locally to reduce circulation costs.

The most typical example is the double star group. Half of its income from shoes and clothing industry comes from its sales contribution to the southwest market with Chengdu as its center. Therefore, when the two stars decide to build factories in Sichuan, it is more about industrial pfer rather than matching market needs.

And the YOUNGOR group, which chooses to invest in the region (including Chongqing), is mainly concerned with the ability of the region to radiate the market in Western China.

The advantages of undertaking industrial pfer in Sichuan area include a certain industrial base, such as Chengdu is a famous women's shoes production base in China, and sufficient raw materials and relatively low price labor supply.

But among them, the most attractive policy for coastal enterprises in the future may be preferential policies. Especially after the Wenchuan earthquake of magnitude 7.8, many analysts believe that Sichuan may introduce more favorable policies to help local economy recover, especially to undertake industrial pfer in coastal areas, so as to help the local through the post disaster reconstruction.

Experts say that, according to past experience, policies for redeveloping areas are often based on the rapid recovery of local economic development. In the process, in order to enhance the attractiveness of these areas to coastal enterprises, including taxation, the Sichuan region may introduce policies that are more conducive to undertaking industrial pfer, which will further enhance the confidence of the western enterprises in the service industry.