Political And Economic Thinking Of World Shoe Capital Pformation In Dongguan

From the beginning of this year, Dongguan has always been at the centre of public attention.

The biggest concern is probably how many businesses Dongguan has collapsed so far.

Is the economy of Dongguan hard hit?

A few days ago, Dongguan mayor Li Yuquan said publicly that there was no business failure in Dongguan.

From 1 to October this year, 7149 enterprises in Dongguan were closed down or moved out. Most of them were enterprises under the contract capital of one million dollars.

Among them, 689 enterprises were shut down (more than 80 due to the expiration of the lease agreement), all traditional labor intensive enterprises.

Li Zhongyan, chairman of MEIKO Technology Co., Ltd., said: "considering all kinds of factors such as statistical caliber and so on, we can estimate the number of bankrupt enterprises to more than 1500, average to towns, and more than 50 out of every town.

There are about 1700 enterprises in Dalang Town, and the overall impact is small. I estimate that there will be about ten or twenty.

If Dongguan really went bankrupt more than 6000 like the outside world, what is the concept?

Each town closed down more than 200.

This is impossible. "

Although statistics are confusing, Dongguan's economy is having problems, which is an indisputable fact.

As for the shoe industry, Dongguan has been seriously affected.

We estimate that from July 2007 to June 2010, the whole industry situation is that about 30% of enterprises will go bankrupt, and 50% of enterprises will swing between profits and losses, and the business life of 10%~15% will be better than before.

Li Peng, editor in chief of the footwear association of Asia and editor in chief of the Asian footwear industry, told reporters.

Li Peng set foot in shoe industry in Dongguan in 1995, witnessing the rise, prosperity and downtrend of Dongguan footwear industry.

Li Zhongyan believes that Dongguan's foundation is relatively thick, private enterprises are relatively low-key, and their net assets are relatively good. Some labor-intensive enterprises in Dongguan may be greatly affected, but Dongguan enterprises will not be hardest hit.

Some analysts also believe that the current collapse of enterprises will not shake Dongguan's industrial base, because the key electronic industry cluster in Dongguan's economy is still stable.

In the bankrupt enterprises, Li Zhongyan thought the situation was rather complicated and needed further analysis: "there are several kinds here.

Some may not be in the main industry, but in other areas, such as real estate or non-ferrous metal futures, and these two industries have fluctuated greatly in the past one or two years, so their business is prone to problems and even bankruptcy.

"Another part is Hong Kong and Taiwan enterprises.

Dongguan opened relatively early. Around 1985, Hong Kong and Taiwan entrepreneurs came to the mainland about 40 years old.

Now, over 20 years later, they are almost 70 years old, and the enterprises are not very small either. They often have 1000~2000 people.

Old people do not want to go any further.

Most of them live in Hong Kong and Taiwan for a month or two months. Their second generation is more than 30 years old. Most of them live and work abroad. They are unwilling to come to the mainland to inherit and manage these industries.

In this way, the factory does not make money, and even if the financial storm closes, it does not matter to the boss anyway. They have made a lot of money in the early years.

Such enterprises accounted for more than 30% of the enterprises in bankruptcy.

In many bankrupt enterprises, private enterprises should not be overlooked.

Most of these enterprises are based on primary OEM, and their ability to resist risks is relatively weak. They are prone to encounter crises in the face of economic turbulence.

"Every enterprise is faced with different situations and different experiences. Some enterprises are just having minor ailments, and they can overcome the escalation. Some enterprises have suffered from cancer for a long time. They were frozen to death when the financial crisis came this winter.

Many enterprises suffer from losses in their own management, and those with good management ability have stronger resistance.

Chen Xi, chairman of Dongguan two hair Plush Co. Ltd. and Hongkong Ping Ping gentleman, said: "therefore, no matter which level the enterprise is, whether it is foundry, OEM or independent research and development, it must work hard in management.

Such pformation or upgrading will become a natural thing. "

Yan Xiaoying, President of Dongguan Kangda Electrical and Mechanical Engineering Co., Ltd. is also optimistic about the future. Her company is one of the 56 backup listed companies supported by the Dongguan municipal government: "our company was founded in 1998, and has undergone pformation and upgrading in the past two or three years. From the traditional processing trade of mechanical and electrical products, it has been pformed into a new energy high-tech enterprise, and has certain independent intellectual property rights and large customer groups in the industrial chain, so that enterprises can enhance their ability to fight risks."

Jiang Lin, Professor of South of the Five Ridges College of Zhongshan University, suggested: "in the face of the global financial tsunami, enterprises must remain calm. First of all, we need to find out what is the cause of the difficulties, whether the financial tsunami or the governance structure of the enterprises themselves can not adapt to the development of the situation.

After all, pformation is a complicated systematic project. It is not a simple decision, but a conclusion after careful consideration.

When we can not control the external environment, only by attaching importance to and practicing hard work, can we enhance our competitiveness and adaptability.

In other words, this crisis is not necessarily a bad thing for Dongguan's economy.

Although the crisis may turn into an opportunity for Dongguan's economic upgrading, the government should keep a clear mind at this moment. It should not be too optimistic, but it will not be too pessimistic.

Professor Jiang Lin believes that at present, governments at all levels have issued intensive policies, which may be a bit flurried. "The government should be cautious in the current critical period. If the cause is unknown, if too many policies are introduced at the same time, the first thing is that the body function of the enterprise can not be borne. Two, different drugs may counteract their effects one by one, and the effect is half done."

There are many reasons for the failure of enterprises, and there are different opinions on what caused the current economic difficulties in Dongguan.

But behind these, the deep contradictions about Dongguan's administrative system are rarely mentioned, and it is the inherent conflict inherent in the unique administrative division structure of Dongguan that causes Dongguan's industrial structure to be "small, scattered and chaotic" and difficult to pform.

As a prefecture level city, Dongguan has jurisdiction over 4 streets and 28 towns.

This administrative division is only adopted in three cities in Dongguan, Zhongshan and Sanya.

The benefits of this kind of system were brought to the extreme after the Dongguan, the Hong Kong and Taiwan businessmen came to the extreme. In the process of attracting investment, the four wheels of city, town, village and group opened up horsepower in the process of attracting investment. Thus, the situation of "village and village ignition and household smoking" appeared, and now the 32 towns in Dongguan have entered the "national comprehensive strength of the thousand strong town rankings".

Generally speaking, people call this economic mode formed by this system "the economy of the princes".

Professor Jiang Lin of South of the Five Ridges College of Zhongshan University summed up its characteristics as centralization of administrative system and decentralization of economic system. The reason is that the town street government in Dongguan should provide public services for residents in its jurisdiction, including education, medical treatment, social order and so on, and the related expenses mainly come from town street finance rather than municipal finance.

Therefore, the government of the town street has great autonomy and voice in the economic affairs within its jurisdiction.

This system of administrative division has made great achievements in the early development of Dongguan, but it also contains many disadvantages. Every town, village and group have their own affairs, and lack of necessary co-ordination and planning, which inevitably leads to confusion and duplication of construction.

Especially today, in the face of the shortage of construction land and the pressure of environmental pollution in Dongguan, the defects of this administrative division have reached the point where it can not be changed.

As early as the second half of 2006, a special research group was set up in Dongguan to strengthen the study of administrative divisions.

But more than two years later, the government has not taken any substantive measures.

Professor Jiang Lin believes that this is a key step in the pformation of Dongguan: "the town street economy in Dongguan is at a high level of economic prosperity and manufacturing industry is still in its prime stage. There is no problem and even institutional advantages. However, the weakness of this system is obvious. That is, when there is no concentration of industries, especially when we emphasize the development of modern service industry and modern industry, we need a relatively centralized town to reflect the support of industrial services for upgrading and pformation of manufacturing industry. However, the existing town street management system is not conducive to creating such a town with modern industrial concentration."

The problem of "cutting the vassal" can not solve the fundamental problem. It is a typical way to reduce the number of administrative units, reduce the number of administrative units, and solve the problem of unsmooth government orders, so as to save administrative costs and improve the efficiency of resource utilization. This is a typical way of "cutting the vassal", and many experts have made similar proposals in the past 32 towns.

"The biggest characteristic of this way of thinking is to centralization of power by means of administrative coercion, strengthen the power of the municipal government and reduce the resistance of the town government," said Li Zhiyong, Secretary General of the Dongguan economic and Urban Development Research Council and editor in chief of the Dongguan economy. "If the 32 towns are reduced to 16 or 8, what has changed?

It only reduced the administrative units at the township level, but did not innovate the system design and operation plan for intensive utilization of resources.

The number and problems of village groups have not changed. The real problem is that land is tightly grasped by the village group and solidified. There is no distribution mechanism for sharing interests among the towns and villages. The resources can not flow well. As a result, the power is too big to force the small powers to do things, while the small ones try to resist them passively.

After "cutting the vassal", the interests of the game between the city and the town are reduced, and the number of dining teams has been reduced, but the root causes of the conflicts haven't really been solved yet.

What we need to explore is: without changing the realities of administrative divisions, is there a model that can unite the interests of cities, towns, villages and groups, and improve the comprehensive level of resource utilization from three angles of short term effect, medium-term effect and long-term effect through the idea of innovative institutional design?

We should reasonably evaluate the income rights of these rural collective construction sites, and determine the circulation ways of land revenue rights for different locations and different purposes. After that, we will pform the houses on the land into pieces, and integrate the factories in the same industry with scientific planning, relatively centralized, joint venture construction, unified management, and share based profits, so that we can concentrate on the factories of the same industry in the same town, and engage in the theme industrial parks or living areas in a village with relatively obvious advantages. This improves the investment intensity of the unit land area, and then improves the utilization efficiency of the land resources, further advances the advantages of the dominant industries and the integrity of the industrial chain, and changes the marginal cost of the single enterprise to the marginal cost of the similar enterprises. In this regard, Li Zhiyong suggested that a new mechanism of cooperation be formed through full consultation between towns, villages and groups.

From the point of view of pollution control, pollution from different sources of different enterprises has become homologous pollution of similar enterprises. The problem of pollution control by different enterprises has turned into a public pollution control problem of a theme Industrial Park, greatly reducing the cost of pollution control of a large number of similar enterprises, improving the level of pollution control and recycling, and receiving the comprehensive benefits of economic and social development.

"In this way, the mechanism of resource utilization can be innovated, and the efficiency will be greatly improved. The conflict of interests that restricts the economic and social development of Dongguan will be solved. The allocation of resources in Dongguan will be more optimized. Is this a natural pformation?"

Yang Jing: editor in charge