"Machine Replacement" And "Cage Changing Birds" To Allow Enterprises To Pform

The recent closure of Dongguan's manufacturing industry is called the second wave of closure.

In 2008, affected by the international financial crisis, Dongguan's manufacturing industry, which relied heavily on foreign trade, encountered cold currents.

According to media reports, only a few hundred toys were left in Dongguan's more than 3500 toy factories, forming the first wave of "collapse" in Dongguan enterprises.

"Never give it to Dongguan again."

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A Dongguan official said that a year ago Dongguan was labeled as a "sex capital" label, and people in Dongguan would think of "Guan style service".

In fact, the core of Dongguan is manufacturing, while the service industry is only a product attached to manufacturing prosperity.

The official emphasized to reporters that we should treat Dongguan's factory closures in a rational way.

He said that in recent years, the closure of Dongguan factories was different from the "closure tide" before and after 2009. The closure of these enterprises is the survival of the fittest in the market. It is also the result of Dongguan's 6 years of "cage changing for birds" and the pformation and upgrading of industries into deep water areas.

The official, who asked for anonymity, said that on the one hand there were business failures, but on the other hand, there were many new businesses in Dongguan.

Besides famous factories in Dongguan, many new high-tech companies are registered in Dongguan.

"The key depends on whether the economy of Dongguan is going backward."

The official said that in the past 6 years, 5 years in Dongguan were "single digit growth", and even 4 years had not yet completed the GDP growth target set at the beginning of the year, but the overall economy continued to grow steadily.

He said, we should see that the total annual GDP of Dongguan has exceeded 500 billion yuan, and it will increase two digit as before. "This is unrealistic."

In October 28th this year, Dongguan mayor Yuan Baocheng met with 23 media at home and abroad.

Yuan Baocheng said that in 2015, 243 enterprises in Dongguan closed down and moved out, involving a contract amount of US $330 million, and 698 new foreign-funded projects in Dongguan, involving 3 billion 850 million US dollars in contractual foreign capital utilization, an increase of 17.7% over the same period last year.

This data shows that Dongguan's foreign-funded enterprises have gone bankrupt and migrated, but new foreign-funded enterprises and projects are also increasing. Dongguan's economic development is in a steady growth.

Prior to that, Yuan Baocheng also said publicly that most of the recent outsiders concerned about the bankrupt enterprises were smart phones or their manufacturers of mobile phone components. This is the survival of the fittest in the market economy, and does not mean that the manufacturing industry is facing a crisis as a whole.

For Dongguan's economic growth,

It is characterized as "the new normal of Dongguan's economy".

Yuan Baocheng said that Dongguan is gradually switching from high speed growth to a new medium and high speed gear with more quality, efficiency and stamina. "This process overlapped with the international financial crisis impact, pformation and upgrading, and labor pains."

Faced with the plight of reality, Dongguan authorities began to vigorously promote the "machine substitutions" campaign.

According to relevant reports, the municipal government set up a special fund for machine replacement in Dongguan. From 2014, it invested 200 million yuan a year for a total of 600 million yuan for 3 consecutive years, supporting the implementation of "machine substitution", and the highest subsidy rate could reach 15% of the total equipment.

According to the relevant person in charge of the Dongguan Municipal Bureau of information, the promotion of "machine substitution" in Dongguan can not only alleviate the situation of insufficient employment and rising labor costs of manufacturing enterprises in Dongguan, but also enhance the competitiveness of enterprises, accelerate the pformation of labor-intensive enterprises to technology intensive enterprises, and promote the quality of employment personnel, and promote the upgrading of Dongguan's entire city.

"Retreat and stay is a strategy for upgrading Dongguan's manufacturing industry. There are nearly 30 SMEs in Dongguan. It is impossible for every company to carry out machine pformation. This is unrealistic. There will be a number of enterprises withdrawing."

Some scholars have analyzed the closure of Dongguan factory.

Another big move in Dongguan is "changing the cage and changing birds" to allow enterprises to pform and upgrade.

An official said that since the reform and opening up, Dongguan has always been dominated by the foreign trade processing economy, and has also laid the status of "world processing plant". However, most of these enterprises in Dongguan belong to OEM or OEM. There are not many independent brands, and high value-added and huge profits are taken away by brands.

The so-called "Teng cage for birds", that is, the existing traditional manufacturing industry from the current industrial base "pferred out", and then "advanced productivity" to pfer in order to achieve economic pformation, industrial upgrading purposes.

Zhang Jie, a boss of a glass mirror production company in Dongguan, is a successful plator.

He made plasterboard in Dongguan three years ago.

Zhang Jie said that his products are sold throughout the country.

But with the regulation of the national real estate market, his enterprises began to go downhill.

He thought of pformation.

He learned that laser lenses are currently a cold door, and few enterprises produce, but this lens is widely used.

So he introduced 6 PhDs from universities and began developing his own laser lenses.

"Now I have more profits every year than I used to make plasterboard."