"Hollow Industry" Interrogates The Survival Soil Of "Made In China"

suffer financing . Affected by factors such as higher labor costs and large fluctuations in raw material prices, small and medium-sized enterprises in coastal areas are facing financial crisis A new round of survival dilemma. The reporter's investigation found that although it was too early to assert the "closure tide" of small and medium-sized enterprises in coastal areas, some enterprises were in fact in a "false closure" state due to multiple factors. Some small and medium-sized enterprises facing the survival crisis have begun to shift away from their main businesses. On the other hand, in some coastal areas, traditional manufacturing industries have shrunk while emerging industries have not yet been cultivated. A large number of small and medium-sized enterprises are enthusiastic about property and stock speculation, but their enthusiasm for investment in industry is not high. Many enterprises have moved out of the province and abroad, showing signs of "industry hollowing out". Some experts and business owners suggested that we should make up our minds to follow the trend eliminate While a number of backward production capacity, the government should increase efforts to support a number of high-quality enterprises in a differentiated manner to avoid the continued weakening of the confidence of a large number of private SMEs in the industrial field. In view of the current situation, the government urgently needs to introduce relevant policies focusing on supporting the industrial chain to curb the further intensification and spread We should take precautions against the danger of bubble economy.

　 Enterprises are keen to earn fast money, and manufacturing industry appears“ Hollowing ”Seedy head

"I have only become a millionaire for 25 years, and the real estate industry can create a group of millionaires overnight. Doing industry is like eating thin bones, and investing in real estate is like eating fat meat, so there is a phenomenon of 'big entrepreneurs investing in real estate, small business owners buying houses to hoard'." Chu Jiwang, chairman of Ningbo Ruyi Co., Ltd., said that the extreme profits of real estate, Many entrepreneurs are unwilling to do business, but they use their money to invest in real estate.

Zhuo Yongliang, director of Zhejiang Development and Reform Research Institute, said that at present, we need to be alert to the signs of industrial hollowing out in Zhejiang: on the one hand, a large number of industrial capital spillovers in Zhejiang have turned into private hot money into real estate and financial investment, which is insufficient to feed back industry; On the other hand, since the financial crisis in 2008, some traditional industries in Zhejiang have migrated to the central and western regions of China, Vietnam and other Southeast Asian countries, or experienced industrial shrinkage.

A recent report of the Institute pointed out that an obvious feature of Zhejiang's economy this year is that investment in manufacturing has declined significantly, but investment in real estate has increased against the trend. In the first five months, the province's fixed asset investment grew 26.2% year on year, the highest growth rate since 2005, 7.2 percentage points higher than the same period last year.

From January to May, the manufacturing investment grew by 15.3% year on year, 7.4 and 2.2 percentage points lower than the first quarter and the same period last year, respectively. On the contrary, the investment in real estate development has increased by 44.4%, breaking through the highest value in the past six years and contributing 46.3% to the investment growth. The proportion of real estate development investment in fixed asset investment above the designated size has increased to 30.9%, while the national average is 20.8%, and Shandong and Jiangsu are only 17.4% and 20.1% respectively.

Zhuo Yongliang said that under the strict control policy, the real estate investment in Zhejiang Province is still growing at a high speed. In addition to the common reasons such as the lagging construction progress and the policy constraints of starting construction within a specified time limit, the practice of financial institutions to "not abandon, not give up" real estate enterprises is an important factor, and this situation is rare in the country. From January to May, the growth rate of domestic loans, the source of investment funds for real estate development in Zhejiang Province, was 12.2%, only 3.2 percentage points lower than the same period last year. However, the growth rate of real estate loans in the whole country and coastal provinces and cities decreased by more than 20 percentage points, and Jiangsu and Guangdong even decreased by 43.5 and 50.6 percentage points respectively, showing negative growth.

In addition, "the vast majority of garment enterprises in Wenzhou are doing diversified investment. If they have the strength to develop their own real estate, small enterprises will become property speculators." Xu Zhengjie, chairman of Zhejiang Kuoshai Clothing Co., Ltd., said, "Many Wenzhou couples, their husbands have worked hard to earn more than 100000 yuan in a year when they opened their factories, and their wives earn millions of yuan when they buy a suite. This gap can't help but stimulate everyone to earn fast money."

The reporter interviewed the secretaries general of 10 industry associations in Yueqing City, Zhejiang Province, including the Electronic Industry Association. The heads of these associations representing more than 2000 enterprises concentrated on reporting that at present, many enterprises have the phenomenon of "three thirds system" of investment, that is, industrial investment accounts for one third, and real estate, stock and securities account for another third. "It shows that the factory operation rate is insufficient, and the entrepreneurs shout that they have no money, but in fact, a lot of money is invested in real estate and stock speculation," said Wang Zhulin, secretary-general of Yueqing Electronic Industry Association.

The reporter learned from the investigation that a group of people in coastal areas who "get rich first" have been reluctant to gain property appreciation by doing industry. Not only Wenzhou people in Zhejiang Province, but also all over the country have assets foam The culture is becoming more and more serious.

Huang Jinde, the chairman of Ningbo Huaxing Tire Co., Ltd., located in Cixi City, said: "A series of pressures, such as difficult financing, expensive labor, rising material prices, and RMB appreciation, have become prominent. The current situation makes many bosses afraid and dare not invest in industry. My enterprise used to have more than 800 employees, but now it has been reduced to more than 400."

Huang Fajing, president of Wenzhou Cigarette Industry Association, said that the metal lighter industry, which once accounted for more than 90% of the national output, is now facing a contraction of the whole industry. There were more than 500 lighter enterprises in Wenzhou before 2008, but now there are less than 100, and only one third of the bosses who concentrate on business. "They have shifted their focus to other industries, such as real estate, minerals and the tertiary industry." {page_break}

The "hollowing out" of the industry is threatening to spread bubble economy a precursor

"In the first two years, in the real estate market, and recently in the capital market, under the stimulus of overnight wealth, more and more private entrepreneurs in Wenzhou have given up their main business to kill them, which not only increases the house price, but also makes more enterprises follow the trend of investment. The risk of bubble economy arises from this," said Zhou Dewen, president of Wenzhou SME Development Promotion Association, The emergence and spread of the "hollowing out" of industry will lead to more capital withdrawal from the industrial economy and stimulate the rapid "bubble" of assets.

Other experts believe that Zhejiang private enterprises, which mainly completed their original accumulation through manufacturing in the early stage, are easily bound up with various market-oriented "hype" when encountering the "bottleneck" of industrial development. In addition to the well-known "Wenzhou Real Estate speculation group", in recent years, there have emerged "Cixi Cultural Relics Group", "Lishui Hydropower Group", "Zhejiang Trademark Group", "Yongkang Real Estate Building Group" and other "non business" "hot money speculation groups" all over Zhejiang. The latest follow-up of the General Office of Zhejiang Provincial Department of Commerce to more than 1700 foreign trade enterprises shows that about 20% of the enterprises' main business profits account for less than 20% of the total profits, presenting a phenomenon of "marginalization of enterprises' main business".

In the first half of this year, manufacturing enterprises such as Jiangnan Leather, Sanqi Group, Zhuguang Group and Tianshi Electronics went bankrupt in Wenzhou and Taizhou.

Zhou Dewen, president of Wenzhou Small and Medium sized Enterprises Investment Promotion Association, said that there are about 360000 small and medium-sized enterprises in Wenzhou at present, of which 20% are in the state of semi suspension or shutdown. The reporter saw in the workshop of Zhejiang Kangerle Electronics Co., Ltd. that this small enterprise with annual sales of about 10 million yuan only started 60% load operation. "According to the current trend, after the Spring Festival next year, 40% of coastal small and medium-sized enterprises may shut down or semi shut down," Zhou Dewen said.

Some experts also believe that the hollowing out of the industry and the enthusiasm of enterprises to earn fast money will also promote the large-scale development of private usury. At the same time, the development of usury in turn has accelerated the hollowing out of the industry. For a long time, private capital has become rampant. Going everywhere to stir up the prices of goods that can be stir fried will accelerate inflation.

However, some local government officials believe that diversification and industrial transfer are inevitable for the transformation and upgrading of economic structure at a certain stage of economic development. Zhang Zhenyu, director of Wenzhou Municipal Finance Office, said that in economically developed places like Wenzhou, the real economy is to shift a little and then introduce high-end ones, such as vigorously developing the financial service industry.

Zhuo Yongliang said that in the process of industrial structure development, if we deviate from the actual level of productivity and science and technology, ignore or even abandon the original industry, it is likely that the old and new industries will be "out of business". Zhejiang

The economy is already in the period of accelerated transformation of the industrial structure. We should pay special attention to the convergence of new and old industries. We should not only vigorously cultivate emerging industries and develop high-tech industries, but also strive to upgrade traditional industries, otherwise there will be economic weaknesses.

　 The survival pressure of four types of small and medium-sized enterprises is high

The reporter found that, from the perspective of enterprise scale, the most prominent "survival crisis" of enterprises at present is the small and medium-sized enterprises with operating income of less than 20 million yuan and employees of less than 200 people, while most of the medium-sized enterprises with strong financing and innovation ability are operating well.

However, according to what Economic Information Daily reporters learned in the three coastal provinces, many business owners believe that they are currently facing "the most difficult survival period in history". According to the types of enterprises, four types of enterprises have the greatest pressure to survive at present:

First, "raw material dependent enterprises" refer to enterprises with high proportion of raw materials in product costs. The reporter's investigation found that this problem is common among the trapped SMEs in hardware, cotton textile, furniture and other industries. Zhao Liwen, the deputy general manager of Tianyin Alloy Technology Co., Ltd., located in Liushi, Yueqing, Zhejiang, the "capital of low voltage electrical appliances in China", said that 30% of the orders had been pushed off this year, which has never happened since the factory opened for more than 20 years. "In April, the silver price soared to more than 10000 yuan per ton, and the factory almost collapsed. Now the profit is only 5%." Due to the shortage of funds, the raw material of pure silver in the inventory of Tianyin Alloy has dropped from 2 tons to 200 kilograms, which is often used up today and bought tomorrow.

The second is "traditional low profit manufacturing enterprises". Enterprises generally reflect that the difficulty of survival lies in the fact that the prices of labor, raw materials and other production factors have risen in succession, making the already meagre profits zero. As the largest traditional industry in Zhejiang Province, textile enterprises are generally facing this problem. At present, the general profit of Zhejiang textile industry is still around 5%. In addition, the difficulty of loans has forced some enterprises to raise funds from the private sector. Calculated by the lowest monthly interest rate of three cents in Wenzhou, the one-year interest rate still reaches 36%, which is more than 7 times the production profit of the textile industry. The profits obtained in the manufacturing industry will not fill the "pit" of usury, and will eventually force enterprises to go to the end.

Third, "enterprises with shrinking demand and overcapacity". The reporter learned in Wenzhou that there were more than 4000 lighters at the peak of the local lighter industry, and more than 500 on the eve of the financial crisis in 2008. Now there are only about 110 lighters, and only one third of them are still settled in the production of lighters. "More bosses only take the enterprise as a financing platform to keep it alive," said Huang Fajing, president of Wenzhou Smoking Utensils Industry Association.

However, some emerging industries that have blindly switched to traditional industries are also facing the crisis of overcapacity. According to statistics, the number of enterprises engaged in LED product R&D and production in Hangzhou increased rapidly from 16 in 2000 to 179 in September 2010, more than ten times. However, demand did not grow at the same speed, and signs of industrial surplus began to emerge.

The fourth category is "unqualified environmental protection enterprises" and "backward production capacity enterprises". After the blood lead incident in Deqing City, Zhejiang Province in May this year, Zhejiang Provincial Environmental Protection Department sent 10 inspection teams to carry out carpet inspection on all 273 battery enterprises registered in the province, of which 213 enterprises were ordered to stop production for rectification. Affected by this, some battery enterprises are unable to complete product orders and face operating difficulties after suffering from liquidated damages. The list of enterprises with backward production capacity released by the Ministry of Industry and Information Technology in July includes more than 2200 enterprises. Among the cement and paper industries involved, more than 1000 enterprises are facing elimination, most of which are small and medium-sized enterprises. {page_break}

It is also understood that in the Pearl River Delta region, many enterprises are basically in the state of "simple reproduction" due to "no profit after receiving orders". In Buji, Shenzhen, a person in charge of an enterprise specializing in foreign trade OEM, surnamed Wang, said that in the past year, it could process up to several hundred thousand pieces of clothing, but the output in the first half of this year was less than 5000 pieces. "Now it is impossible to accept more orders, or not to accept them at all. Once the equipment is stopped and restarted, it may not work."

The relevant person in charge of the Finance and Economic Commission of Zhejiang Provincial People's Congress said that from January to May this year, the profits of industries above designated size in Zhejiang Province increased by 33.7% year on year, but the profits were mainly concentrated in large enterprises and groups. Zhang Wenwen, director of the Guangdong Provincial Bureau of Small and Medium Enterprises, said that the added value of small and medium-sized enterprises in Guangdong Province from January to May maintained a double-digit growth, and the added value exceeded the provincial average by 11%. "This shows that most of the closed enterprises are small enterprises and micro enterprises, which have little impact on the overall output value."

　 Expert suggestion: adjust the industrial policy and optimize the "survival soil" of "Made in China"

During the interview, the reporter learned that a group of government officials, experts and entrepreneurs generally believed that the phenomenon of "industrial hollowing out" in Zhejiang was not only emerging this year, but the current difficulties facing the manufacturing industry may exacerbate this trend. The fundamental way to avoid "industry hollowing out" is to optimize the survival soil of manufacturing industry and strengthen the development capacity of manufacturing industry.

Shi Jinchuan, a professor at the School of Economics of Zhejiang University, believes that to solve the problem of "hollowing out" of the industry, the first thing is to fundamentally solve the survival dilemma of Zhejiang's small and medium-sized enterprises. Industrial transformation and upgrading and technological innovation are imperative. Chen Dongqing, chairman of Wenzhou Jingyi Group, believes that the general direction of this round of national macro-control is to promote the transformation and upgrading of enterprises, but the key is to see the implementation everywhere. Now there are also competitions among provinces and regions within the province, so they may spare no effort to help their own regional economy, which may form resistance to central regulation. "Therefore, the local government should maintain the pressure, and the local government should not be biased."

Entrepreneurs appeal that in implementing the overall plan of the central government to support SMEs, local governments should not always focus on individual enterprises, or just rely on a few major projects, hoping to use major projects to generate radiation and drive the surrounding areas. It is necessary to study the characteristics of a local industrial chain according to local conditions, and make every link in the industrial chain get inclusive support from the perspective of supporting the upgrading of the industrial chain. Make regional competition a benign competition of industrial clusters, not just competition among enterprises.

Ni Mengxuan, chairman of Zhejiang Nanyi Gift Co., Ltd., said that to support the upgrading of the industrial chain, specifically, the government should encourage brand enterprises to purchase from the local industrial chain, and can provide support in tax feedback; For enterprises that use financing for enterprise upgrading, industrial upgrading, and the introduction of high-tech to transform the industrial chain, the government should also give preferential policies in terms of taxes and land use.

Entrepreneurs also suggested that at least provinces should be taken as a unit to sort out the regions where key industries and pillar industries are located, refine management, treat differently, and further promote transformation and upgrading, and conduct assessment. Only by making the industrial chain bigger and stronger as a whole, each enterprise has a strong sense of attachment and destination, and the "hollowing out of industry" will be effectively curbed.

In addition, relevant people also suggested that in order to promote industrial transformation and upgrading, all regions in China must be treated equally in terms of industrial policies and can no longer adhere to the "gradient development" strategy. Zheng Yumin, director of Zhejiang Administration for Industry and Commerce, said that the long-term "gradient" has made backward production capacity less urgent, and repeated the "cloning" of backward production capacity and low-cost strategy everywhere, instead of following the innovative path of "learning from the best" industrial upgrading, so that the model and production capacity that should have been "farewell" will continue to flourish. At a certain time, there will be a tide of bankruptcy The phenomenon of "collective suicide" of enterprises.