SMEs in the Pearl River Delta fell through the ice

 Macro Group Han Jingyan researchers
nearly three months, the Pearl River Delta region a large number of small and medium export enterprises closed down, while the closure of many enterprises in the recessive state, is expected after the Lunar New Year, there will be a large number of dominant companies closed down or relocated. Is What factors cause these enterprises are faced with such a predicament? export-oriented SMEs how should it respond to the current predicament?
a large number of export-oriented SMEs in the Pearl River Delta Pearl River Delta region had to survive a difficult
bridgehead of China's opening up, the processing trade 40% of the national total. Guangdong Province, accounting for one third of the total imports and exports, dependence on foreign trade as high as 160.4 percent, since reform and opening the country to enjoy preferential policies in the region and the advantages of cheap labor to develop rapidly. PRD is the majority of Province, the economic center of a large number of processing to produce export products of SMEs mainly rely on foreign and international markets. Pearl River Delta region in Guangdong, processing trade accounts for more than 40% of the first three quarters .2007 in Guangdong, 20% of industrial value added so from toys, textiles, building materials and other traditional industries. despite Shenzhen, Dongguan and other places produced a large number of IT products, but products with independent intellectual property rights of only 3%, product sales and service network mainly foreign-controlled.
but the survival of the region into the plight of export-oriented enterprises. the past five years, slowing export growth in the region, export-oriented development is facing a bottleneck .2006, Guangdong's export growth rate of 26.8%, ranking No. 20, even lower than 27.2% national growth rate. In recent months, a large number of small and medium export enterprises have gradually closed down or relocated. It is estimated that about 6,000 shoe factories in Guangdong, there are nearly 1,000 .75% of the shoe factories closed in China since China or Vietnam, Burma and other places to set up factories, and gradually transfer.
small and medium export enterprises are facing pressure from the five aspects of the RMB appreciated against the dollar
to bring great loss of export business on January 2 .2008 U.S. dollar against the RMB exchange rate is 7.2996 yuan,cheap UGG boots, now, since the reform of RMB exchange cumulative increase of 11.1%. As exports are mostly denominated in U.S. dollars, RMB appreciation profits of exporters severely compressed. to the apparel industry, for example, 1% appreciation of the renminbi, apparel industry profits fell 4%, and the entire textile and apparel industry average profit is only 3.3% -4%. Morgan Stanley, Citigroup, Deutsche Bank, Swiss banks and other institutions are expected in 2008 will continue the rapid appreciation of the renminbi is expected to export-oriented small and medium the survival of enterprises are facing more pressure.
2007 years the export tax rebate and processing trade restrictions and other policy adjustments directory directly reduces the profits of small and medium export enterprises .2007 June 18, the Ministry of Finance and State Administration of Taxation issued reduce the export tax rebate rate of some commodities, . Many small and medium enterprises is extremely low profit margins, the export tax rebate rate reduction or elimination of a direct result of their loss; more serious, do not set the transition period, so many companies by surprise.
2007 年 7 23, the Ministry of Commerce and General Administration of Customs jointly issued the catalog published, mainly involving high energy consumption, high pollution, resource-based iron and steel and products, aluminum products. Some products containing endangered animals and plants are also included in the composition of the prohibited categories, including leather products, animal hair and fabric, footwear categories, products, jewelry, eyewear, watches, and other miscellaneous products.
labor costs continue to rise, the new labor law adds to the cost of small and medium export enterprises since 2004 when the Guangdong outbreak of labor shortage, labor shortages drive up wages, and increased production costs. PRD is mainly labor-intensive SMEs enterprises, rely on a lot of labor inputs, wage costs on corporate profits are extremely sensitive to .2008 on January 1, on June 29, 2007 adopted the signed on the contract labor law, contract termination, overtime provisions and other issues directly caused by rising labor costs, rely on low-cost advantages for small and medium export enterprises particularly affected.
rising raw material prices, utility costs, plant rental, etc. also contributed to the current plight of the important reasons. For many reasons, oil, metals and other raw materials prices rose sharply,UGG bailey button, the Pearl River Delta and processing enterprises have been hard hit .2008, international oil prices topped 100 U.S. dollars / barrel mark, a record high expected trends in oil prices will not change .2007 November 1, the domestic oil price increases of 8%, will further increase the next. part of the region also broke out , Canton real estate prices rise, or up to 100% in some areas, land prices, rental prices have gone up.
product quality issues, the U.S. subprime mortgage crisis has further revealed the impact of .2007, to the American output continuous burst of product quality, damage the . U.S. subprime mortgage crisis will make the U.S. economic downturn in 2008, the United States to further slowdown in consumer demand will directly affect China's exports .2008, inflation and the U.S. economy is facing the dual pressures of slowing growth, inflation rate may exceed 4% The projected growth of less than 2%, or even a recession. According to Commerce Department statistics, since the sub-prime crisis, China's exports to the U.S. last year's third quarter, there was a substantial decline has been estimated that the fourth quarter, was down trend.