Where Is The Way For Chinese Enterprises To Survive?

After more than ten years of golden development, the comparative cost advantage that China once had was slowly receding. At the beginning, the processing or trading enterprises that entered China with this advantage could not afford such a heavy burden.

Perhaps even the world's rigid fiber did not think that its fame in China would be 7 years after entering Yantai, Shandong. What they even imagined was the famous way. It was not because of what the Korean enterprise did at the local level, but because they staged the most successful collective night escape. In January 12, 2008, more than 10 South Korean managers left more than 3000 employees in the middle of the night.

In fact, South Korean enterprises' abnormal withdrawal from China is by no means the first time this year.

According to figures provided by the Korean Consulate General in Qingdao, the unauthorized withdrawal of Korean enterprises in Shandong started in 2003 and has not happened before.

21 occurred in that year, 25 in 2004, 30 in 2005, 43 in 2006, and 87 in 2007, up 1 times over the same period last year.

The analysis shows that the largest number of jewelry manufacturers in the Korean enterprises with "unauthorized withdrawal" are 63, while the rest are 33 garment factories, 28 leather factories, 14 suitcase factories and 13 shoe factories.

In the Pearl River Delta region, Taiwan funded enterprises and Hong Kong funded enterprises also appeared "abnormal withdrawal".

Many experts believe that these evacuated enterprises are basically labor-intensive enterprises, and most of them are small and medium-sized enterprises. When China enters the era of industrial upgrading, the survival of the fittest is inevitable.

Behind the "abnormal withdrawal" is that, whether it is Korean enterprises or Hong Kong funded enterprises or Taiwanese funded enterprises leaving the mainland, whether labour intensive or other types of enterprises, at least one thing is common, that is, the action response to China's increasing cost.

After more than ten years of golden development, China's comparative cost advantages are slowly receding. At the beginning, the processing or trading enterprises that entered China as an advantage could not afford such a heavy burden.

The abnormal withdrawal of foreign-funded enterprises is just an abnormal reaction to this, which reflects the changes of China's economic environment.

Faced with this change, foreign enterprises can still "escape", and local enterprises are not so lucky.

From 2006 onwards, China began to feel the intensive bombing of anti-dumping. Textiles, footwear, lighters, candles, toys, agricultural products (love shares, quotes, information) and so on, made in China began to encounter crises worldwide.

The rapid deterioration of the foreign trade environment has made it difficult for the labor-intensive enterprises in China to survive, and even the extreme incidents of the bosses being forced to commit suicide.

Bottleneck in the people's "expected" to complete the "break 7", the dollar still maintained a "stubborn" devaluation trend, the deep impact of the sub-prime crisis in the United States has emerged (many Chinese enterprises sent the United States found that customers have closed down is the best proof), the rise in labor costs, high oil prices, even the high CPI, all kinds of adverse factors seem to meet overnight, so that China has not yet prepared for this psychological preparation enterprises feel the "rain coming" suffocation.

"Survival, or death, this is a problem!"

Hamlett's voice echoed through the hundred years of time in the sky of China today. Perhaps this is also the problem that countless small and medium business owners are suffering today, though it is so helpless.

According to statistics, 1/3 of the shoe industry enterprises in the Pearl River Delta region have been closed down, and more than 40 lighters enterprises in Wenzhou and other places are at the edge of crisis.

In Wenzhou, Suhang and other places where factories once stood, many factories have been defeated, far from the initial bustle and prosperity.

The statistics of foreign trade released by the Ministry of Commerce in February showed a sharp drop in China's import and export volume.

According to the latest data released by the National Bureau of statistics in March, CPI has reached a record high of 8.3%.

The rapid environmental changes have made Chinese enterprises, especially growth oriented SMEs, feel the crisis of survival.

The anxiety is written on the face of the small and medium-sized enterprises who are struggling to think.