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Textile And Garment Manufacturers In The Yangtze River Delta Are In A Low Ebb Tide.

2008/7/14 0:00:00 46

In Wenzhou, Zhejiang, the trend of manufacturers shutting down or closing down has spread to the Yangtze River Delta region, and has been caught in a low tide, including lighters, clothing, shoes, textiles and many other industries.

However, business circles have pointed out that, in the medium to long term, the survival crisis faced by SMEs in Jiangsu and Zhejiang provinces will not cause a devastating blow to the private economy in the Yangtze River Delta in two provinces.

According to the China business newspaper, Zhou Dewen, President of the Wenzhou SME Development Association, said that during the 30 years of reform and opening up, the accumulated wealth and business experience and risk bearing capacity of Zhejiang businessmen far exceeded people's imagination. In Wenzhou alone, about about 500000000000 Yuan of hot money can guarantee that many enterprises in need are not short of money.

But the damage to some pillar industries and the fear of more businesses and investors can not be ignored.

It is said that some large enterprises which were not directly related to the crisis were also involved in the whirlpool due to the divestment of small and medium-sized shareholders.

Zhou Dong, Deputy Secretary General of Jiangyin Youth Chamber of Commerce in Jiangsu Province, said that in the face of the crisis, private enterprises in the city chose more private financing channels to raise funds as a pition, and some enterprises tried to employ part-time workers to minimize production costs.

At the right time, the government should take the lead in Zhejiang Province, Huang Jiangwei, a research expert, said that under the conditions of China's governments at all levels being more involved in economic activities, when the market is in good condition, if the enterprises themselves make efforts to make money and the market environment is bad, the government will try to save the market.

Although there is no data showing that the current collapse has devastating impact on the economy of the Yangtze River Delta region, its "delayed effect" still has to be taken care of.

Zhou Dewen believes that the large enterprises in Wenzhou and even Zhejiang province are not the main force to promote local economic growth. The bottom of the economic "Pyramid" is actually supported by small and medium-sized enterprises. They ease the pressure of employment everywhere, and the tax payment is also the main source of income for most grass-roots governments.

He believes that the "prescription" of the manufacturing industry in the Yangtze River Delta should be: the central government supports the policy, and the local governments help them in practical difficulties.

And the support of local governments is most important.

An official of the Wenzhou municipal government has revealed that the city has designated this year as a "government enterprise linkage service year" to solve the plight of local enterprises. The municipal government will adopt a relaxed policy in the aspects of the approval and approval of new investment projects, and also provide technical and personnel support as far as possible.

Structural adjustment is in line with the trend. "This business failure is not all bad. Good companies can stay and poor ones will be eliminated."

Sun Zhiliang, vice chairman of the Wuxi municipal CPPCC Committee, said.

He said that the target of the government's support is low energy consumption and high return enterprises, and the polluters are not listed here.

In Ningbo, Zhejiang, the municipal government recently launched a new evaluation plan for local enterprises, which will be graded according to the profits and taxes, growth, energy consumption, pollution and other aspects of the enterprise.

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