"Factory Westward" Pick Up Profits Squeezed By Coastal Export Enterprises

As the appreciation of RMB has squeezed the profit margins of export enterprises in the southeast coastal areas in different degrees, how to maintain or even increase profits under the situation of weakening the advantage of cheap labor force is a difficult problem faced by every export company.

Fu Peng, chief strategist at China International Futures researcher, said, "

According to incomplete statistics from the China Commercial Daily reporter, the monthly salary of a mature mechanic in the southeast coastal area is between 2000 yuan and 3000 yuan, while the company moves to the west, and the cost of wages will drop to less than 1500 yuan as the cost of living, housing and so on.

For example, Foshan ceramics, which has been popular all over the world, has undergone such pformation. They moved the factory from Guangdong to Shandong, and now moved the factory to the Ordos area. Although such migration is cumbersome, insiders told the China Daily News reporter that the factory relocation can help them save 24 million yuan a year, which also forms their own unique competitive advantage.

Fu Peng pointed out to the China Commercial Daily reporter, in order to give the coastal area

With the deepening of RMB exchange rate reform, Eastern and western parts

Because for our country, the most important thing now is to promote the pformation of enterprises. The eastern region has been pformed into the three main industries, such as the service industry and the financial industry. Their main tasks are to export, trade, finance, exhibition and so on.

The products themselves are processed and pported in the western region. When the economic development of the western region reaches a certain level, they can even sell domestic products to the Middle East and Central Asia, and penetrate into their core areas through trade. This will also lay a solid foundation for diplomacy.

Fu Peng predicts that the western development of the western region will take nearly 30 years to complete.

However, the determination of the state to develop the West will not be weakened.

President Hu Jintao visited Xinjiang and Inner Mongolia many times in one year, and the capital investment has totaled 682 billion yuan.

In many people's eyes, this has immediately become a "new stimulus policy".

In the next 10 years, the western region will become a new engine for China's economy.

It is not hard to imagine that this "economic relay between the East and the west" will become a gorgeous performance that shocked the world. As long as the eastern and Western economies achieve coordinated development and form a complete "Taiji" trend, and with the deepening of the RMB exchange rate reform, China's economy will surely be at the top of the world.