Is Disaster Or Labor Pains? China'S Economy Is Facing Great Challenges.

"Is it a disaster in China's economy or a labor pains in the course of economic development?"

In recent years, there has been a heated debate among experts on an economic phenomenon in China.

This economic phenomenon is the phenomenon of large-scale enterprise closing or factory relocation in the Pearl River Delta area of southern China, known as the "world factory".

Xinhua News Agency reported 5 days ago: "in the Pearl River Delta region, there is a financial turmoil and turmoil that has never been seen before.

Over the past 2~3 months, more than 1000 shoe manufacturers have gone bankrupt, and more than 10000 enterprises in Hongkong are facing a crisis of bankruptcy. More and more SMEs are planning to move to other areas. "

In an article entitled "crisis or turnaround", Xinhua said: "in Dongguan, known as the world's shoe capital, there are 200~300 enterprises bankrupt. In Huizhou, Guangzhou, Heshan, Zhongshan and other Guangdong provinces, the more than 1000 enterprises in the 5000~6000 shoe making enterprises close to 20%."

Guangdong is the largest economic region in China, which accounts for more than 10% of China's GDP (GDP).

In recent years, as Hongkong and Macao have been tied up as an economic region, they are threatening the scale of the Korean economy.

There are seven reasons for the red light coming from Guangdong's economy at the end of last year.

That is to say, the RMB will continue to appreciate, the price of energy and raw materials will rise, labor costs will rise, manpower is hard to find; the export tax rebate rate will be lowered; the labor contract law, which has been implemented since January of this year, will increase the land use fees.

"The minimum salary for Dongguan in 2002 was 450 yuan, but now the average salary of factory workers has exceeded 1000 yuan," said Li Peng, Secretary General of the Asia Footwear Association.

Local economic people said that shoes, clothing, textiles, plastics, electronic assembly, metal products and other labor-intensive enterprises are suffering a huge blow.

For the large-scale elimination and relocation of enterprises in Guangdong Province, economic commentator Zhu Jianguo pointed out: "during the great leap forward movement in 1958, people died, and now the enterprises are dying.

When an enterprise dies, hundreds or thousands of employees will lose their jobs.

The situation is more serious than imagined. "

In Zhuhai, Tang Guangwu, managing director of an enterprise, published an optimistic analysis. "This is an inevitable phenomenon from the traditional labor intensive industry to a modern technology intensive industry," he said.

In China, before and after the implementation of the new labor contract law, foreign-funded enterprises in Guangdong, Shandong and Fujian provinces were also bankrupt and evacuated.

As to whether this phenomenon is toxic or good for China's economy, it is expected that the Beijing Olympic Games will be able to be seen after this August Olympic Games.