Wenzhou Manufacturing Dare Go? – Wenzhou, Hardware, Lighter – Hardware Industry

Wenzhou is a “private economic capital”, Wenzhou, China produced 10% -20% of the clothing shoes, more than 70% of the razor, Lock , Glasses, more than 90% Lighter , Wenzhou, low-voltage electrical appliances, hardware products, Auto parts, ceramic products in the domestic important. Wenzhou manufacturing sector in the country and the world the important role of great importance. However, facing the credit crunch and declining exports, the situation in the former “fame” of Wenzhou industry needs to rethink about their living environment.

Recent period of time, the leadership of various ministries intensive research initiatives to the outside world, Wenzhou Wenzhou, the crisis is quite worried, and some even believe that the development of private economy in Wenzhou, a bottleneck occurs. By our reporter to the famous “Wenzhou model” of experts in the development of SMEs in Wenzhou Association president Zhou Dewen confirmation, Zhou said the current president that there exists a certain crisis, but the bottleneck should not exist. Wenzhou currently has 20% of SMEs in the suspension or semi-shutdown state media reported that 20% of SMEs in Wenzhou, which is not the fact that by closing down According to Of.

The dual pressure of crisis Zhou Dewen, long engaged in economic theory and practice of business management, tracking Wenzhou model. Zhou Dewen introduction, “Wenzhou current crisis is a normal phenomenon, is the inevitable result of macro-control. Enterprises through a stage of development, the enterprise must re-shuffling between the survival of the fittest, large companies began merger small business. Under normal should be said that the proportion of 10% is a normal update, the current relatively high proportion of Wenzhou, is due to internal and external factors affecting the results. “

Zhou Dewen said that small and medium enterprises in Wenzhou are now faced with both external and internal pressures. External conditions is mainly reflected in the monetary tightening, exchange rate changes and the new “Labor Contract Law” brought about by the implementation of pressure, Wenzhou, elements of local constraints also exist, like Wenzhou, a serious shortage of land, industrial land has risen to 3 million yuan per mu left and right, forcing enterprises to invest and build factories to other places, if staying in Wenzhou, enterprises will be unprecedented cost pressures; the problem is internal Wenzhou manufacturing has always been extensive, and enterprises to adopt the low-cost, low price competitive strategy, product quality can not win a majority, much less in terms of brand. These pressures are there to make the plight of small and medium enterprises in Wenzhou, is facing a crisis, but this is not the “Wenzhou characteristics,” but labor-intensive enterprises generally focus on the verge of an embarrassing area, but more representative of Wenzhou, people will be more attention given.

Difficult Situation of loans Major banks now lending target is still concentrated in large state-owned enterprises, loans to SMEs is very difficult. In response to this situation, Zhou Dewen that the central bank increases in the reserve, the purpose is to control the investment of the heat, which affect small and medium enterprises to obtain loans from larger banks. Wenzhou, private capital now have 600 billion in size, assuming 10% of lending is 60 billion of funds, private capital will have to support the role of these SMEs. In addition, Wenzhou, private equity and venture capital are very active, how much will this solve the problem of difficulties in SME lending.

Zhoude Wen called for greater financial domestic and opening up, such as setting up small business banks, community banks, small loan companies, to address the small, small business loans difficult problems; to increase the pace of investment and financing reform constitution, If the pilot run local bond markets and property rights trading market; to speed up industrial restructuring and capital restructuring, particularly important in terms of Wenzhou, the government should guide the establishment of venture capital funds. SME Development Association was founded in Wenzhou has actively advocated the establishment of SME guarantee system and led directly to the Credit Guarantee Co., Ltd. was founded to solve problems for SMEs are more than 270 security companies in Wenzhou have eased the SME loans, guarantees difficult. Zhou Dewen Wenzhou encourage entrepreneurs to develop the entrepreneurial spirit of persevering.

Response to the export processing industry

Occur due to the U.S. subprime mortgage crisis, U.S. companies the same credit crisis, which Wenzhou export-oriented processing enterprises to major combat. Zhou Dewen introduction, this crisis has caused many small and medium processing fees are owed. On the surface it is U.S. companies challenged the concept of contract because the contract before the concept of a strong U.S. customers. However, processing enterprises of Wenzhou, which makes enterprise normal liquidity can not be guaranteed. In addition, since the yuan revaluation, the dollar continued depreciation of the exchange rate adjustment, the majority of processing enterprises in the signed contract is profitable, the contract can be delivered when there is no profit, and this is a great impact on the survival of enterprises.

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