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

tags Wenzhou is a “private financial capital”, Wenzhou, China developed 10% -20% of the clothes shoes, a lot more than 70% of the razor, Lock , Glasses, much more than 90% Lighter , Wenzhou, low-voltage electrical appliances, hardware items, Auto parts, ceramic products in the domestic essential. Wenzhou manufacturing sector in the country and the world the essential part of great significance. Even so, facing the credit crunch and declining exports, the circumstance in the former “fame” of Wenzhou sector demands to rethink about their living atmosphere.

Recent period of time, the leadership of various ministries intensive study initiatives to the outside planet, Wenzhou Wenzhou, the crisis is quite worried, and some even believe that the improvement of private economy in Wenzhou, a bottleneck occurs. By our reporter to the well-known “Wenzhou model” of authorities in the improvement of SMEs in Wenzhou Association president Zhou Dewen confirmation, Zhou stated the existing president that there exists a specific crisis, but the bottleneck ought to 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, lengthy engaged in financial theory and practice of organization management, tracking Wenzhou model. Zhou Dewen introduction, “Wenzhou current crisis is a typical phenomenon, is the inevitable result of macro-control. Enterprises by way of a stage of development, the enterprise have to re-shuffling amongst the survival of the fittest, big companies began merger tiny organization. Below normal ought to be said that the proportion of ten% is a typical update, the existing fairly higher proportion of Wenzhou, is due to internal and external elements affecting the results. “

Zhou Dewen stated that modest and medium enterprises in Wenzhou are now faced with both external and internal pressures. External conditions is mostly reflected in the monetary tightening, exchange rate changes and the new “Labor Contract Law” brought about by the implementation of stress, Wenzhou, components of neighborhood constraints also exist, like Wenzhou, a significant shortage of land, industrial land has risen to 3 million yuan per mu left and appropriate, forcing enterprises to invest and develop factories to other places, if staying in Wenzhou, enterprises will be unprecedented expense pressures the problem is internal Wenzhou manufacturing has always been extensive, and enterprises to adopt the low-cost, low price tag competitive strategy, item good quality can not win a majority, significantly 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 qualities,” but labor-intensive enterprises generally focus on the verge of an embarrassing region, but much more representative of Wenzhou, men and women will be much more interest offered.

Hard Predicament of loans Major banks now lending target is nonetheless concentrated in big state-owned enterprises, loans to SMEs is very tough. In response to this predicament, Zhou Dewen that the central bank increases in the reserve, the purpose is to manage the investment of the heat, which impact small and medium enterprises to obtain loans from bigger banks. Wenzhou, private capital now have 600 billion in size, assuming 10% of lending is 60 billion of funds, private capital will have to help the function of these SMEs. In addition, Wenzhou, private equity and venture capital are really active, how considerably will this resolve the dilemma of issues in SME lending.

Zhoude Wen named for higher economic domestic and opening up, such as setting up little enterprise banks, community banks, little loan businesses, to address the small, little enterprise loans challenging problems to increase the pace of investment and financing reform constitution, If the pilot run regional bond markets and house rights trading industry to speed up industrial restructuring and capital restructuring, specifically critical in terms of Wenzhou, the government must guide the establishment of venture capital funds. SME Development Association was founded in Wenzhou has actively advocated the establishment of SME assure method and led straight to the Credit Assure Co., Ltd. was founded to resolve issues for SMEs are far more than 270 security companies in Wenzhou have eased the SME loans, guarantees challenging. Zhou Dewen Wenzhou encourage entrepreneurs to create the entrepreneurial spirit of persevering.

Response to the export processing sector

Happen due to the U.S. subprime mortgage crisis, U.S. organizations the exact same credit crisis, which Wenzhou export-oriented processing enterprises to major combat. Zhou Dewen introduction, this crisis has caused many modest and medium processing costs are owed. On the surface it is U.S. companies challenged the notion of contract simply because the contract before the idea of a strong U.S. clients. Nevertheless, processing enterprises of Wenzhou, which makes enterprise typical liquidity can not be assured. In addition, because the yuan revaluation, the dollar continued depreciation of the exchange price 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 influence on the survival of enterprises.

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