The Luzhou municipal government of Sichuan province has recently invested in Guangzhou, hoping to introduce Luzhou's small and medium-sized leather enterprises into Luzhou.

Since the end of last year, a large number of Guangdong enterprises, especially small and medium-sized leather enterprises, are facing unprecedented difficulties because of the impact of rising cost of raw materials and the appreciation of the renminbi. More than 1000 shoe companies have collapsed in the PRD before the Spring Festival.

In order to get rid of business difficulties, many enterprises began to shift their production plants to the lower cost inland and surrounding areas.

Quality can not be reduced, to do things well, the cost is bound to be high, so it can only go to low cost places.

Compared with the coastal areas, the central and western parts of the mainland have more advantages in terms of cost. Zhu Yizhuang, Secretary of the Luzhou Municipal Committee of Sichuan Province, said that the cost of production is nearly half cheaper than that in coastal cities.

The cost of manpower in the West will be half cheaper than that in the coastal areas, and the energy price of electricity and water will be cheaper than that on the coast.

Many enterprises in the Pearl River Delta have been tempted by the frequent investment offensive by the central and Western governments. Taiwan crown group has said that it will set up its own industrial park in Luzhou and carry out the overall migration.