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Brazilians Are In Shoes Dongguan.

2008/10/20 0:00:00 40

Dongguan, which is 90 kilometers north of Hongkong and has a population of about 7 million, produces all kinds of goods from furniture to auto parts. It is one of the driving forces of China's economic prosperity.

If you look closely at the city, you will find a group of strange faces: there is a thriving Brazilian community of about 3000 people, most of whom are there.

shoes

Factory work.

They are going back to their old business.

In the early 1990s, southern Brazil

shoes

Manufacturing and export businesses flourished, and trade growth in footwear industry was stagnant after trade barriers, currency appreciation in Brazil and cheap labor in China.

In 2007, Brazil exported 177 million pairs of shoes, which was 12% lower than the 201 million largest export volume in the early 90s.

Many of the shoe factories have moved to the north where labor costs are cheaper.

China was already the largest exporter of footwear in the world, and in the last decade, China's share in the global footwear export market doubled to 2/3.

Now, Dongguan is China's shoe industry center, with an annual export volume of 600 million pairs, most of which are produced by Dongguan's enterprises in the field.

Chinese companies beat Brazil at a cheaper price.

shoes

The factory owes much to cheap labor.

But in China, manufacturing

High grade shoes

The high skilled workers needed are still in short supply, which has attracted part of the Brazil system.

shoes

Most of the high-tech workers in the industry are product quality controllers and sewing technicians. Some also have professional degrees in leather. They travel across the sea to China.

Faced with the pressure of Brazil market and China's desire for technical knowledge of shoemaking, Ricardo Claire made a decision in 1995. He came to China and founded Paramont Asia. Last year, the number of women's shoes produced and sold by the company exceeded 35 million pairs.

Many finished products

shoes

Shipped directly to America after leaving factory.

At present, the company has 800 employees, 100 of whom are Brazilian, and their daily working language is English.

Many Brazilians follow these systems.

shoes

Industry experts came to China to engage in service work, such as opening a restaurant in Brazil, teaching Portuguese teachers to Brazil children, etc.

At present, the Brazil community in Dongguan is two times the size of Shanghai and three times that of Beijing. The Ministry of foreign affairs of Brazil plans to set up consulates in Guangzhou next year to serve their citizens.

The past two presidential elections in Brazil and even the establishment of polling stations in Dongguan have added something new to this city.

The Brazilians enjoy living in China, where the crime rate is much lower than their hometown, and they can make more money.

"Every time I return to Brazil, I will add a love to China."

Pat Raymond's Brazil employee Ali Fei PNI said.

However, globalization is still advancing, and pressure on enterprises in Dongguan to cut costs is growing.

Some shoe companies closed factories in Dongguan and moved to inland China or other cheaper places in Asia.

Like Raymond, now the production has been pferred to the mainland and Vietnam and India.

There are always ways to solve the problem, but the Brazilians who are moving to China will probably move again in the future.

Short commentary:

Over the past year, rising costs have forced about 15% of shoemaking enterprises in Dongguan, a major industrial hub in southern China to shut down or relocate.

The global footwear industry has always been known for its free flow from the late 80s of last century to Taiwan, China and South Korea, to the South China in the 90s of last century.

Recent signs suggest that the global footwear industry is likely to start another shift to China's inland provinces or to other Southeast Asian countries.

Financial Times

The change of China's light manufacturing industry is triggering a chain reaction worldwide.

Factory owners are moving away from Guangdong and PRD regions with relatively high cost of living and higher wages to find new foothold in the interior of China, where they can enjoy lower costs and obtain investment preferences from local governments eager to attract investment.

In some cases, these firms will also invest in other countries with lower wage levels.

This means that countries like Vietnam and Bangladesh will get more job opportunities.

 

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