PUWORLD (2008/04/07) -- in December 10, 2007, CCTV "economic half-hour" broadcast "thousands of business failures in the Pearl River Delta survey: the relocation of enterprises to increase costs"; in January 22, 2008, the Southern Metropolis Daily reported that the new year's January, the Pearl River Delta in winter is experiencing an unprecedented pfer of pain: thousands of shoe factories have closed down, more than ten thousand Hong Kong enterprises are facing the closing tide, and a larger number of small and medium-sized enterprises are planning to move out of here. In early March 2008, the Wall Street Journal reported that there are more than ten thousand foreign-funded enterprises in the Pearl River Delta to fail or move out.

From the end of last year to the beginning of this year, the manufacturing industry in the Pearl River Delta has always been at the cusp of the storm and experienced the throes of change.

Among them, the most concentrated performance is the large-scale shift of shoe enterprises.

According to the latest statistics of the footwear association of Asia, as of last month, thousands of shoe enterprises in Guangzhou have gone bankrupt or pferred. Now the disintegration of the Pearl River Delta manufacturing industry, which has been the economic model, is the inevitable rule of government guidance or self development?

Obviously, the answer is not so simple.

From the perspective of appearance, the export tax rebate adjustment, the increase of raw material costs, and the substantial increase in labor costs and other external factors have led to the further compression of the profit margins of shoe enterprises, and the pfer of production which can not afford to be closed.

The state's policy of upgrading the Pearl River delta industry is like a fuse, which is a big change in the whole industrial structure.

It is true that external objective reasons, whether long-term industrial unscientific expansion is the foundation of the industry's "tsunami"?

Jonathan Anderson, an economist at UBS, may be the beginning of a heavy blow to Chinese manufacturers' profitability this year.

Is this comment alarmist?

Is the bankruptcy of small and medium-sized shoe enterprises in the Pearl River delta still difficult to tell?

Can pfer enterprises solve the problem of industrial upgrading?