Shoe Industry In The Cold Winter: Collectively Moving Factories To The Mainland

In the past, many traditional industries such as Taiwanese funded shoe factories and other traditional industries have been rushed to Dongguan from Shenzhen. Now they are facing a crisis of survival. Li Wencheng, Secretary General of the Dongguan East Association Branch, reveals that Taiwanese businessmen are working on the strength of the contract industry to prepare for "collective relocation" and open their way of life.

Li Wencheng said, "we are talking about collective relocation with local governments in Jiangxi, Guangdong and Hunan provinces, including land, factory buildings, taxation, import and export fast track, pportation preferences and other conditions, and we need each other to issue a written contract to make every standard in a scientific way, and do a good job analysis."

Li Wencheng explained that this is a must measure.

Dongguan is no longer a paradise for traditional manufacturing industries with manpower intensive. The local government hopes that the shoe industry will move outward, unite the power of Taiwan businessmen, and talk about better conditions with other parts of the mainland through the collective migration of industries, so as to achieve the results of saving labour and improving efficiency.

At present, Baocheng and Yuyuan set up two factories in Ganzhou, Jiangxi, while the crown is ready to set up two factories in Nanning. Most other Taiwanese shoe factories have gone to Vietnam to set up factories.

These are all alone, and Li Wencheng believes that "small and medium-sized Taiwanese businessmen do not have the conditions and abilities to fight alone. They must be united in their efforts. The strength of the Taiwanese businessmen in the contract industry must be better because of the large volume and large scale."

He pointed out that the main objectives of the negotiations are in southern Jiangxi, southern Hunan and southern Guangxi, and Hongkong and Shenzhen are still at the sea.

At the same time, we should have at least 20 manufacturers in the same industry and move away from Dongguan to see the economic strength and energy of Taiwan businessmen.

Taiwanese businessmen are also not optimistic about collective movement.

Zhang Shixin of the Xinqiao shoe industry said that although the mainland was not short of electricity, it was also short of labor. It was only left behind by old and weak women and children, and the labor cost could not be saved.

Besides, how much can we increase the pport cost if we reduce land and manpower?

Dongguan officials are worried about Taiwan businessmen's collective Exodus.

More than nine percent of the population in Dongguan is outsiders. When the industry moves outside, the population will be lost. After the industry is empty, officials worry that the hotels, restaurants, finance and department stores that will be brought about by the prosperity of manufacturing industry will also go away.

By then, Dongguan will have a crisis of industrial imbalances and become an empty city.