Manufacturing upgrade, emerging industries rise
Because of the lessons of the financial crisis, since 2008, Dongguan has begun to transform and upgrade its traditional manufacturing industry. However, the strong inertia of the "Dongguan model" restricts the transformation of Dongguan's economic development path.
As early as 2012, in the face of social doubts, the then mayor of Dongguan, Yuan Bao, was frank and frank, and he was anxious when he was too slow, but the transformation and upgrading must be calm, "I said that it takes ten years to complete the transformation. Not sure."
Later practice proved that Yuan Baocheng's statement was correct. During the "Two Sessions" in Dongguan in 2016, Yuan Baocheng pointed out in his government work report: "The city still has obvious shortcomings in coordinated development, ecological environment, and social construction, and the deep-seated contradictions and problems faced in development are still outstanding."
Since 2006, affected by factors such as rising labor costs, Dongguan's traditional processing and manufacturing industries, represented by the shoe industry, began to transfer production capacity to Southeast Asia, Africa and other countries with richer labor and lower costs.
"At present, the larger shoe factories in Dongguan mainly manufacture low-end women's shoes and sports shoes. Most companies have moved to Southeast Asia and South Asia, such as Bangladesh, Cambodia, India, Vietnam, Indonesia, and Myanmar." Asian Footwear Association Li Peng, secretary-general and secretary-general of China Department Store Commercial Association's Clothing and Accessories Committee, said in an interview with a reporter from China Business News.
But Dongguan also has advantages not found in other regions such as Southeast Asia. "Dongguan is still the world's shoe manufacturing order center, shoemaking talent gathering center, shoe industry information center and world raw material supply center." Li Peng told the China Business News reporter that Dongguan's clothing, shoes, bags, and even furniture are now Partially replace the products made in Italy and Spain.
Over the years, Taiwanese-funded enterprises in Dongguan have also brought some supply chain enterprises to Southeast Asia. In other words, many supply chains in Southeast Asia are supported by Dongguan companies.
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