Gospel of LED companies: Guangdong plans to reduce 400 billion for enterprises

Recently, in order to decompress enterprises and stimulate the development of the real economy, many local governments have recently intensively voiced “cost reduction”. Judging from the target values ​​of the 10 provinces that have been measured for the reduction of the amount of credit, this year at least plans to reduce the burden of enterprises over 800 billion. Among them, according to the "Guangdong Province supply-side structural reform overall plan (2016-2018) and five action plans" given the reduction of the amount of quotas, Guangdong has the largest amount of burden reduction, is expected to reduce the cost of 400 billion enterprises by the end of this year.

Faced with such a huge amount of burden reduction, Ye Chunrong, a former member of the Guangdong Political Consultative Conference and a Taiwanese businessman, said in an interview with the media: "This is the gospel of the enterprise. During the economic upswing, it is relatively easy for companies to make money, and they do not complain about these taxes and fees, but Now that the economy is in a downturn, it is very difficult for companies to survive. Therefore, it is necessary to reduce taxes and reduce the burden, so that it is necessary for enterprises to go into battle."

Indeed, as Ye Chunrong said, this is the gospel of the enterprise, but it is the gospel of LED companies.

As is known to all, Guangdong is synonymous with China's LED industry. The so-called "global LED industry development looks at China, China's LED industry development looks at Guangdong", Shenzhen is a major pillar of the Guangdong LED industry cluster. But in recent years, many companies have moved out of Shenzhen.

According to the data, in July 2011, Zhouming Technology invested in the construction of LED project in Daya Bay, Huizhou, and recently intensified the construction of a 110,000-square-meter LED application base; in October 2011, the joint construction also started production in Huizhou Science and Technology Park; In the same year, Shenzhen Lehman Optoelectronics Technology Co., Ltd. opened in Huizhou Industrial Park.

In 2013, Wanrun Technology also successfully “escaped” from Shenzhen. So far, it has successfully completed the relocation of the main LED packaging production line from Shenzhen Guangming Factory to Dongguan Songshan Lake High-tech Industrial Development Zone. Coincidentally, at the beginning of this year, Cisco Rui built a new factory in Dongguan. It is expected to be put into production after the year.

Why are there so many factories fleeing from Shenzhen? The reason is that in addition to the overcapacity caused by excessive influx of enterprises and blind expansion, the rise of labor, rent, water bills, taxes and fees, etc. A sharp knife on the head of the enterprise, especially the cost of labor and the cost of rent. After last year’s “running all the way”, some enterprises have already felt the pressure caused by the rental expenses. Therefore, LED companies have moved the factory back to the mainland. It is not surprising that cities with abundant resources and low costs only leave the R&D and sales departments in Shenzhen.

Moreover, Shenzhen's prices have advanced by leaps and bounds. High consumer prices have made it impossible for foreigners to afford, can't afford to live, and can't afford it. Choosing to go home to develop or start a business is their helplessness, but it is the development of LED companies in Shenzhen. It is undoubtedly a devastating blow, because the development of LED companies is inseparable from talent. At the same time, LED companies' various large-scale expenditures make the salary unchanged, making it difficult to retain people, which has led LED companies to move away from Shenzhen or peripheral factories.

More importantly, when most enterprises are experiencing the dilemma of “increasing production without increasing revenues and increasing income without increasing profits”, taxation is a huge cost expense for LED companies. Therefore, the six 400 billion burdens opened in Guangdong this year. In the list, the reduction of the single-tax negative cost item is as high as 215 billion, which is more than 50%. And this is precisely the area of ​​most of the companies that are looking forward to the fee reduction.

In summary, the cost of forcing companies to flee is not an alarmist, and it is imperative to reduce costs. The reduction of taxes and reductions introduced by Guangdong Province is the gospel and opportunity of enterprises. "But in addition to the tax reduction measures provided by the central and local governments, enterprises themselves need to cultivate their internal strengths. It is necessary to improve the management and control costs and digest some of the costs. This is the basic policy." China Academy of Social Sciences Industrial Economy Researcher Chen Yao of the Institute of Regional Economics of China said.


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