Central provinces want to get rid of Foxconn's addiction: still important

Data from the Zhengzhou customs show that this 1 ~ September, Henan Province Import and export volume of 38.73 billion U.S. dollars, an increase of 14.4%, but a noteworthy data is that 14.4% of the growth rate, up to 13% are driven by Foxconn.

Since 3 years ago, the central province of Henan, relying on the labor force advantage, the Foxconn "married" came in, the annual import and export volume of the national ranking has been relying on Henan, the annual import and export volume leaped into the middle of six provinces, the first in the country ranked 13th.

Since the introduction of Foxconn, the volume of foreign trade in Henan province from 2009 to 13.438 billion U.S. dollars, jumped to 2012 of 51.75 billion U.S. dollars, ranked from the Ministry of six provinces, the third, leaped to the top six provinces.

But at the same time, "Foxconn dependency syndrome" has gradually become the embarrassment that Henan province has to face. Faced with the same situation in Shanxi, Foxconn Taiyuan Factory annual total import and export, supporting the entire Shanxi province, half of the export of foreign trade.

Foxconn's position in Hubei export is also very important, "first financial daily" noted that in the first half, Hubei province exports 9.32 billion U.S. dollars, Wuhan foreign trade exports 4.87 billion U.S. dollars, Wuhan Foxconn export 1.318 billion U.S. dollars.

Still important.

Data from the Department of Commerce in Henan province showed that in the first three quarters of this year, 38.73 billion dollars in exports, Foxconn contributed 20.94 billion U.S. dollars, accounting for 54%.

July 23, Henan Province Business Department director Jiaojin in the province held a press conference on the first half of Henan province business operation, said that Foxconn is still the province's foreign trade plays a pivotal role.

But as Foxconn began adjusting its market strategy in August this year, it shifted some of its products from its former exports to domestic sales, and the export growth of Henan began to face pressure.

The Department of Commerce in Henan Province said in an internal report that, affected by last year's base, the fourth quarter of Foxconn's import and export growth may continue to fall, the provincial import and export growth will further slow, the end of the year to complete the goal of 15% growth in imports and exports have some difficulties.

A data from the Department of Commerce in Shanxi Province shows that so far, Foxconn Group is still the main driving force for the growth of import and export of Shanxi province, of which, in January-August this year, 15.9% of the growth of foreign trade in Shanxi Province, 12.52% were driven by Foxconn. But with the increase in domestic sales Foxconn, Shanxi Province in the month of August import and export both showed a large decline, down 32.1% year-on-year.

A person in charge of Taiyuan customs said in an interview with local media that at present, the foreign trade in Shanxi province is facing challenges, the foreign trade growth is obviously falling, the trend is weak in the short term, the competition in the central and surrounding areas is more intense, the number of leading enterprises contributing to the import and export of the Low-speed growth of small and medium-sized foreign trade enterprises, labor, exchange rate and logistics costs, increased export enterprises export difficulties.

According to the latest data released by the Bureau of Statistics of Hubei province, the total import and export of the province in the first three quarters of this year was 24.67 billion U.S. dollars, an increase of 11.3%, of which exports 16.72 billion U.S. dollars, growth 17.9%, Hubei foreign trade exports appeared for 3 consecutive months of growth rebound.

It is noteworthy that Hubei did not fall into the "Foxconn sneeze, foreign trade exports on the cold" circle. This is related to Foxconn's product layout in Hubei. It is reported that Foxconn Wuhan factory to produce printers, monitors, desktops and other products. In particular, desktops, laptops, pad and other products, the market impact of large, Foxconn has to plan to the three production of desktop companies to integrate into one. Visible, the product structure determines the Foxconn Wuhan factory to Hubei foreign trade contribution.

However, in Hubei's export share, Foxconn's status can not be underestimated, one of its enterprises exports accounted for 27% of Wuhan City, Hubei Province, 14%.

Accelerate Industrial upgrading

How to get rid of "Foxconn dependency syndrome" as soon as possible, become Henan, Shanxi and other central provinces of the common choice. From Zhengzhou Aviation Economy Harbor Comprehensive experimental area of an official told the reporter, at present, Henan Province has gradually recognized the provincial foreign trade import and export excessive reliance on the status of Foxconn, to this end, the province on the one hand is organizing experts to discuss the "introduction of Foxconn to the opening of Henan to the advantages and disadvantages" and It is hoped that by increasing the investment in the port area to attract more bio-pharmaceutical, electronic technology, High-tech and other industries to settle in, at the same time, accelerate the industrial structure of Henan Province upgrade, from the previous agricultural provinces upgraded to industrial provinces, especially to increase the ability to form complementary industries with the port area upgrade.

The data from Zhengzhou Airport Economic comprehensive experimental zone show that, in the first three quarters of this year, Zhengzhou Airport economic comprehensive Experimental zone, the cumulative contract 40, total investment of more than 111 billion yuan, including a total investment of 1 billion yuan in the creation of hundreds of communications Shen Yang smartphone production project, A total investment of 3 billion yuan in Suzhou Aaron Medical technology and Equipment industrial Park project, such as High-tech projects.

The capacity of internal transfer pull low Shenzhen export

1988, Foxconn Technology Group investment in the mainland, the first stop was selected at that time or Shenzhen customs area of Longhua, from a barren land to now has developed into a hundreds of thousands of workers of the park, but also the current Foxconn mainland headquarters and workers most of the park.

The fate of Longhua is tied to Foxconn, with Foxconn's huge number of workers benefiting the surrounding farmers as the main force for Longhua and peripheral consumption – rental housing, ultra, schools and recreational facilities.

With the expansion of Foxconn, not only for many years to become China's export champions, but also for many years to become a major exporter of Shenzhen. 2010 Foxconn in Shenzhen processing trade enterprises exports amounted to 48 billion U.S. dollars, an increase of 50%, continued to be the first in Shenzhen exports.

Shenzhen successive municipal government has been to the development of Foxconn care and love, "A look, love three points", the relevant district, the government departments in the provision of services are fully supported.

In recent years, in the transition from "manufacturing Foxconn" to "technology Foxconn", Shenzhen Longhua Park gradually become the global logistics headquarters, some production lines gradually to Henan, Hubei, Sichuan and other land transfer, Shenzhen has gradually become a "five centers," the new product development and design Center, the key manufacturing technology research and Development Center, New materials and energy research and Development center, manufacturing equipment and mold technology research and development center, product display, trading, logistics and distribution center and new product test base.

With the transfer of Foxconn production capacity to the mainland plant, Shenzhen Import and export also has a certain impact. Shenzhen, a responsible for investment promotion officials told our correspondent, Foxconn's capacity to transfer significantly to the mainland, the Shenzhen import and export data pulled down a few percentage points, thanks to the Shenzhen Foundation hard, and back up.

A worker at Foxconn's Longhua plant said suddenly feel the Longhua plant a lot less people, some from Henan, Sichuan and other land workers back home near the factory work, plus some OEM brand orders slipped, the production line of workers reduced overtime, work enthusiasm dropped, some people have the idea of quitting home.