In the face of the risk of decoupling and breaking the chain , what should private enterprises do?

Mondo Finance Updated on 2024-01-30

Chao News client reporter Quan Linmin design Zhang Yuan.

At present, economic globalization has encountered adverse currents, protectionism and geopolitical games continue to intensify, and the global industrial chain has accelerated its reconstruction, bringing many challenges to private enterprises.

The Provincial Party Committee's Economic Work Conference proposed to further implement the "No. 1 Opening Project" to upgrade the "sweet potato economy", accelerate the construction of a high-level open and strong province, further release the vitality of the private economy, and polish the golden business card of Zhejiang's private economy more brightly.

In the face of the risk of "decoupling and breaking the chain", how do private enterprises feel?How should enterprises break through and turn crises into opportunities?A few days ago, Yong Jinjun was rightWang Licheng, Chairman of the Board of Directors of Holley GroupAn exclusive interview was conducted.

Yong Jinjun: Holley has started the road of internationalization very early, how is the development of Holley's overseas bases this year?

Wang Licheng:In the future, the global industrial chain system will roughly have 6 plates, the East Asian circle with China, Japan and South Korea as the core, the ASEAN circle formed by Thailand, Vietnam, Malaysia and Indonesia, the South Asian circle with India as the center, the North American circle with Mexico as the center, and North Africa and some Eastern European countries.

Developed countries in Europe and the United States mainly lay out some core technology industrial chains, first, these countries have too few people to recruit enough workers, and second, labor costs are too high.

So far, we have built a product sales network in more than 120 countries and regions around the world, established overseas manufacturing bases for our own industries in Thailand and Uzbekistan, and built overseas industrial parks and agricultural park platforms in Thailand, Mexico and Cambodia.

Yong Jinjun: In recent years, the restructuring of the global industrial chain has accelerated, and foreign media have reported that some foreign companies are interested in transferring the industrial chain out of China

Wang Licheng:I think it's important to take a longer-term view of this.

The first thing to realize is thatThe restructuring of the global industrial chain and the reshaping of the first chain are unstoppable trends.

In the past, the global economic division of labor was very clear, and resource countries such as Canada and Australia mainly sold minerals;These developed countries in Europe and the United States occupy the upper reaches of the value chain and control finance and key core technologiesIn general, manufacturing is carried out by developing countries.

After China's accession to the WTO in 2001, China participated in the global economic division of labor on a truly large scale. Because of the advantages of high efficiency, low-cost labor and huge market, China has become an indispensable manufacturing and processing end in the global economic division of labor.

However, the epidemic and local hot wars in recent years have made countries realize that there are security risks in this long-distance global division of labor. In the event of a natural disaster or local war, the security of the industrial chain will be threatened, which will then affect economic security and even the security of the economy

In addition, the United States has adopted a series of restrictive measures and protectionist practices against China, which has put pressure on other countries, and China's products do not have enough cost space as in the early 2000s to offset the efficiency problems caused by large-span cooperation in the industrial chain.

All kinds of factors accumulate,The world has formed a consensus, the layout of the industrial chain should be as scattered as possible, the shorter the distance between the links, the better, the shorter the radius of the manufacturing base close to the target market, the better, preferably in the same country, resulting in the phenomenon of relocation of part of the domestic industrial chain.

But in the long run, I think,It's not necessarily a bad thing, it can still be a good thing.

A poor situation will instead cultivate a number of good enterprises. Enterprises are just like people, once they get sick, their immune system is mobilized, and when they are stressed, they will cheer up and do things.

Although in the next few years, labor-intensive enterprises with low added value and relying on foreign trade exports to make hard-earned money will usher in a wave of closures. However, in this process, it will also force a number of foreign trade enterprises to truly move towards internationalization.

Over the years, I have found that the bosses who go out with us have broadened their horizons a lot, because they are competing with their global counterparts in the international market.

The first economic work conference just held has repeatedly emphasized "high-quality development", but everyone has had a good life before, without much thought about high-quality development, after this round of harsh winter, the low-end land has been eliminated, and the factors of production can be freed up to undertake better industries, and those left behind are developed to high value-added industries, and the industry can accelerate transformation and upgrading.

Yong Jinjun: The Economic Work Conference proposed to improve the resilience and safety level of the industrial chain. How do you think companies should take the initiative?

Wang Licheng:If the downstream of the enterprise is directly the consumer terminal,It is recommended not to be a "hands-off shopkeeper".

Because of the perfect industrial chain ecology, even if Chinese products are subject to tariffs, they still have a great cost-effective advantage in the final consumer market. However, most enterprises have become accustomed to the traditional export mode of order delivery, that is, after the delivery of the goods, the subsequent links are completely ignored. As a result, once foreign importers withdraw orders, enterprises do not know how to deal with them because they do not have a good grasp of logistics and consumption terminals.

If the enterprise opens up the shipping port from the Chinese port to the target consumer market, opens up the shipping port to the local warehouse in the target city, and then solves the last mile distribution from the local warehouse to each city, and directly does business with local retailers, the cost of goods can be very low and the impact of tariffs can be reducedSecond, enterprises directly sell products to consumers in the target market, with relatively high autonomy, and do not need to "go out", and the industrial chain can also be done well if it stays in China.

If the downstream of the enterprise is those large multinational companies, then it can only take the initiative to "go out" and embed it in the industrial chain that is being reconstructed.

For example, an spare parts export enterprise in Ningbo has built factories in Morocco, Mexico and other countries following the pace of industrial chain transfer. Ningbo focuses on solving problems such as technology research and development, process progress, etc., and then puts them in these countries for production, so that not only the product response efficiency is improved, but the cost can also be reduced.

Many multinationals do this. For example, Bosch, a German company, has a main business of auto parts. Whichever country the car factory went to, they followed and built a factory next to it.

Visual China.

Another advantage of actively embedding in the international industrial chain is that you can continue to communicate and learn from the enterprises on the chain, send back the most cutting-edge information to the parent company, know what others are producing, which direction to develop, and keep pace with the development of the world.

China's current industrial chain level is definitely not brought up by "making cars behind closed doors", but by many foreign-funded enterprises in the process of participating in the global economic division of labor. For example, in order to meet the product standards, Apple will spend a lot of energy to cultivate first-class businessmen, help improve the process, solve quality problems and management problems.

Domestic enterprises can also improve their production levels on their own, but this speed will definitely be slower. Just like before China joined the WTO, it was no problem to design a good product, but it could not be mass-produced, and the key reason was that the parts did not meet the requirements. Closure will only become more and more backward, and progress can only be made in the process of globalization and continuous comparison on a global scale.

All in all, don't approach the situation with a negative attitude. Whether it can become a good enterprise depends on which path it chooses, and if it lies flat, it will really lie flat.

Yong Jinjun: Following the first economic work conference proposed to encourage and support the development and growth of the private economy and private enterprises from the policy and the first level, the provincial party committee economic work conference also proposed to encourage private enterprises to enhance their activity and dare to try. What else do you think can be done for private enterprises?

Wang Licheng:A major premise is to correctly view the "going out" of enterprises. Zhejiang's "sweet potato economy" is described very accurately, and the "going out" of enterprises is like sweet potatoes, stretching out the vines, absorbing various nutrients, and then the fruits bear in the country, rather than like pumpkins, the vines stretch out and give birth to melons everywhere.

In the process of "going out", enterprises should play the role of think tanks and staff officers. How is the global industrial chain reconstructed?What about the trend?What is the industrial ecology of this country?Is it suitable for you?**Efforts should be focused on providing consulting services to enterprises in this regard.

In the 90s of the last century, when I went to Japan to participate in the Sino-Japanese youth exchange, I found that Japan's Ministry of Industry (equivalent to the Ministry of Industry and Information Technology) of Japan has a good understanding of the industrial situation of each country and region, including relevant data, industrial structure, and chain relationships. In addition, there are five major trading companies in Japan, which will help Japanese companies complete their global layout through the ** chain business. It is hoped that there will be more services and guidance in this area in China in the future.

Visual China.

Secondly, it calls for the implementation of GSP tax cuts for enterprises.

The essence of many problems for enterprises today is thin profits. For example, why is it difficult to get financing?Because the bank feels that private enterprises are not profitable and too risky, they dare not give it money. Why not make money?On the one hand, the industrial level is low and the technical content is not high, which is slowly changing;On the other hand, the cost is not as low as before, and the tax burden of enterprises is much heavier.

Third, we should continue to let the market play a decisive role in the allocation of resources. The market has a self-healing function, no matter how smart people are planning, they can't play the market, of course, at the critical time, we must intervene appropriately.

Fourth, we should continue to promote the rule of law and stabilize the confidence of private enterprises. Why are private enterprises panicking?Because it's not sure what will happen tomorrow if you do it today. Only by promoting the rule of law and giving private enterprises more certainty in their hearts can there be hope for the future.

Yong Jinjun: What are Holley's new plans for next year?

Wang Licheng:This year, Holley's development is still relatively stable, and there is steady progress. But we still willPrepare for the worst and develop in the best direction.

The most important thing is to intensify scientific research.

Now life is harder than before, and on the other hand, there are good points, such as the best time for domestic substitution of imports. It turns out that the company has been buying the products of a multinational company, and it is risky to buy us, but now that people have taken the initiative to cut off the supply, won't our opportunity come?

Inside Huazheng New Materials, a subsidiary of Holley. **Holley official website.

At present, Holley is going all out to develop semiconductor materials, and has selected a number of key technologies for breakthroughs, and has solved three kinds of them, which can be localized and mass-produced. If the United States does not blockade it, we will not be able to get such an opportunity.

Of course, the so-called "cold lips and teeth", if the enterprises in the first chain of the industrial chain can't survive, we can't go it alone. Therefore, in addition to itself, Holley will also assume its own social responsibility and do its best to help more enterprises to tide over the difficulties together.

I've always been a firm believerThe era of Made in China and global sales has ended, and the future is the era of China creating Global Manufacturing. Guard your own "one acre and three points of land", seize the opportunity in the problem, and try your best to survive this harsh winter. After surviving, the enterprise will definitely go to a big step.

*Please indicate the source".

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