Gospel of LED Enterprises: Guangdong plans to reduce the burden on enterprises 400 billion

In recent years, in order to reduce the pressure to stimulate the real economy, many local governments in the near future intensive voice cost reduction". From the 10 provinces have been calculated to reduce the amount of target value point of view, at least this year plans to reduce the burden on enterprises over 800 billion. Among them, according to the "Guangdong Province, the supply side structural reform overall plan (2016-2018 years) and five action plan" is given the burden amount, the maximum amount of the burden of Guangdong, is expected to end this year for enterprises to reduce the cost of 400 billion.

In the face of such a huge amount of relief, former Guangdong CPPCC special committee members, Dongguan Taiwanese Ye Chunrong said in an interview: This is the gospel of the enterprise. A rising economy, enterprises are relatively easy to make money, also not complain of these taxes, but now the economic downturn, it is difficult for enterprises to survive, so great efforts to tax cuts down the negative, it is necessary to let the enterprise traveling light. "

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

As we all know, Guangdong is synonymous with China's LED industry, is the so-called global LED industry development in China, China's LED industry development in Guangdong, Shenzhen is a major pillar of the LED industry in the. But in recent years, many companies have moved away from Shenzhen.

According to statistics, in July 2011, the state of science and technology investment in Huizhou Dayawan LED construction project, and the recent application in the construction of 110 thousand square meters to base LED; in October 2011, the building also started production in Huizhou science and Technology Park in Shenzhen; the same year, Lehman photoelectric Polytron Technologies Inc opened in Huizhou industrial park.

On 2013, Mason technologies also successfully escape in Shenzhen, so far, has successfully completed the main LED packaging production line by the Shenzhen light factory to Dongguan Songshan Lake high tech Industrial Development Zone of the relocation; similarly, the beginning of this year, CISCO new factory in Dongguan, is expected to put into production.

Why are there so many factories from Shenzhen? The reason, in addition to the enterprise due to excessive influx and blind expansion and lead to overcapacity, the outflow of enterprises, labor, rent, taxes and other charges, rose, is a sharp knife firmly pressed the head of the enterprise, especially labor costs and rental costs after last year's "all the way", some enterprises have felt the pressure due to the rental costs, therefore, LED enterprises will move back to the mainland factories, abundant human resources and low cost of the city, only the R & D and sales department in Shenzhen be not at all surprising phenomenon.

Moreover, the price of Shenzhen by leaps and bounds, the consumer price high to less foreign workers can not afford to eat, can not afford, can not afford to buy more, choose to go home or business is their move, but in terms of the development of Shenzhen LED enterprises is undoubtedly a devastating blow, because of the development of enterprises is LED talents. At the same time, a large variety of LED enterprises to make the cost of the cost of wages unchanged, it is difficult to retain people, which also contributed to the removal of the LED enterprises in Shenzhen or peripheral factory.

More importantly, most of the enterprises are experiencing "increasing output without increasing income, income does not increase profits" predicament, tax LED enterprise is a huge cost, therefore, in the 6 Guangdong 400 billion this year out of the list of single tax burden, the cost of a lower amount as high as 215 billion, more than the proportion of 50%. And this is precisely the most companies look forward to the cost reduction field.

To sum up, the cost of forcing companies to flee, not alarmist, reducing costs is imperative, the introduction of the Guangdong provincial tax burden is the gospel and opportunity for enterprises. But in addition to the central and local tax cuts to reduce negative measures, the enterprise itself need to practice the internal strength, to improve management, control costs, their own digestion part of the cost, this is the basic policy. Chinese Academy of Social Sciences Institute of industrial economics researcher, Chen Yao, Secretary General of the China Regional Economic Association said.

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