HUAWEI, PHILPS

People always watch things too much.

Rumors on the Internet are always the pursuit of sensational effect. PHILPS off the 2008 acquisition of a Shenzhen foundry. After a careful practice elegant media processing, actually turned into "PHILPS announced: from May 31st on the dissolution of the company, officially ceased operations, no longer any production".

Please, PHILPS is still the first brand in the lighting industry, is the world's largest manufacturer of lighting equipment, lighting equipment only 2015 revenue is up to 7 billion 500 million euros, operating profit of 331 million euros, there is no doubt that the industry ranked first. And not long ago in May 27th, PHILPS has just split out of the PHILPS lighting listed on the Amsterdam stock exchange in Holland, as of June 2nd, the market value of up to 3 billion 315 million, or the euro.

May listing, closed on June, I A three new board are not so good. Three new board to break the boundaries of the foot of the new brother Lun record is also listed for six months before the foot.

However, the PHILPS brand will easily lead to excessive interpretation of every act and every move outside, coincidentally, shortly before the HUAWEI home raise a Babel of criticism of Dongguan, combined with the PHILPS factory, Shenzhen once again seems to be caught in 2003 "Shenzhen whom you abandon the" tragic atmosphere in Shenzhen, not to engage in the manufacturing sector will eat jujube the public clamor pill.

When in 2003 in Shenzhen city and unmoved, no eat pills, Shenzhen completed a magnificent industrial upgrading, get rid of dependence on three industry and tax incentives. Shenzhen's spontaneous formation of private scientific and technological enterprise clusters and strong imitation innovation ability to support the development of the city's 10 years of gold.

And PHILPS turned off the lighting factory in Shenzhen, but also Shenzhen is facing a small wave of the next round of upgrading trend. In the vast territory Chinese, can be regarded as a lighting industry cluster advantage in Zhongshan and Xiamen more than two places, to expand some will Jiangxi and Chongqing is expected to use the cost advantage to the establishment of new lighting industry cluster. Originally, Shenzhen is not a suitable place for the development of the lighting industry.

The reason why Shenzhen has some lighting companies, one is similar to the PHILPS plant in Shenzhen which belongs to the same, a legacy of three times. The other is the lighting industry to LED lighting conversion period, Shenzhen enterprises in the use of the advantages of the LED and electronics industry, the stage of the development of some of the opportunities for the development of LED lighting. However, with the advantage of LED technology in the industry has been smoothed out in the process of maturity, brand and cost return to the core of the lighting industry competition.

In accordance with this trend, the loss of competitiveness of enterprises in Shenzhen is also a trend of the times, so nearly one or two years from the beginning of the lighting industry in Shenzhen is also constantly adapt to the trend of relocation, associated with the LED supply chain is also moving. Far not to say that the recent million run technology is first moved to Dongguan Songshan Lake and HUAWEI do neighbors, now do not do two endlessly, the next step directly to the production base built in Chongqing. But a big ticket Ruifeng, sferic packaging factory also or the production base moved to Fujian, or moved to Jiangxi.

Under the market economy, enterprises and human resources are free to flow, enterprises have enough wisdom to find the most suitable for their own development of the soil, human resources will choose their most wanted to engage in professional. Is the design of some no long-term incentives to lure should be the most stupid, driven by enterprises and individuals to make the wrong decision contrary to market principles, also called "industrial policy".

The media should not refer to the term coined by some ambiguous economists to scare people, but to be concerned about the truth.

We have to worry about is not the industry hollowing out. China is already the world's largest manufacturing country, manufacturing output close to the u.s.. Need to worry about the hollowing out of industry of Japan and South Korea and Taiwan such economies, their industrial position and Chinese high degree of coincidence, in the development of manufacturing industry is facing a small local market, lack of resources, expensive energy, labor population reduction factor endowment constraint. We should also be concerned that the government's hand stretched too long, the development of an outdated industrial policy".

Data source: Deloitte

Source: World Bank, Wikipedia

A latecomer economy may need to mobilize the ability of the government to focus resources to create a number of growth poles, driven by the formation of the regional economy and industrial agglomeration in order to shape a certain regional economic competitiveness. However, the inevitable result of excessive government intervention is to distort the real cost of resources, and to form the mismatch of resources.

Shenzhen, for example, is now called a new housing subsidy policy for new graduates, a knee jerk reaction to Shenzhen's perceived decline in the city's appeal to young people. This will not only help to restore the competitiveness of the city, but the young people made a major choice when the release of the wrong signal interference.

The choice of which city to develop is an irreversible decision with a fairly high switching cost, and Shenzhen's subsidies may tempt young people to go to more promising cities to make the wrong decisions. If these 20 young people because of subsidies to Shenzhen, not only pulled Shenzhen real may reflect the human cost of wages, no doubt also trained a large number of disk access man for 10 years after the Shenzhen real estate price. and