Microsoft Will Lay off 9,000 People

Original Title: World Famous Production Enterprise Leaves China Quickly, Manufacturing industry will face a big test.

Some well-known foreign companies, such as Panasonic, Daikin, Sharp, TDK, plan to further promote the manufacturing base back to Japan. UNIQLO, Nike, Samsung and other world famous enterprises opened new plants in Southeast Asia and India, which accelerate the withdrawal pace from China. In 2015, these companies entered the real test of the development of the manufacturing industry.

On the eve of the Spring Festival, It is reported that the famous Japanese watches enterprise Citizen production base in China - Citizen Precision (Guangzhou) Co., Ltd. announced the dissolution and liquidation, and more than 1000 employees were terminated the labor contract and left the factory before deadline. At the same time, Microsoft planned to shut down the NOKIA plant in Dongguan plant and Beijing, and shipped the production equipment to Vietnam plant, which made more than 9,000 people unemployed.
Dongguan was once the world's manufacturing plants, why would it face with such a severe situation? If you say that is caused by foreign company evacuation in 2008, we can still explain that these foreign enterprises encountered difficulties and investment problems during their development. But this time, there are more realistic reasons. A large number of internationally renowned companies withdrawing from China makes us feel some of the difficult things. These factors have increased the uncertainty for the Chinese economy in 2015.
Since the outbreak of the financial crisis, China has taken a series of steady growth measures, particularly in investment, but economic growth is not satisfied. Especially since the second half of last year, the economy has shown a downtrend. The economic entity has a more serious problem especially in the manufacturing industry, not only cannot provide support for the economic growth, but also has become a drag for it.

Manufacturing industry once was Chinese economic but now it becomes a burden, it is related to the recent economic strategy. The implementation of the estate virtual economy leads to the imbalance of China's economy. Chinese economy has jumped into the second largest economy after 30 years of development in the world, but the foundation of the Chinese economy is still very weak, for a quite long time after the 1997 Asian financial crisis, China is the export-oriented economy at the expense of the environment, resources and cutting labor value in order to promote economic growth, but as long as the cost advantage disappear, the export-oriented economy will lose its vitality.
Regarding estate and urban construction as the investment way can only play a temporary effect to Chinese economy, and cannot make the economy go into a sustainable development path. If China wants to achieve sustainable development, it must rely on the entity economy, the manufacturing industry. But with the development of the estate for more than ten years, manufacturing industry has been delayed and the Chinese economy appears a serious "hollow" situation.
A large number of foreign companies withdrawing from China is related to the profit decline in the manufacturing industry. Think about it, the Chinese folk capital is reluctant to stay in the manufacturing industry, why would the foreign capital still invest it? Moreover, the labor costs in countries such as Southeast Asia and India are very low.
Although there are a number of foreign companies leaving China, but do not worry too much about it, because the withdrawal of foreign investment is related to the China's economic transformation in some extent. On the one hand, Nokia, Microsoft, Panasonic and other international well-known enterprises just withdraw the factories with low production capacity, and those factories also need to reform in China. On the other hand, China has made considerable progress in these areas, and the local enterprises have the ability to compete with the international well-known enterprises, so there is less profit and market competitiveness for these foreign companies. Considering this situation, to make a strategic adjustment as soon as possible is needed.  In contrast, overseas Chinese companies return to China need to pay more attention. These companies, especially the United States, Japan, Germany are mainly produce high-tech products,  and Chinese economic structural adjustment and transformation should mainly focus on the high-tech area.

Although the influence of low-end foreign companies withdrawing from China is not so severe, especially in 2015, it still cannot be ignored. If it happens again, the Chinese economy will face a bigger test. So China needs to improve the investment environment, and pay more attention to the real economy entity, especially the manufacturing industry.

The development of the manufacturing industry entered a real test in 2015. Especially as the key manufacturing industry areas of Jiangsu, Guangdong, Zhejiang and other places, these areas should revitalize the manufacturing industry first instead of estate.