What are the remaining entities such as Huawei ZTE and Shenzhen?

Recently, two messages have exploded in the circle of friends.

First, Shenzhen Longgang District repeatedly mentioned “Huawei” in a report on the economic analysis of the previous two months. According to the report, “From January to February, Huawei’s output value accounted for more than 47% of the total industrial output value of the above-scale industries, and the output value growth rate was nearly 40%, which was nearly 25 percentage points higher than the regional level. If Huawei is excluded, our district The total industrial output value of industrial enterprises above designated size fell by 14.3%.". This sentence reveals two points of information: First, Huawei suspects that there are signs of eviction; Second, if it comes true, the government is undoubtedly full of anxiety and worry.

Second, Shenzhen's housing prices have to go to heaven, and the average price is almost 50,000 yuan / square meter. On May 21, Shenzhen Guangming District COFCO Yunjing International opened for sale. According to the official website of Shenzhen Planning and Land Resources Committee, the filing price range of COFCO Yunjing International Project is 36,000~42,000/m2, of which the minimum filing price of 71 square meters is 36,500 yuan per square meter, and the large size is 129 square meters. The meter 4 room has the highest filing price of 42,000 yuan per square meter. For Shenzhen, where the average price is close to 50,000 yuan/square meter, Guangming District and COFCO Yunjing International Project are all price squatters.

On the one hand, the property market broke out again in Shenzhen, and on the other hand, the local government fears that enterprises should move away. Will Shenzhen’s high housing prices force Huawei, Foxconn and other companies to withdraw?

Ren Zhengfei: The more expensive the land, the smaller the industry growth space

Will Huawei headquarters leave Shenzhen? In this regard, Huawei officially denied the rumors of the relocation of the headquarters. According to the "First Financial Daily" report, a Huawei spokesperson told reporters that "Huawei has its own branches and research institutes everywhere, which is the need for business development."

Having said that, Shenzhen is indeed not the only site of focus for Huawei. According to sources, Huawei is planning to relocate its functional carriers such as Huawei University, R&D Center and pilot center to Songshan Lake in Dongguan to drive the terminal business of Dongguan and Huawei.

As early as 2013, Huawei's consumer business CEO Yu Chengdong explained the reasons for some of Huawei's move to Dongguan on Weibo. Yu Chengdong said, "Dongguan Songshan Lake is closer to Shenzhen, driving about 50 minutes. In the future, the Shenzhen Center will move closer to the north, the surrounding environment is very beautiful, the house is much cheaper, and the staff is a good place to live and work in peace!"

Look, an important reason for some of Huawei's move to Dongguan is that “the house is much cheaper and the staff is a good place to live and work in peace”.

For the high housing prices in Shenzhen, Huawei founder Ren Zhengfei recently said such a passage when interviewed by Xinhua News Agency. "Shenzhen real estate is too much, there is no large industrial land. Now the land is getting less and less, more and more expensive, and the possible space for industrial growth will become smaller and smaller. Since it is necessary to develop large industries and guide large industries, To calculate what is needed in a large industry, how is this factor averaged around the world, and how many output values ​​are carried per square kilometer? How many people need these values? These people must have housing and have living facilities. The living facilities are too expensive, the enterprises can't afford them; the production costs are too high, and the industry cannot develop.

Benefiting from geographical advantages, Shenzhen has always been the best address for Taiwanese and foreign companies to settle in the mainland. In recent years, rising housing prices have increased the land cost and operating costs of physical enterprises, and a large number of entities are withdrawing from Shenzhen.

Under high housing prices, a large number of entities were forced to leave Shenzhen.

According to statistics, in 2008-2014, due to the sharp increase in labor costs and land costs, Shenzhen Longgang closed down the low-end manufacturing industry represented by shoes and furniture. In recent years, high-end manufacturing represented by smart phones. It is also difficult to survive.

In this context, companies such as Foxconn and ZTE have already had ideas and actions to relocate.

According to the "Shenzhen Business Daily" report, in the spring of 2016, Shenzhen Foxconn has suspended the recruitment of regular employees. In November 2015, it was reported that Foxconn intends to build a 100 billion-yuan industrial park in Nanning. Foxconn also put forward the slogan of “developing the mainland, manufacturing transfer” and transferring some production lines to Yantai, Chongqing, Langfang, Hebei, and Yizhuang, Beijing.

Of course, in addition to the higher land prices and production costs in Shenzhen, there is another important reason for Foxconn to transfer production lines. Since Foxconn can improve the employment, GDP, import and export volume and other indicators of the production location, Foxconn has become the target of competition from various governments, and they have issued a series of preferential conditions for Foxconn.

In addition to Foxconn, ZTE is moving away from Shenzhen. According to the "Southern Network" report, most of ZTE's Shenzhen production base will be relocated to Heyuan. By then, the ZTE Heyuan project will have tens of thousands of workers. In 2017, the output value will be more than 10 billion yuan.

Internet companies such as LeTV and Ali favor Shenzhen?

Unlike many entities moving out of Shenzhen, some Internet companies are very popular with Shenzhen.

According to the "Shenzhen Business Daily" report, in 2016 LeTV will establish an independent legal person holding company in Shenzhen as the LeTV smart terminal headquarters, including LeTV smart TV, smart phones, music company (wearable), etc.; December 16, 2015, Shenzhen The Ali Center was completed as the international operations headquarters and commercial cloud computing R&D center planned by Alibaba Group.

Regarding the decision of LeTV's smart terminal headquarters to move to Shenzhen, Jia Yueting once said, “Shenzhen is the most innovative and entrepreneurial city, with high-tech development, consumer electronics and other technologies at the cutting-edge level. LeTV is the practitioner of the Internet economy and ecological economy. The two sides are very fit in the industrial development and value concept."

Entity companies are gone, what is left in Shenzhen?

Business and business are always the first to survive. When the cost of a city is getting higher and higher, in order to survive, enterprises will inevitably escape from this increasingly costly city.

Huang Sheng, the author of "The Currency War behind the Diaoyu Islands", once said in Huang Sheng's financial (ID: fengyuhuangshan), "For Shenzhen, the terrible thing is not a Huawei, a Foxconn, the evacuation of a physical enterprise, the terrible thing is A large number of small and medium-sized enterprises, a large number of innovative enterprises struggled and died because of high housing prices. The terrible thing is that low-end talents leave Shenzhen, but all young people are beginning to feel that even if they struggle hard, they are in the city. There is no future, because they can't afford a house, they don't feel at home, they start to leave the city."

Hong Kong - a precedent for manufacturing hollowing out

The impact of high housing prices in Shenzhen on the real estate industry has already become apparent, which has also led to debates about the danger of “hollowing” housing prices and industries in Shenzhen.

Some people think that high housing prices may make Shenzhen have the danger of going to Hong Kong's "industry hollowing out the old road": a large number of entrepreneurs, technology innovation enterprises may not be able to die, probably forced to move out.

In 1980, Hong Kong's manufacturing employment accounted for 42% of the total employed population. This is the culmination of Hong Kong's manufacturing industry. Hong Kong's light industry is one of the best in the world. However, Hong Kong at this time has begun to abandon manufacturing. The business owners on Hong Kong Island have gradually moved their factories to the Mainland. Hong Kong's local manufacturing industry has almost died clean.

In Hong Kong's economic structure, the primary industry accounts for 0.1%, the secondary industry accounts for 7% (including only 1.4% of the manufacturing industry), and 92.9% is the service industry. The biggest problem in this structure is the employment system in Hong Kong. Presenting high-end and low-end polarization, lacking a middle-level employment system. This is a dangerous signal whether it is social stability or economic development.

After the financial madness, the United States began to return to manufacturing.

The United States once strongly supported the financial predators on Wall Street, but a financial turmoil made the US government realize that finance is a beast of the United States.

The United States as a person thinks that finance is a means or a channel relative to manufacturing. When this kind of dividend is gradually disappearing, only the manufacturing industry can pick up the girders. The United States announced a high-profile return of manufacturing and the development of high-end manufacturing; in 2012, the National Strategic Plan for Advanced Manufacturing was launched. The biggest reason for this round of US economic leadership in global rehabilitation is the return and recovery of manufacturing.

For the virtual boom, the frenzy of speculation, the frenzied profit

We need pragmatism for the development of the industry.

As Ren Zhengfei said: Huawei started from a "backward factory". All companies grew up on the basis of "low technology." "If you give him the conditions, he will improve himself and catch up with himself. Will develop." Instead of engaging in "foaming, great leap forward."

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