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Phone: 029-86696506
Fax: 029-89503160
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Tide of Private Enterprise Failure-Hundreds of Thousands of Enterprises Shut Down in Environmental Storm! !!

Release time: 2017-08-31 06:33:48 Views: 947

Under the large capacity reduction capacity, aluminum prices have risen sharply. The former loss-making king of central enterprises, China Aluminum, finally ushered in a profit explosion, and profits soared 10 times in the first half of this year. "A child with a mother is like a treasure, and a child without a mother is like root grass." China ’s Hongqiao, a Hong Kong-listed private company that produces the world ’s largest primary aluminum production company, has announced that it has shut down 2.68 million tons per year. Aluminium product capacity, which accounts for nearly 30% of its total production capacity, is threatened by large-scale short selling by overseas institutions. The deterioration of the operation of private enterprises is bringing risks to our economic growth.

The house leak is in the middle of the night rain. Recently, it has been scraped across the country. The environmental storms were fierce round by round. Under the heavy pressure of environmental protection, wherever the storm went, many private enterprises, including chemical industry companies, were cut off by large areas of water and electricity, workers were unemployed, and family livelihoods were worrying. , A bit sad and wild.

In the manufacturing towns of the Yangtze River Delta and the Pearl River Delta, private enterprises without a background have become the victims of environmental storms, and have become the hardest hit areas. The last straw made in China, which has deteriorated in recent years, is at stake.

Zhejiang dyeing and textile factories: closed 377, relocated 140, signed 54 relocation agreements, and cut off 1,531. 2,577 "three-none" companies will all be closed next month.

Guangdong closed 623, relocated 265, and cut off 4,263. All San Wu businesses will be closed in October ...

The Ministry of Environmental Protection recently announced that strict management of "scattered and polluted" enterprises should be taken as one of the key contents of intensified supervision, and those enterprises that cannot upgrade and meet the emission standards will be closed before the end of September this year! As of the end of June, Beijing, Tianjin, Hebei and 28 surrounding cities had verified 176,000 “scattered and polluted” companies!
Many large and medium-sized state-owned chemical plants, thermal power plants, and steel mills, which are heavily polluted, have not been affected by environmental storms. Instead, private textiles and dyeing plants have become the focus of environmental protection supervision and closure. Such selective enforcement can itself explain problem.

Strict environmental protection investigations are unquestionable. Shangfeng requested green development as the main line to protect green mountains and rivers, and to maintain the living environment. It should have been supported by the people. However, it was too late, overkill, and many environmental protection measures reported from one extreme to the other, requiring changes to be made every day, needlessly increasing the operating costs of the enterprise, and even shutting it down across the board, whether it meets the conditions or not, indeed caused a lot of public outrage.

In the context of China's economic downturn and the rise of global trade protectionism, China's manufacturing industry has been difficult; the current production-side reform of capacity reduction has become a weapon for state-owned enterprises to raise commodity prices, clear inventory, and clear debts. Against this background, the soaring raw material prices have overwhelmed the manufacturing industry under high housing prices, high taxes and high labor costs.

It's like a patient with a cold and high fever who cools by pouring ice water on his head, and the current environmental storm is becoming the last bowl of ice water to wipe out the manufacturing industry. The sports-type, one-size-fits-all environmental protection gradually changed its taste, and a magnificent "Operation to Defend the Blue Sky" became the wail of countless private enterprises. As a private business owner said: We are afraid that every morning the sun rises, police cars, law enforcement cars, even plain clothes, and even drones are out of the factory.

The bad consequences of environmental storms continue to ferment:

1. Intensify the closure of small and medium-sized private enterprises and reduce economic vitality.

According to statistics from relevant state departments, there are currently 40 million SMEs in China, accounting for 99% of the total number of enterprises, contributing 60% of China's GDP, 50% of taxes, and 80% of urban employment. Similarly, in the world, SMEs are the main force of a country's economy and are the most valued group. In the EU, there are more than 20 million SMEs, accounting for 99.8% of the total number of EU companies. 92.2% of them are micro-enterprises with less than 10 employees.

Since 2016-2017, in the context of de-capacity and supply-side reforms, a large number of SMEs, including companies in the chemical industry, have become the targets of de-capacity, especially in the case of smog. Under the environmental protection strategy, small and medium-sized manufacturing industries have become victims, exacerbating the failure of small and medium-sized physical enterprises.

The current wave of business closures initiated by supply-side and environmental storms will spread from private SMEs to large state-owned enterprises, from the export manufacturing sector to the basic and resource-based industries, and from the living service industry to the productive service industry. .

Once the bankruptcy accelerates, a vicious cycle will occur: cheap selling → falling asset prices → rising real interest rates → more cheap selling → lower turnover rate → lower net assets → more bankruptcies → bank runs → credit shrinkage → bank selling assets → confidence is increasing The more downturn → hoard cash.

2. Increasing the advent of unemployment and increasing stability risks.

The promulgation of a document and a measure is often a meeting and a few words of effort. However, the measures introduced by public power will bring much negative impact to many families and bring unbearable weight. Within the scope of the survey by the measure maker. A detour in the country is likely to be the calamity of many families.

The small businesses that start their own businesses are basically those born in the 1970s and 1980s, who are responsible for the livelihood of the three generations of the family. The land has been transferred, and the factory has been shut down and closed down. Not only has the company died halfway, many employees will also lose their jobs and lose their jobs. Children's education, elderly care, and medical care will all become big social problems. How can the livelihood of the unemployed and the young and the young under the environmental protection storm across the board be considered as environmental protection storms?

Take Tianjin as an example. Thousands of small and micro chemical companies in various districts shut down. How many people are unemployed? What level of government or department wants to do their lives? Workers in Langfang, Hebei had been unemployed because of environmental protection rectification and power outages. It is unknown whether there will be more extreme events in the future.

3. Adding fuel to the fire of inflation, price increases have become the new normal.

Recently, the National Bureau of Statistics announced that the manufacturing PMI index for July was 51.4, which was in the boom range. Two indicators have risen sharply, the purchase price index of raw materials rose from 50.4 to 57.9, and the ex-factory price rose from 49.1 to 52.7. The above index shows that the prices of raw materials and products are rising sharply.

In textiles, machinery and electronics, packaging and other fields, prices continued to rise. The majority of foreign trade and manufacturing enterprises must pay attention to the relevant stock preparation work.

The tide of price increases in the chemical market last year was not driven by a rebound in demand, but more like environmental protection and de-capacity that caused the sudden concentration of upstream material companies' capacity to ignite the tide of price increases. This explosive price increase is difficult to transmit to the terminal enterprises, causing many small and medium chemical companies located in the midstream to collapse due to capital chain breaks and order transfers.

Taking advantage of the opportunity to reduce production capacity, it will increase prices, increase corporate profits, and reduce financial risks. This is an effective way to make this round of high debt and high leverage cycles to avoid risks. De-capacity will benefit large enterprises and banks. It is conducive to large enterprises, the debts of large enterprises are cleared, and the risks of commercial banks are reduced.

The corpses and thousands of laid-off workers who left after the collapse of SMEs, as well as the inflationary tigers that are running long distances, are the worst consequences after the total reform and environmental protection storm.

After the environmental storm, the hidden price rise has begun. In the second half of the year, many commodities are not a problem of high prices and low prices, but whether they can be bought with money. The rise in prices and the shortage of some commodities, the fire of inflation will become A beautiful spectacle, we witness together.

Although there are such difficulties, Shanghai Yuwei Bearing Co., Ltd. on behalf of Yuwei people solemnly promises to our customers that for the rising tide of environmental protection storms, if it is within the tolerance range, Yuwei Bearing Company Never increase the price. Due to the general environment, the delivery period has been extended. We hope that our customers will understand and overcome the difficulties together.

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Shanghai Yuwei Bearing Co., Ltd. (Headquarters)
Phone: 021-51099639
Fax: 021-51861291
Enterprise email: yw@gifudayo.com
Address: 2758 Songjin Road, Zhangyan Town, Jinshan District, Shanghai, China
Shaanxi Yuwei Bearing Manufacturing Co., Ltd.
Phone: 029-86696506
Fax: 029-89503160
Enterprise email: sales@gifudayo.com
Address: Qinhan New City Free Trade Zone, Xixian New District, Shaanxi Province
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